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
8851. A minimum wage law tends to ?
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A. Create more unemployment in low-skill job markets than in high-skill job markets

B. Create more Unemployment is high-skill job markets than in low-skill job markets

C. have no impact on unemployment as long as it is set above the competitive equilibrium wage

D. Help all teenagers because they receive a higher wage than they would otherwise

8852. Supply side policies are most appropriate to cure ?
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A. Cyclical unemployment

B. Involuntary unemployment

C. A fall in aggregate demand

D. Voluntary unemployment

8853. Union might increase efficiency in the case Where they ?
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A. Lower the wage of local outsiders

B. Raise the wage for insiders above the competitive equilibrium

C. Offset the market power of a large firm that is the dominant employer in a region

D. Threaten a strike but dont actually follow through so there are not lost hours of work

8854. Which of the following government policies would fail to lower the unemployment rate ?
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A. Establishing employment agencies

B. Establishing right-to-work laws

C. Raising the minimum wage

D. Reducing unemployment benefits

E. Establishing worker training Programs

8855. Reducing involuntary unemployment ?
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A. Helps the economy move along its Production Possibility Frontier

B. Helps the economy move on the to Production Possibility Frontier

C. Helps the economy move inside the Production Possibility Frontier

D. Helps shift the economys Production Possibility Frontier outwards

8856. Occupational immobility of labour occurs if ?
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A. People cannot afford to move location

B. People do not have the right skills to work

C. People do not want to work

D. People lack information

8857. Unions tend to increase the disparity in pay between insiders and outsiders by ?
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A. increasing the wage in the Unionized sector, Which may create a decrease in the supply of workers in the non-unionized sector

B. Increasing the demand for workers in the Unionized sector

C. Increasing the wage in the Unionized sector which may create an increase in the supply of workers in the non-unionized sector

D. decreasing the demand for workers in the Unionized sector

8858. Which of the following is an example of a reason why firms might pay efficiency wages ?
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A. At equilibrium wages workers often quit to find better jobs.

B. At equilibrium wages workers sleep when the boss is not looking because workers are not deeply concerned about being fired

C. All of these answers

D. At equilibrium wages, workers cannot afford a healthy diet so they fall asleep at work due to a lack of energy

E. At equilibrium wages only minimally qualified workers apply for the job

8859. Refer to Figure 1. The unemployment rate is ?
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A. Not Enough

B. 5.8 Percent

C. 5.7 Percent

D. 3.2 Percent

8860. If the minimum wage is set above the equilibrium wage rate, then another thing unchanged ?
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A. More people will be employed

B. There will excess demand in the labour market

C. There will be equilibrium in the labour market

D. There will be excess supply in the labour market

8861. According to the Office of National Statistics UK, a husband who chooses to stay home and take care of household is ?
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A. Employed

B. Not in the labour force

C. A discouraged worker

D. Unemployed

8862. TO reduce cyclical unemployment the government might ?
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A. Increase the budget surplus

B. Reduce interest rates

C. Increase the balance of payment deficit

D. Reduce government expenditure
8863. If, for any reason the wage is held above the competitive equilibrium wage?
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A. The quantity of labour supplied will exceed the quantity of labour demanded and there will be Unemployment

B. The quantity of labour demanded will exceed the quantity of labour supplied and there will be a labour shortage

C. The quality of workers in the applicant pool will tend to fall

D. Unions will likely Strike and the wage will fall to equilibrium

8864. If the real wage is too high in the labour market ?
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A. The quantity demanded of labour is lower than the quantity supplied

B. The quantity demanded of labour is higher than the quantity supplied

C. The quantity demanded of labour equals the quantity supplied

D. It will automatically adjust in the short run to bring equilibrium

8865. The Marginal Revenue Product is ?
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A. Upward sloping due to the law of demand

B. Upward sloping due to the law of marginal utility

C. Downward sloping due to the law of diminishing returns

D. Downward sloping due to the law of supply

8866. Some frictional Unemployment is inevitable because ?
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A. Efficiency wages may hold the wage

B. of minimum wage laws

C. All of these answers

D. There are changes in the demand for labour among different firms.

E. Of unions

8867. If there is cyclical unemployment in the economy the government might ?
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A. Reduce government spending

B. Cut taxes

C. Increase interest rates

D. Encourage savings
8868. Less demand in the economy may increase unemployment; this may lead to less spending which may reduce demand further. This is called ?
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A. The downward mpc

B. The downward multiplier

C. The upward PPF

D. The upward accelerator

8869. Sector shifts tend to raise which type of unemployment ?
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A. Unemployment due to unions

B. Unemployment due to efficiency wages

C. Structural Unemployment

D. Frictional Unemployment
8870. Which of the following types of unemployment will exist even if the wage is at the competitive equilibrium ?
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A. Unemployment due to minimum-wage laws

B. Unemployment due to efficiency wages

C. Frictional Unemployment

D. Unemployment due to unions

8871. A profit maximising firm will employ labour up to the point where ?
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A. Marginal revenue product = average cost of labour

B. Marginal revenue product = marginal cost of labour

C. Marginal cost = marginal product

D. Marginal revenue = marginal product

8872. If employees cannot accept a job because of the costs of moving this is known as ?
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A. Structural immobility

B. Geographical immobility

C. Occupational immobility

D. Cyclical unemployment
8873. A miner who has been unable to find work for so long that he has stopped looking for work is considered to be ?
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A. Unemployed

B. Not in the adult population

C. Employed

D. Not in the labour force
8874. Which of the following statements about efficiency wage theory is true ?
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A. Paying above the competitive equilibrium wage may improve worker health lower worker turnover improve worker quality and increase worker effort

B. Paying the lowest possible wage is always the most efficient (Profitable)

C. Paying above the competitive equilibrium wage tends to cause workers to shirk their responsibilities

D. Firms do not have a choice about whether they pay efficiency wages or not because these wages are determined by law

8875. Demand for labour is more likely to be wage inelastic if ?
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A. It is easy to replace labour

B. Wages are a small proportion of total costs

C. Capital is a good substitute for labour

D. Demand for the final product is price elastic

8876. If people are made unemployed because of a fall in aggregate demand this is known as ?
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A. Cyclical unemployment

B. Frictional unemployment

C. Seasonal unemployment

D. Structural unemployment

8877. In a perfectly competitive labour market firms are wage takers and the marginal cost of labour equals?
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A. The marginal product

B. The marginal revenue

C. The total cost of labour

D. The average cost of labour

8878. A decrease in the supply of labour is likely to lead to ?
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A. A lower equilibrium wage and lower quantity of labour

B. A higher equilibrium wage and higher quantity of labour

C. A lower equilibrium wage and higher quantity of labour

D. A higher equilibrium wage and lower quantity of labour
8879. Which of the following is not a supply side measure ?
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A. Providing more information

B. Helping individuals to move location to find work

C. Increasing spending on existing industries

D. Increased training

8880. The natural rate of unemployment is likely to fall if ?
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A. Geographical immobility increases

B. unemployment benefits increase

C. Income tax increases

D. More training is available for the unemployed

8881. A reservation wage is the ?
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A. tip necessary to get a waiter to reserve a table

B. competitive equilibrium wage.

C. Maximum wage the firm is willing to pay

D. minimum wage the worker is willing to accept
8882. An increase in the wage rate ?
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A. is illegal in a free market

B. Will decrease total earning if the demand for labour is wage elastic

C. Will usually lead to more people employed

D. will cause a shift in the demand for labour
8883. The Marginal Revenue Product is likely to be wage inelastic if ?
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A. Labour costs are a high percentage of total costs

B. There are many substitutes for the final product

C. It is relatively easy to substitute capital for labour

D. Demand for the final product is price inelastic

8884. Refer to Figure 1 The labour fouce is ?
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A. 134.0 million

B. 98.0 million

C. None of theses answers

D. 92.3 million

8885. IF Unemployment insurance were so generous that it paid laid off workers 95 percent of their regular salary ?
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A. None of these answers

B. The official unemployment rate would probably overstate true unemployment

C. The official unemployment rate would probably understate true unemployment

D. Frictional Unemployment would fall

E. There would be no impact on the official unemployment rate

8886. A fall in demand for labour is likely to lead to ?
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A. A higher equilibrium wage and lower quantity of labour

B. A lower equilibrium wage and higher quantity of labour

C. A lower equilibrium wage and lower quantity of labour

D. A higher equilibrium wage and higher quantity of labour

8887. Which one of the following types of Unemployment results from the wage being held above the competitive equilibrium wage ?
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A. None of these answers

B. Sectoral Unemployment

C. Structural unemployment

D. Cyclical Unemployment

E. Frictional Unemployment

8888. Refer to Figure 1. The labour force participation rate is ?
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A. 50.2 Percent

B. 70.2 Percent

C. 65.9 Percent

D. 47.1 Percent

8889. The amount of unemployment that the economy normally experiences is known as ?
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A. The natural rate of unemployment

B. frictional unemployment

C. cyclical unemployment

D. efficiency wage unemployment

8890. A tariff that prohibits imports has only ?
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A. a revenue effect and redistribution effect

B. consumption effect and protection effect

C. revenue effect and protection effect

D. redistribution effect and consumption effect

8891. With free trade the total value of imports would equal ?
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A. $800,000 units

B. $600,000 units

C. $400,000 units

D. $100,000 units

8892. If a country an imposes an import tariff, its welfare can improve if ?
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A. Its governments tax revenue increases because of the tariff

B. the country is a small country rather than a larger country

C. its terms of trade improve enough

D. The tariff enhances the welfare of its trading partners

8893. With free trade the total quantity of imports would equal ?
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A. 42,000 units

B. 40,000 units

C. 10,000 units

D. 50,000 units

8894. If a nation fitting the criteria for the large nation model imposes an import tariff ?
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A. None of the above

B. the domestic price of the product will increase by more than the tariff itself

C. The domestic price of the product will increase by the same amount as the tariff

D. The domestic price of the product will increase by less than the tariff
8895. In developed countries, tariffs on raw materials tend to be ?
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A. equal to tariffs on manufactured goods

B. lower than on manufactured goods

C. higher than on manufactured goods

D. highest of all

8896. If the world price of steel is $500 a ton a specific tariff $50 is equivalent to an ad valorem tariff of______________?
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A. 5 percent

B. 10 percent

C. 15 percent

D. 20 percent

8897. Suppose that Pakistan imposes a tariff on ballpoint pens of 25 rupees per pen plus 12 percent of the pens value, this is an example of a (an) ?
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A. ad valorem tariff

B. specific tariff

C. compound tariff

D. effective tariff

8898. Suppose that the offshore assembly provisions (OAP) of the United States are granted to finished computers that are imported and produced domestically This policy will tend to ?
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A. Increase the Production of computers in the United States

B. cause foreign assemblers of computers to use more computer components that are supplied by countries other than the United States

C. Increase the Price of computers to consumers in the United States

D. Increase the production of computer components in the United States
8899. Suppose there is no tariff on imported inputs and the ratio of the value of imported inputs the value of the final product is 0.5 If the nominal tariff rate on the final product is 10 percent, the effective tariff rate equals ?
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A. 5 percent

B. 10 percent

C. 20 percent

D. 15 percent

8900. If I purchase a stereo from South Korea, I obtain the stereo and South Korea obtains the dollars But if I purchase a stereo produced in the Pakistan I obtain the stereo and the rupees remain in Pakistan, This line of reasoning is ?
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A. valid for stereos, but nor for most products imported by Pakistan

B. deceiving since Koreans eventually spend the dollars on Pakistani goods

C. valid for most products imported by Pakistan but not for stereos

D. deceiving since the dollars spent on a stereo built in the Pakistan eventually wind up overseas