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
8951. Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero marginal cost of study production. If ABC publishing engages in tying the two products its best strategy is to charge a combined price of ?
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A. Rs 75

B. Rs 60

C. Rs 85

D. Rs 90

8952. In the kinked Demand Curve theory it is assumed that ?
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A. An increase in price by the firm is followed by others

B. A decrease in price by the firm is followed by others

C. Firms collude to fix the price

D. An increase in price by the firm is not followed by others
8953. Suppose an oligopolist individually maximizes its profits. When calculating profits, if the output effect exceeds the price effect on the marginal unit of production, then the oligopolist ?
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A. is in a Nash equilibrium

B. Should produce more units

C. Should produce fewer units

D. has maximized profits.

E. should exit the industry.

8954. In a cartel member firms may be given a fixed amount to produce. This is called a ?
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A. Limit

B. Factor

C. Quotient

D. Quota
8955. In the Kinked demand curve theory ?
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A. non-price competition is likely

B. Demand is price inelastic

C. There is a kink in the marginal cost curve

D. Demand is price elastic

8956. A model of Game theory of oligopoly is known as the ?
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A. Jury Box

B. Monopoly Cell

C. Prisoners Dilemma

D. Jailhouses Sentences

8957. Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero-marginal cost of study production. If ABC publishing charges separate price for both products its best strategy is to charge price that when combined, total ?
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A. Rs 85

B. Rs 75

C. Rs 80

D. Rs 60

8958. The Kinked Demand curve theory assumes ?
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A. Firms cooperate

B. Firms act as part of cartel

C. Firms are not profit maximisers

D. Firms are competitive
8959. The market for hand tools (such as hammers and screwdrivers) is dominated by Draper Stanley, and Craftsman This market is best described as ?
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A. an oligopoly

B. monopolistically competitive

C. competitive

D. a monopoly

8960. If oligopolists engage in collusion and successfully from a cartel, the market outcome is ?
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A. the same as if it were served by competitive firms.

B. efficient because cooperation improves efficiency

C. the same as if it were served by a monopoly.

D. known as a Nash equilibrium

8961. When a oligopolist individually chooses its level of production to maximize its profits it charges a price that is ?
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A. less than the price charged by a monopoly and more than the price charged by a competitive market

B. more than the price charged by a monopoly and less then the price charged by a competitive market

C. more than the price charged by either monopoly or a competitive market

D. less than the price charged by either monopoly or a competitive market

8962. A market structure in which many firms sell products that are similar but not identical is known as ?
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A. perfect competition

B. monopoly

C. oligopoly

D. monopolistic competition
8963. In cartels ?
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A. Each individual firm profit maximizes

B. The industry as a whole is loss making

C. There is no need to police agreements

D. There may be an incentive to cheat
8964. Laws that make it illegal for firms to conspire to raise prices or reduce production are known as ?
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A. pro-competition laws

B. antimonopoly laws

C. antitrust laws

D. all of these answers

E. anti-collusion laws

8965. Firms in oligopoly are likely to ?
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A. Try to be a price maker

B. Invest heavily in branding

C. Act independently of other firms

D. Try to differentiate its products

8966. In a cartel ?
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A. Price wars are common

B. Firms collude

C. Firms use price to win market share from competitors

D. Firms compete against each other

8967. If a few firms dominate an industry the market is known as ?
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A. Duopoly

B. monopolistic competition

C. Oligopoly

D. Competitively monopolistic

8968. As the number of sellers in an oligopoly increases ?
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A. output in the market tends to fall because each firm must cut back on production

B. The price in the market moves closer to marginal cost

C. collusion is more likely to occur because a larger number of firms can place pressure on any firm that defects

D. the price in the market moves further from marginal cost

8969. As the number of sellers in an oligopoly grows larger, an oligopolistic market looks more like ?
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A. a collusion solution

B. monopoly

C. monopolistic competition

D. a competitive market
8970. The agro based industry is ?
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A. Woodwork

B. Dairy farms

C. Iron work

D. Carpets

8971. Space Satellite Badr II was launched on December 10, 2001 when Pakistan launched Pak Sat I ?
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A. 25-Dec-02

B. 15-Feb-03

C. January 25, 2003

D. 29-Dec-02

8972. Which Pakistani city is famous for high quality sports equipment ?
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A. Sialkot

B. Lahore

C. Gujranwala

D. Chiniot

8973. When did Pakistan Meteorological Department Successfully experimented artificial rainfall in Thar (Sindh) ?
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A. 13-Jul-00

B. 15-Sep-01

C. August 3, 2000

D. 15-Aug-00

8974. The ratio of Industrial progress in the country is ?
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A. 8.6%

B. 6.20%

C. 5.40%

D. 4.30%

8975. Sialkot is also famous for Saddles & ?
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A. agriculture machinery

B. harvesters

C. musical instruments

D. paper manufacturing

8976. During the fiscal year 2009-10 gross fixed capital formation or domestic investment grew by ?
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A. 9.20%

B. 19.80%

C. 11.50%

D. 10.3%
8977. Surgical instruments are made in ?
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A. Sialkot

B. Wazirabad

C. Lahore

D. Gujranwala

8978. The Wah is famous for ?
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A. Ordnance factory

B. Mughal Garden

C. Both of them

D. None of them

8979. Which of the following is Cottage Industry ?
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A. Cement

B. Textile

C. Handicraft

D. Sugar

8980. The biggest Industry of Pakistan is ?
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A. Sugar

B. Textile

C. cement

D. Paper

8981. Industry is the second largest sector of the economy. How much of GDP it accounts for ?
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A. 19.70%

B. 16.50%

C. 20.50%

D. 18.2%
8982. In the year 2010-11 what was per capita income ?
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A. $945

B. $975

C. $ 1095

D. $905

8983. Heavy Mechanical Complex Taxila was set up with the aid of ?
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A. UK

B. Japan

C. USA

D. China
8984. Which city is famous for the textile mills that produce finest worsted suiting in the world ?
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A. Haripur

B. Faisalabad

C. Karachi

D. Lawrencepur

8985. The Chiniot city is known for its ornate brickwork and ?
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A. laquer work

B. fire work

C. wooden work

D. None of them

8986. Mianwali is important for ?
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A. irrigation work

B. Embroidery work

C. wood work

D. agriculture

8987. When did Pakistan launched its first space satellite Badr I largely designed and fabricated by SUPARCO ?
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A. July 16, 1990

B. 10-Aug-91

C. 16-Oct-89

D. 12-Sep-92

8988. The first nuclear power plant was set up in Karachi in ?
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A. 1973

B. 1971

C. 1972

D. 1970

8989. The biggest Industrial unit in public sector is ?
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A. Telephone Industry of Pakistan

B. Pakistan Steel Mili

C. Karachi Shipyard

D. State Cement

8990. The Faisalabad is also known as ?
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A. Little California

B. Little Oxford

C. Little England

D. Little Manchester
8991. In perfect competition ?
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A. Products are heavily differentiated

B. The products firm offer is very similar

C. Consumer have limited information

D. A few firms dominate the market

8992. Which of the following market would most closely satisfy the requirements for a competitive market ?
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A. All of these answers represent competitive markets

B. milk

C. electricity

D. cola

E. cable television

8993. For perfect competition to work there must be ?
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A. many buyers and sellers

B. perfect information

C. a standard product

D. free entry and exit

E. all of the above
8994. In the long run in perfect competition ?
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A. The price equals total cost

B. Firms are productively efficient

C. Firms are allocatively inefficient

D. The price equals the total revenue

8995. Which of the following is not a characteristic of a competitive market ?
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A. The goods offered for sale are largely the same.

B. All of these answers are characteristic of a competitive market

C. The are many buyers and sellers in the market

D. Firms can freely enter or exit the market

E. Firms generate small but positive economic profits in the long run
8996. The firms long run output decision will be where ?
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A. marginal cost equals output

B. marginal revenue equals long run marginal cost

C. marginal revenue equals output

D. long run average cost is lowest

8997. Decrease returns to scale means that _____ as ______?
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A. Short run marginal cost rises, output rises

B. long run marginal cost rises, output rises

C. long run average cost rises, output rises

D. Short run average cost rises, output rises

8998. In monopolistic competition ?
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A. There are barriers to entry to prevent entry

B. Firms make normal profits in the long run

C. All products are homogeneous

D. Firms face a perfectly elastic demand curve

8999. Firms in perfect competition face a?
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A. perfectly inelastic supply curve

B. perfectly elastic supply curve

C. perfectly elastic demand curve

D. perfectly inelastic demand curve

9000. For a perfectly competitive firm ?
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A. price equals total cost

B. price equals total revenue

C. price is greater than marginal revenue

D. Price equals marginal revenue