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
8701. Boeing aircraft company was able to over its production costs of the first jumbo jetll in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates ?
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A. How a natural monopoly is forced to behave more competitively with international trade

B. How economies of scale make possible a larger variety of products in international trade

C. How a natural monopoly is forced to behave less competitively with international trade

D. A transfer of wealth from domestic consumer to domestic producer as the result of trade

8702. According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?
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A. similar wage levels

B. similar per-capita incomes

C. similar endowments of natural resources

D. similar levels of technology

8703. Land and natural resources are considered ?
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A. non-producible

B. common property resources

C. capital accumulation

D. output

8704. An example of a transfer payment is ?
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A. Profit

B. government purchases

C. rent

D. unemployment benefits

E. wages

8705. Real GDP is measured in __________ prices while nominal GDP is measured in _________ prices?
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A. foreign; domestic

B. domestic; foreign

C. base year; current year

D. intermediate; final

E. current year; base year

8706. Many environmental resources are public goods, which are characterized by ?
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A. nonrivalry and nonexclusion in consumption

B. rivalry and exclusion in consumption

C. nonrivalry but exclusion in usage

D. rivalry but nonexclusion in production

8707. The Genuine Progress indicator is ?
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A. increasing from 1976 to 2000

B. also known as index of Sustainable Economic Welfare per capita

C. resource depletion and environmental cost divided by GDP per capita

D. GDP plus resource depletion and environmental cost

8708. Deforestation ?
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A. augments carbon restoration provided by forest

B. leads to localized flooding

C. #NAME?

D. reduces sustainable logging potential

8709. Micheal Roemers three-sector model shows that growth in the booming export sector I- reduces the price of foreign exchange II- retards other sectors growth by reducing incentives to export other commodities III- reduces incentives to replace domestic goods for imports IV- raises factor and input prices for non-booming sectors ?
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A. I and III only

B. I, II , III only IV

C. I, II and III only

D. II and III only

8710. In a boom ?
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A. Shortages may occur

B. Prices are likely to fall

C. Surpluses are likely to occur:

D. Supply will increase immediately to match demand
8711. Progress that meets the needs of the present without compromising the ability of future generations to meet their own needs is ?
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A. net primary productivity (NPP)

B. the tragedy of commons

C. the impossibility theorem

D. sustainable development
8712. UK GDP would exclude which of the following ?
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A. Lawyer services purchased by a home buyer

B. Copper purchased by tap manufacturer Bristan

C. Lawn care services purchased by a home owner.

D. The purchase of a new Nissan produced in Sunderland

E. A new art gallery purchased by the city of Newcastle

8713. The standard of living is often measured by ?
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A. Real GDP per capita

B. Real GDP plus depreciation

C. Real GDP

D. Real GDP population

8714. Biodiversity ?
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A. refers to reconstruction of tropical rainforests

B. refers to diversifying earths nonrenewable resource

C. refers to biological effects on commercial plantation

D. includes genetic species ecosystem and functional diversities
8715. The government levying taxes on polluters or charging a surcharge for pesticide use are ?
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A. internalization of negative spillover effects

B. examples of Coases theorem

C. marginal abatement cost

D. examples of a free rider

8716. In a recession a government ?
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A. Is likely to want to decrease demand in the economy

B. Is likely to want to decrease demand in the economy

C. Is likely to want to stabilise demand in the economy

D. Is likely to want to increase supply in the economy
8717. A higher GDP per capita may not means that the quality of life has really improved because ?
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A. It does not measure the quality of the items produced

B. It measures Gross Domestic Product

C. It measures wealth not income

D. It is only measured every five years:

8718. If nominal GDP in 2005 exceeds nominal GDP in 2004, then the production of output ?
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A. may have risen fallen, or stayed the same because there is not enough information to determine what happened to real output

B. must have risen

C. must have fallen

D. must have stayed the same

8719. To adjust from Gross National Product to Net National Product ?
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A. Deduct subsidies

B. Deduct depreciation

C. Deduct indirect taxes

D. Add inflation

8720. Which of the following is an example of tragedy of commons ?
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A. common use of public toilets

B. smoking in a public place

C. over fishing

D. excessive rain

8721. The green house effect is the phenomenon by which ?
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A. biological diversity is dominant in agricultural production

B. the globes water pollution affects plankton

C. climatic changes occur naturally in the forest

D. the earths atmosphere traps infrared radiation
8722. According to Coases theorem when property rights are well defined and legally enforceable and transactions costs are not prohibitive ?
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A. participants will organize their transactions

B. population growth leads to rigid land rights

C. individuals overuse of the biosphere is curtailed

D. violence displacement erosion and poverty are minimized

8723. In a recession ?
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A. Unemployment is likely to be low

B. Growth is slow

C. Growth is negative

D. Prices are likely to increase

8724. The Organization of Petroleum Exporting Countries (OPEC) is a(n) _________whose members agree to limit output and fix prices?
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A. monopoly

B. entropy

C. industry

D. cartel
8725. If a cobbler buys leather for Rs100 and thread for Rs50 and uses them to produce and sell Rs500 worth of shoes to consumers the contribution to GDP is ?
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A. Rs500

B. Rs650

C. Rs100

D. Rs50

8726. GDP plus net property income from abroad equals what ?
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A. Real GDP

B. GNP

C. Depreciation

D. NNP

8727. If Pakistans GDP exceeds Pakistans GNP, then ?
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A. intermediate production exceeds final production

B. real GNP exceeds nominal GNP

C. foreigners are producing more in the Pakistan then Pakistanis are producing in foreign countries

D. real GDP exceeds nominal GDP

8728. Gross National Product equals ?
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A. Gross Domestic Product adjusted for inflation

B. Gross Domestic Product plus net property income from abroad

C. Net National Product plus net property income from abroad

D. Net National Product adjusted for inflation

8729. The value of plant and equipment worn out in the process of manufacturing goods and services is measured by ?
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A. intermediate production

B. consumption

C. depreciation

D. Net National Product

E. Investment

8730. Air pollution from automobile exhausts, and water pollution steel plants are examples of ?
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A. negative externalities

B. social distortion

C. internal spillover

D. external economies

8731. The booming of North Seas gas export revenues in the 1970s that appreciated the guilder, making industrial export more costly in foreign currencies and increasing foreign competition and unemployment is known as ?
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A. Trade deficit

B. Dutch disease

C. Economic turmoil

D. Blind river disease

8732. Which of the following would be excluded from UK GDP fro 2005? The sale of ?
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A. the value of a lawyers services

B. All of things mentioned in these answers should be counted in 2005 GDP.

C. a 2005 Honda made in Swindon

D. a haircut
8733. Theodore panayotou (1993) argues that environment degradation originates from the following EXCEPT ?
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A. defective economic policies

B. inadequate property

C. markets distortions

D. the expansion of capitalism
8734. Irreversibility refers to ?
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A. natural resource that cannot be reproduced in the future if we fail to preserve them now

B. industrialization replacing agriculture in LDCs

C. natural extinction of various species in DCs

D. obtaining intellectual property rights for products

8735. GDP would include which of the following ?
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A. the value of taking a day off from work

B. illegal drug sales

C. consulting services

D. housework

E. intermediate sales

8736. Net National Product equals ?
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A. Gross National Product minus depreciation

B. Gross Domestic Product plus net property income from abroad

C. Gross Domestic Product adjusted for inflation

D. Gross National Product adjusted for inflation

8737. Pakistans Gross Domestic Product (in contrast to Gross National Product) measures the production and income of ?
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A. Pakistan -owned firms no matter where they are located in the world

B. The domestic manufacturing sector only

C. none of these answers

D. People and factories located within the borders of the Pakistan

E. The domestic service sector only

8738. How is your purchase in Pakistan of a Rs40,000 BMW automobile that was produced entirely in Germany recorded in the Pakistans GDP accounts ?
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A. Net exports increase by Rs40,000

B. Consumption in increase by Rs40,000 and net export decreases by Rs40,000

C. Investment increased by Rs40,000 and net exports increases by Rs40,000

D. There is no impact because this transaction does not involve domestic production

8739. Gross Domestic Product can be measured as the sum of ?
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A. Net National Product Gross National Product, and Disposable personal income

B. final goods and services intermediate goods, transfer payments, and rent

C. investment wages profits and intermediate production

D. consumption investment government purchases and net exports

E. consumption transfer payments. wages and profits.

8740. Negative externality is also known as ?
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A. marginal damage

B. resource curse

C. public goods

D. external diseconomies
8741. Which of the following country has 25 percent of the worlds estimated oil reserves and the lowest cost production as well as a dominant role in OPEC pricing ?
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A. Venezuela

B. Russia

C. Iraq

D. Saudi Arabia
8742. To adjust GDP from market prices to factor cost ?
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A. Deduct indirect taxes and add subsidies

B. Subtract subsidies

C. Add indirect taxes

D. Deduct indirect taxes and subsidies

8743. Gross Domestic Product is the sum of the market value of the ?
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A. final goods and services

B. manufactured goods

C. inferior goods and services

D. mal goods and services

E. intermediate goods

8744. The Club of Rome Study, The Limits to Growth suggests that as natural resources diminish ?
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A. costs rise, leaving less capital for future investment

B. technological change compensates for capital depletion

C. contingent valuation becomes critical

D. capital increasingly replaces labor

8745. If your grandparents buy a newly built retirement home, this transaction would affect ?
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A. consumption

B. government purchases

C. net exports

D. none of these answers

E. investment
8746. The Montreal Protocal, signed in 1987 and strengthened in 1990 ?
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A. attains the global optimal level of common property resource

B. minimizes free riders of public goods

C. relies on internationally tradable emission permits

D. reduces ozone depletion through the cutting of chlorofluorocarbon production
8747. In price discrimination, which section of the market is charged the higher price ?
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A. The section with the richest people

B. The section with the most elastic demand

C. The section with the most inelastic demand

D. The section with the oldest people

8748. When a monopolist produces an additional unit, the marginal revenue generated by that unit must be ?
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A. below the price because the price effect outweighs the output effect

B. below the price because the output effect outweighs the price effect

C. above the price because the output effect outweighs the price effect

D. above the price because the price effect outweighs the output effect

8749. A monopoly is able to continue to generate economic profits in the long run because ?
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A. Potential competitors sometimes dont notice the the profits.

B. the monopolist is financially powerful.

C. of all of the things described in these answers

D. there is some barrier to entry to that market

E. antitrust laws eliminate competitors for a specified number of years.

8750. The monopolists supply curve ?
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A. is the marginal cost curve above average total cost

B. is the marginal cost curve above average variable cost?

C. does not exist

D. is the upward-sloping portion of the average total cost curve

E. The upward-sloping portion of the average variable cost