economics Mcqs
1. the national economy2. profit maximizing under perfect competition and monopoly3. application of economics4. the aggregate demand aggregate supply model5. surplus6. money interest rates and output7. average and total cost8. stabilization adjustment reform and privatization9. risks and diversification efficient market hypothesis10. the phillips curve11. supply and demand12. capital formation investment choice information technology and technical progress13. aggregate supply unemployment and inflation14. elasticity15. comparative gdp16. roots of modern macroeconomics17. production factors18. poverty malnutrition and income inequality19. trade regulations and industrial policies20. monetary union21. exchange rate systems and currency crises22. economic development in historical perspective23. exchange rate determination24. monopoly competition25. the balance of payments26. inflation productivity27. macroeconomic issues and analysis28. employment migration and urbanization29. macroeconomic policy tools30. supply side policies31. exchange rate adjustments and the balance of32. miscellaneous33. taxation34. trade policies for the developing nations35. markets efficiency and the public interest36. the external debt and financial crises37. budget deficits and the trade balance38. alternative theories of the firm39. public goods40. the meaning and measurement of economic development41. characteristics and institutions of developing countries42. agriculture irrigation system of pakistan43. education health and human capital44. economic problems of developing countries45. theories of economic development46. basic of economics47. consumer theory vs real consumers48. applied microeconomics49. long term economic growth50. externality internality51. fiscal and monetary policy52. prices wages taxes53. balance of payments aid and foreign investment54. international factor movements and multinational corporations55. entrepreneurship organization and innovation56. the international economy and globalization57. population and development58. non tariff trade barriers59. foundations of modern trade theory60. global economic development61. market62. rural poverty and agricultural transformation63. regional trading arrangements64. foreign exchange65. introduction to economics66. world economy miscellaneous67. sources of comparative advantage68. natural resources and the environment toward sustainable development69. monopoly70. asymmetric information71. income inequality72. labour market73. tariffs74. development planning and policy making the state and the market75. oligopoly76. industrial development77. costs supply and perfect competition78. human capital79. monetary fiscal and incomes policy and inflation80. stocks
8651. Which one of the following fertilizers contains a high percentage of nitrogen ?
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A. None of these

B. Calcium nitrate Ammonium

C. Ammounium nitrate

D. Urea
8652. What is the top sheep producing country ?
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A. Australia

B. China

C. India

D. India

8653. Which of the following countries lead in the production of Nickel ?
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A. USA

B. Russia

C. Canada

D. China

8654. Which state is in the US produces the most blueberries ?
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A. New York

B. Texas

C. New Jersey

D. Alabama

8655. The leading producer of sulphur in the world is ?
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A. Italy

B. Canada

C. USA

D. Spain

8656. Which of the following is an agricultural produce of Taiwan ?
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A. Coffee

B. Maize

C. None of the above

D. Rice
8657. Coffee requires hot and moist climate and grows best on slopes which of the following countries is leading in coffee production ?
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A. Brazil

B. Indonesia

C. India

D. None of these

8658. Which statement best describes how a command economy functioned in the Soviet Union ?
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A. The success of the agricultural sector controlled the price of manufactured goods

B. Trade policies mandated that imports exceed exports

C. The laws of supply and demand controlled the economy

D. A central authority determined the type and quantity of goods to be produced
8659. How much of the total population of the world is living in Asia ?
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A. 58.6%

B. 51%

C. 55.50%

D. 62%

8660. Continent of South America covers ___ of the total land of earth ?
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A. 10.80%

B. 15.80%

C. 11.8%

D. 15.40%

8661. Which types of forest mostly grow in the below of land lying between 50 N and 70 N ?
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A. Temperate deciduous forests

B. None of the above

C. Tropical evergreen forests

D. Temperate coniferous forests
8662. The low heating capacity of which of the types of coal reduces its value as an industrial fuel ?
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A. Lignite

B. Peat

C. Bituminous coal

D. Anthracite

8663. The Heckscher-Ohl in model rules out the classical models basis for trade by assuming that _________ is (are) identical between countries?
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A. factor endowments

B. factor intensities

C. opportunity costs

D. technology
8664. If tastes are identical between countries, then comparative advantage is determined by ?
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A. demand conditions only

B. supply and demand conditions

C. supply condition only

D. cant tell without more information

8665. The trade model of the Swedish economies Heckscher and Ohlin maintains that ?
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A. The division of labor is limited by the size of the world market

B. Absolute advantage determines the distribution of the gains from trade

C. Comparative advantage determines the distribution of the gains from trade

D. A country exports goods for which its resource endowments are most suited
8666. In his empirical test of comparative advantage Wassily Leontief found that ?
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A. U.S imports are labor intensive relative to U.S exports

B. U.S exports are neither labor nor capital intensive

C. None of the above

D. U.S exports are capital intensive relative to U.S imports

8667. Intra-industry trade theory ?
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A. Explains why the United States might export autos and import clothing

B. ignores seasonal considerations for agricultural goods

C. Assumes that transport costs are very low or do not exist

D. Explains why the United States might export and import differentiated versions of the same product such as different types of autos
8668. Should international transportation costs decrease the effect on international trade would include a (an) ?
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A. Smaller gain from trade

B. Decline in the income of home producers

C. increase in the volume of trade

D. Decrease in the level of specialization in production

8669. One of the predictions of the Heckscher-Ohlin model is that ?
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A. countries with different factor endowments but similar technologies and preferences will have a strong basis for trade with each other

B. countries with tend to specialize but not completely in their comparative advantage good

C. reciprocal demand leads to an equilibrium terms of trade by inducing change in both demand and supply

D. All of the above
8670. By reducing the volume of trade transportation costs tend to ?
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A. eliminate all of the feasible gains from international trade

B. ensure that the process of product price equalization and factor price equalization are complete

C. stop the process of product price equalization and factor price equalization before they are complete:

D. maximize all of the feasible gains from international trade

8671. The analyzes the income distribution effects of trade in the short run when resources are immobile among industries ?
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A. Stolpher-Samuelson theory

B. specific factors theory

C. factor endowment theory

D. overlapping demand theory

8672. According to the Heckscher-Ohlin model ?
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A. The gainers from trade outnumber the losers from trade

B. The scarce factor necessarily gains from trade

C. None of the above

D. everyone automatically gains from trade

8673. In his empirical tests, Wassily Leontief used an input-output table to ?
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A. calculate the labor productivity of America workers relative to foreign workers

B. calculate the capital and labor required to produce $1 million of U.S exports and imports

C. calculate the capital productivity of American capital relative to foreign capital

D. All of the above

8674. Interindustry trade can be explained by all of the following except ?
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A. high per capita incomes in exporting countries

B. different growing seasons of the year for agricultural products

C. product differentiation for good such as automobiles

D. high transportation costs as a proportion of product value

8675. The comparative advantage model of Ricardo was based on ?
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A. income conditions underlying specialization and trade

B. interindustry specialization and trade

C. demand conditions underlying specialization and trade

D. intraindustry specialization and trade

8676. The factor endowment model of international trade was developed by ?
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A. David Ricardo

B. Eli Heckscher and Bertil Ohlin

C. Adam Smith

D. John Stuart Mill

8677. Wassily Leontief used an input output table in order to test the ?
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A. Linder theory of overlapping demand

B. Heckscher Ohl in theory of comparative advantage

C. Ricardian theory of comparative advantage

D. All of the above

8678. Which trade theory contends that a country that initially develops and exports a new product may eventually become an importer of it and may no longer manufacture the product ?
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A. Theory of factor endowments

B. Economies of scale theory

C. Product life cycle theory

D. Theory of overlapping demands

8679. Declining costs per unit of output results from international trade especially if ?
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A. International trade affords producers monopoly power

B. National governments levy imports tariffs and quotas

C. Economies of scale exist for producers

D. Producing goods entails increasing costs

8680. Leontiefs result were considered paradoxical because the United Stated was believed to be ?
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A. All of the above

B. technologically efficient relative to the rest of the world

C. labor abundant relative to the rest of the world

D. capital abundant relative to the rest of the world
8681. By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ?
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A. specialization to stop when the production costs of the trading partners equalize

B. The gains from trade to be greater than when there are no transportation costs

C. The prices of trade goods to be lower than when there are no transportation costs

D. The volume of trade to be less than when there are no transportation costs
8682. Wassily Leontiefs results can be interpreted as ?
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A. support for the Ricardian model

B. support for the Heckcher Ohlin model

C. evidence against the Heckscher-Ohl in model

D. evidence against the Ricardi an model

8683. That the division of labor is limited by the size of the market best applies to which explanation of trade ?
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A. Economies of scale theory

B. Overlapping demand theory

C. Factor endowment theory

D. Product life cycle theory

8684. _____ 1954 study of U.S trade patterns showed that U.S exports were labor-intensive compared with U.S imports, even though the United States was widely regarded as a relatively capital-abundant nation ?
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A. Wassily Leontiefs

B. Wolfgang Stolphers

C. Staffan Linders

D. Paul Samuelsons

8685. According to the Heckscher-Ohlin model the source of comparative advantage is a countrys ?
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A. technology

B. advertising

C. factor endowments

D. both (a) and (c)

8686. Difference in environmental standards or other government regulations among nations ?
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A. have tended to make U.S steel companies more competitive internationally

B. can affect production costs and thus alter comparative advantages and trade patterns

C. have no impact on patterns of international trade

D. have been eliminated by the nations participating in NAFTA

8687. The Heckshcer-Ohl assumes that are indentical between countries?
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A. tastes and preferences

B. technology levels

C. factor indowments

D. Both A and B
8688. For the United States empirical studies indicate that over the past two hundred years the cost of international transportation relative to the value of U.S imports has ?
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A. increased

B. Decreased

C. Any of the above

D. Not changed

8689. The factor endowment theory was pioneered by ?
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A. Eli Heckscher and Bertil Ohlin

B. Adam smith

C. David Ricardo

D. Wassily Leontief

8690. The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?
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A. opportunity cost

B. tastes

C. factor/resource

D. technology

8691. Advocates of industrial policy maintain that government should ?
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A. pursue free trade as a policy that leads to maximum global efficiency

B. increase interest rates on loans made to firms in import-competing industries

C. grant subsidies to firms offering potential comparative advantage

D. provide loans to domestic workers in exporting industries

8692. A product will be traded only if the pre-trade price difference between the two countries ?
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A. more information in needed to answer this

B. equals the cost of transporting it between them

C. is less than the cost of transporting it between them

D. is greater than the cost of transporting it between them equals the cost of transporting it between them
8693. Industrial policies intended to foster comparative advantage for domestic industries could result in the implementation of ?
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A. loan guarantees

B. low interest rate loans

C. All of the above

D. research and development subsidies

8694. Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?
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A. wages should fall and rents should raise in Country A

B. wages should rise and rents should fall in Country A

C. wages and rents should rise in Country A

D. wages and rents should fall in Country A

8695. Dynamic comparative advantage theory ?
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A. Is another name for Ricardos comparative advantage theory?

B. None of the above

C. helps explain why some nations use industrial policy to support potentially competitive new firms

D. cannot explain strategic competition between firms such as Boeing and Airbus

8696. The product cycle theory of trade is essentially a ?
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A. static, short run trade theory

B. negative-sum theory of trade

C. dynamic long run trade theory

D. zero-sum theory of trade

8697. According to the factor price equalization theorem, the ________ factor should oppose free. trade policies in any given country?
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A. scarce

B. neither

C. cant tell without more information

D. abundant

8698. The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries ?
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A. Research and development expenditures

B. Economies of large-scale production

C. Relative costs of labor

D. Relative abundance of various resources
8699. According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ?
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A. Import products that are land-intensive

B. Export products that are land-intensive

C. Devote insufficient amounts of resources to agricultural production

D. Devote excessive amounts of resources to agricultural production

8700. The theory of overlapping demand predicts that trade in manufactured goods is unimportant for countries with very different ?
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A. Expectations of future interest rate levels

B. Tastes and preferences

C. Per-capita income levels

D. Labor productivities