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
8901. In todays world, most countries impose tariffs ?
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A. only on imports

B. only on exports

C. on both imports and exports

D. on imports exports and nontraded goods

8902. For advanced countries such as the United States, tariffs on imported raw materials tend to be ?
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A. equals to tariffs on imported manufactured goods

B. higher than tariffs on imported manufactured goods

C. The highest of all tariffs

D. lower than tariffs on imported manufactured goods
8903. A tax of 20 rupees per unit of imported cheese would be an example of a (an) ?
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A. Compound tariff

B. Effective tariff

C. Ad valorem tariff

D. Specific tariff
8904. With the tariff the government collects?
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A. $125,000

B. $150,000

C. $75,000

D. $100,000
8905. The difference between what consumers have to pay for a particular and what they are willing to pay is known as ?
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A. consumer surplus

B. producer surplus

C. deadweight surplus

D. deadweight costs

8906. According to the _____ argument for protection, tariffs can shield new industries from import competition until they have grown strong and efficient enough to withstand the competition by foreign producers ?
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A. foreign dumping argument

B. beggar they neighbor argument

C. scientific tariff argument

D. infant industry argument
8907. If no imported inputs (hard-disk drive) go into the domestic production of a final product (desktop computer) then the ?
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A. None of the above

B. nominal tariff rate on the final product equals the effective tariff rate on the product

C. nominal tariff rate on the final product is greater than the effective rate on the product

D. nominal tariff rate on the final product is less than the effective tariff rate on the final product

8908. A tax of 15 percent per imported item would be an example of a (an) ?
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A. Ad valorem tariff

B. Specific tariff

C. Compound tariff

D. Effective tariff

8909. The deadweight cost of the tariff equals ?
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A. $25,000

B. $50,000

C. $10,000

D. $75,000

8910. Specific tariffs are collected as ?
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A. a percentage of the quantity of imports

B. All of the above

C. a percentage of money per unit traded

D. fixed amount of money per unit traded
8911. If we consider the impact on both consumers and producers, then protection of the steel industry is ?
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A. In the interest of the U.S as a whole but not in the interest of the state of Pennsylvania where steel mills are located

B. In the interest of the U.S as a whole and in the interest of the state of Pennsylvania

C. Not in the interest of the U.S as a whole, nor in the interest of the state of Pennsylvania

D. Not in the interest of the U.S as a whole, but it might be in the interest of the state of Pennsylvania
8912. Most tariffs have ?
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A. only revenue effects

B. only protective effects

C. Both protective and revenue effects

D. neither protective or revenue effects

8913. Ad valorem tariffs are collected as ?
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A. fixed amounts of money per unit traded

B. a percentage of the quantity of imports

C. All of the above

D. a percentage of the price of the product
8914. Domestic producers gain ________ because on the tariff?
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A. $120,000

B. $50,000

C. $75,000

D. $150,000

8915. A tariff of ________ would be prohibitive causing imports to fall to zero?
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A. $20

B. $10

C. $15

D. $25

8916. Suppose that the nominal tariff rate on finished computers is 12 percent and that the weighted average of the nominal tariff rates on the inputs used in producing computers is 18 percent. Thus, the effective rate of protection for the computer industry must ?
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A. exceed 30 percent

B. be less than 12 percent but must be greater than zero

C. equal 6 percent

D. be less than 12 percent and can be negative
8917. A tariff ______ increase a country overall welfare?
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A. will never

B. can sometimes

C. None of the above

D. will always

8918. Concerning a governments trade policy, all the following generally apply except ?
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A. When domestic exporting companies are organized, policy tends to favor freer trade

B. economic downturn and recession generally result in greater protectionism

C. Policy tends to favor freer trade in countries whose imports are inputs into critical industries

D. because domestic consumers outnumber domestic producers policy markers usually enact Free-trade policies to satisfy the consumer majority:
8919. A foreign-trade zone (FTZ) is ?
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A. a regional area within which trade with foreign nations is allowed

B. designed to promote exports by deferring imports duties on intermediate inputs and waving such duties if the final product is re-exported rather than sold domestically

C. designed to limit exports of manufactured goods by placing export taxes on goods made within the zone

D. a free trade agreement among several nations

8920. The effective rate of protection ?
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A. distinguishes between tariffs that are effective and those that are ineffective

B. is the minimum level at Which a tariff becomes effective in limiting imports?

C. shows the increase in value added for domestic production that a particular tariff structure makes possible, in percentage terms

D. shows how effective a tariff is in raising revenue for the government

8921. The national security argument for protection is more likely to be valid when ?
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A. The industry is characterized by increasing returns to scale

B. The protected industry provides invaluable goods during periods of war

C. The purpose is to maintain protection for an indefinite time period

D. The economy operates during a recession

8922. A tariff can _______ raise a countrys welfare?
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A. always

B. sometimes

C. None of these

D. never

8923. If a small country imposes a tariff on an imported good, its terms of trade will ?
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A. not change

B. any of these

C. improve

D. worsen

8924. With the tariff, the quantity of imports falls to ?
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A. 20,000 units

B. 42,000 units

C. 12,000 units

D. 30,000 units

8925. If a nation fitting the criteria for the small nation model imposes a 10 percent tariff on imports of autos ?
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A. The price of autos within the nation will rise by more than 10 percent

B. The price of autos will not rise because of internal competition

C. The price of autos within the nation will rise by 10 percent

D. The price of autos within the nation will rise by less than 10 percent

8926. _______ represents the difference between what consumer have to pay for a product and what they are willing and able to pay ?
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A. consumer surplus

B. government surplus

C. producer surplus

D. deadweight surplus

8927. Concerning import tariffs of the United States empirical studies tend to conclude that these tariffs are ?
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A. deflationary and thus result in reductions in the price of imports

B. Progressive and thus bear down on the wealthy

C. proportional and thus bear down on all consumers in the same manner

D. regressive and thus bear down on the poor
8928. Governments use of coordinated policies to achieve national economic objectives is ?
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A. public physical policy

B. development planning

C. entrepreneurial programs

D. commanding heights

8929. Branko Horvats historical review of the last two and one-half century indicates that in large part market or decentralized socialism ?
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A. has failed

B. is widely used in sub Saharan Africa

C. is the only way to eradicate poverty?

D. works well in Utopia

8930. Planning in many LDCs has failed because detailed programs for the public sector have not been worked out and ?
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A. governments depend primarily on their colonial masters

B. the brain drains cost government substantially

C. monopolies dominate in the agricultural sector

D. excessive controls are used in the private sector
8931. Deepak Lal argues that development economics is dominated by _______ approach that favors government intervention into LDC prices?
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A. Commanding heights

B. dirigiste

C. Keynesian

D. soft budget

8932. Under Soviet-type economy-wide central planning ?
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A. resources are privately owned by capitalists

B. most resource lack freedom to move to their highest value uses

C. resources owned by private entities moves to efficient use but not those owned publicly

D. resources are free to move to their lowest cost uses

8933. According to Oskar Langes model socialist enterprises should produce where ?
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A. The monopoly profit maximization rule applies

B. marginal revenue equals average cost

C. total revenue equals total cost

D. Product price equals marginal cost
8934. Goals are achieved through ____ such a monetary fiscal, exchange rate tariff tax subsidy, business incentive foreign investment and foreign aid?
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A. indicative plan

B. central planning

C. instrument variables

D. central bank policies

8935. Worker-managed socialism helped contribute to ________ s rapid economic growth from 1959 to 1979?
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A. Vietnam

B. Yugoslavia

C. Japan

D. Chile

8936. A state planning ideology arose in LDCs as a reaction to nationalist perceptions of ?
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A. slow economic growth under colonial capitalism

B. western countries, nation-state ideology

C. minimizing public spending in the rural areas

D. Keeping balanced budget, a price target

8937. Which of the following assumptions underlying input-output analysis raises about its validity ?
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A. There are no externalities so that the total effect of carrying out several activities is the sum of the separate effects

B. #NAME?

C. There is no technical change

D. The technical coefficients are fixed which means so substitution between inputs occurs

8938. The market efficiently allocates scarce resource among alternative ends such that ?
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A. #NAME?

B. Production resources hire out to maximize income)

C. the market distributes income among rich individuals

D. consumers receive goods for which they are willing to pay

8939. Most mixed or capitalist developing countries are limited to an indicative plan, which indicates expectations, aspirations, and intentions ?
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A. of implementation through foreign aid

B. but falls short of authorization

C. with immediate implementation

D. of the central bank

8940. A medium-term plan can be a(n) ________ revised at the end of each year?
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A. rolling plan

B. perspective plan

C. instrument variable

D. seasonal expenditure

8941. Annual GNP growth of 6% poverty reduced by 1% point of the population Balance of payments deficit not in excess of $200 million For a planner, the above are ?
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A. achieved only through socialism

B. bound by soft budget

C. recurrent expenditures

D. target variables
8942. The input-output table, when divided vertically shows ?
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A. the planned public capital divided by feasible actual industrial projects public capital

B. the inputs to each industry from other industries and sectors

C. development planning and the required information on national income growth

D. how the output of each industry is distributed within the sectors of the economy

8943. Polish economist Oskar Langes model of decentralized ______ combined the advantages of market allocation with more uniform income distribution by dividing the returns from social ownership of nonhuman productive resources among the whole population ?
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A. mixed economy

B. monopoly

C. capitalism

D. market socialism
8944. Takatoshi Ito (1992) contends that parliamentary governments manipulate the timing of _____ while presidential governments manipulate the timing of _____?
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A. economic policies; political policies

B. monetary policy, fiscal policy

C. tax collection, tax implementation

D. elections; economics policies
8945. Which of the following is not a public policy to promote the private sector ?
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A. Creating markets, including commodity markets, security exchanges, banks credit facilities and insurance companies

B. Providing adequate infrastructure for public and private agencies

C. Investigating development potential through scientific and market research and natural resources surveys

D. Increasing market monopolies and oligopolies to help producers
8946. Collusion is difficult for an oligopoly to maintain ?
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A. because, in the case of oligopoly self-interest is in conflict with cooperation.

B. all of these answers

C. because antitrust laws (also known as competition laws) make collusion illegal

D. if additional firms enter of the oligopoly

8947. A situation in which oligopolists interacting with one another each choose their best strategy given the strategies that all the other oligopolists have chosen is known as a ?
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A. collusion solution

B. cartel

C. Nash equilibrium

D. dominant strategy.

8948. In Game Theory ?
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A. Firms collude as part of cartel

B. Firms are assumed to act independently

C. Firms consider the actions of others before deciding what to do

D. Firms are assumed to cooperate with each other

8949. Many economics argue that resale price maintenance ?
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A. has a legitimate purpose of stopping discount retailers from free riding on the services provided by full services retailers?

B. is price fixing and, therefore is prohibited by law

C. enhances the market power of the producer

D. is price fixing and therefore, is prohibited by law and enhances the market power of the producer

8950. When an oligopolist individually chooses its level of production to maximize its profits, it produces an output that is ?
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A. less than the level produced by a monopoly and more than the level produced by a competitive market

B. more than the level produced by either monopoly or a competitive market

C. less than the level produce by either monopoly or a competitive market

D. more than the level produced by a monopoly and less than the level produced by a competitive market