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
9001. In perfect competition ?
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A. A few firms dominate the industry

B. Firms are price makers

C. There are many buyers and sellers

D. There are many buyers but few sellers

9002. A grocery store should close at night if the ?
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A. total costs of staying open are greater than the total revenue due to staying open

B. total costs of staying open are less than the total revenue due to staying open

C. variable costs of staying open are less than the total revenue due to staying open.

D. variable costs of staying open are greater than the total revenue due to staying open
9003. If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost the firm could increase profit if it ?
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A. maintained production at the current level

B. increased production

C. decreased production

D. temporarily shut down.

9004. In a competitive industry each buyer and seller ?
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A. Producer different products

B. is a price taker

C. Believes that can influence price

D. Prevents the entry of competitors

9005. A production is technique is technically efficient if ?
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A. there is no way to make a given output using less of one input and no more of the other inputs

B. inputs are minimized

C. output is maximized

D. Costs are minimized

9006. Holding all factors constant except one and increasing a variable factor is expected to lead to steadily decreased marginal product of that factor, this is an example of ?
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A. decreasing returns to scale

B. The law of diminishing returns

C. an inefficient production technique

D. constant returns to scale

9007. The long-run market supply curve ?
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A. is always perfectly elastic

B. is always more elastic than the short-run market supply curve.

C. is always less elastic than the short-run market supply curve

D. has the same elasticity as the short run market supply curve

9008. If an input necessary for production is in limited supply so that an expansion of the industry raises costs for all existing firms in the market, then the long-run market supply curve for a good could be ?
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A. downward sloping

B. upward sloping

C. perfectly elastic

D. perfectly inelastic

9009. Which of the following is not one of the four Ps in marketing ?
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A. Product

B. Price

C. Place

D. Presence

9010. A competitive firm produces a level of output at which ?
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A. None of the above

B. price equals marginal cost

C. Price is greater than marginal cost

D. price is less than marginal cost

9011. In the short run a firm will produce zero output if ?
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A. price is between short run average total cost and short run average variable cost

B. price is less than short run average variable cost

C. profit is zero

D. price is greater than short run average total cost

9012. In the long run in perfect competition ?
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A. Total revenue = Total variable cost

B. price = average cost = marginal cost

C. price = average cost = total cost

D. price = marginal cost = total cost

9013. When average cost is falling marginal cost is ________ and when average cost is rising marginal cost is?
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A. less than average cost, less than average cost

B. greater than average cost, greater than average cost

C. less than average cost, greater than average cost

D. greater than average cost, less than average cost

9014. If a firm takes over a competitor then, according to porters 5 forces model ?
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A. Supplier power is higher

B. Buyer power is higher

C. Rivalry is lower

D. Substitute threat is higher

9015. In the short run firms in perfect competition will still produce provided ?
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A. The price covers variable cost

B. The price covers average fixed cost

C. The price covers average variable cost

D. The price covers fixed costs

9016. If a competitive firm doubles its output its total revenue ?
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A. more than double

B. cannot be determined because the price of the good may rise or fall

C. doubles.

D. less than doubles.

9017. In marketing USP stands for ?
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A. Unique Selling Proposition

B. Under Sales Procedure

C. Unit Sales Point

D. Underlying Sales Proposition

9018. A profit maximizing firm is perfect competition produces where ?
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A. Total revenue is maximized

B. Marginal revenue equals zero

C. Marginal revenue equals marginal cost

D. Marginal revenue equals average cost

9019. In perfect competition ?
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A. Short run abnormal profits are competed away by the government

B. Short run abnormal profits are competed away by greater advertising

C. Short run abnormal profits are competed away by firms entering the industry

D. Short run abnormal profits are completed away by firms leaving the industry

9020. In the long-run some firms will exit the market if the price of the good offered for sale is less than ?
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A. average total cost

B. marginal cost

C. average revenue

D. marginal revenue

9021. in long-run equilibrium in a competitive market, firms are operating at ?
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A. zero economic profit

B. their efficient scale

C. intersection of marginal cost and marginal revenue

D. all of these answers are correct

E. the minimum of their average-total-cost curves

9022. The competitive firm maximize profit when it produces output up to the point where ?
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A. price equals average variable cost

B. marginal cost equals total revenue

C. marginal cost equals marginal revenue

D. marginal revenue equals average revenue

9023. For a competitive firm, marginal revenue is ?
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A. average revenue divided by the quantity sold

B. equal to the quantity of the good sold

C. equal to the price of the good sold

D. total revenue divided by the quantity sold

9024. In the long run, the competitive firms supply curve is the ?
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A. portion of the marginal cost curve that lies above the average variable cost curve.

B. upward-sloping portion of the average total cost curve

C. upward-sloping portion of the average variable cost curve

D. entire marginal cost curve

E. portion of the marginal cost curve that lies above the average total cost curve
9025. In perfect competition ?
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A. the price equals the average variable cost

B. The price equals the marginal revenue

C. the price equals the total cost

D. the fixed cost equals the variable costs

9026. In the short run, the competitive firms supply curve is the portion of the marginal cost curve that lies above the average variable cost curve?
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A. upward-sloping portion of the average variable cost curve

B. Upward-sloping portion of the average total cost curve

C. portion of the marginal-cost curve that lies above the average variable cost curve

D. entire marginal cost curve.

E. portion of the marginal cost curve that lies above the average total cost curve.

9027. A competitive firm demand curve is ?
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A. vertical

B. elastic

C. downward sloping

D. Horizontal
9028. In monopolistic competition ?
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A. Marginal revenue = price

B. Demand is perfectly elastic

C. The marginal revenue is below the demand curve and diverges

D. Products are homogeneous

9029. If a firm is not operating at the output necessary to achieve all scale economies, it has not achieved its ?
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A. Minimum efficient scale

B. Maximum efficient scale

C. Efficient scale

D. Average efficient scale

9030. In monopolistic competition firms profit maximize where ?
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A. Marginal revenue = Average cost

B. Marginal revenue = Total cost

C. Marginal revenue = Marginal cost

D. Marginal revenue = Average revenue

9031. In monopolistic competition of firms are making abnormal profit other firms will enter and ?
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A. The average cost will shift downwards

B. The average variable cost will increase

C. the demand curve will shift inwards

D. The marginal cost will shift outwards
9032. In Porters five force model conditions are more favorable for firms within an industry if ?
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A. Buyer power is high

B. Entry threat is low

C. Substitute threat is high

D. Supplier power is high

9033. If a long run average cost curve is falling form left to right this is an example of ?
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A. constant returns to scale

B. increasing returns to scale

C. decreasing returns to scale

D. the minimum efficient scale

9034. The short run marginal cost curve cuts the short run total cost curve and short run average variable cost curve ?
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A. At their lowest points

B. When they are increasing

C. When they are declining

D. When marginal revenue is zero

9035. If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?
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A. perfectly elastic

B. upward sloping

C. perfectly inelastic

D. downward sloping

9036. For a competitive firm, its short run supply curve is ______ and its long run supply curve is _____?
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A. SMC below SAVC, LMC bellow LAC

B. SMC below SAVC, LMC above LAC

C. SMC, LMC

D. SMC above SAVC, LMC above LAC
9037. Effective branding will tend to make ?
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A. Supply more price inelastic

B. Demand more income elastic

C. Demand more price inelastic

D. Supply more income elastic
9038. If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause ?
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A. an increase the price of the good and an increase in the number of firms in the market

B. no impact on either the price of the good or the number of firms in the market

C. an increase in the number of firms in the market but no increase in the price of the good

D. an increase the price of the good but no increase in the number of firms in the market

9039. In monopolistic competition ?
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A. There are few buyers

B. There is one seller

C. There are few sellers

D. There are many sellers

9040. Short run average total costs are equals to the sum of ____ and _____?
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A. Short run variable costs, profit

B. Short run average variable costs, profit

C. Short run average variable costs, profit run average fixed costs

D. Short run opportunity costs, profit

9041. By restricting labor supply a trade union can _____ and _______?
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A. increase the wage, lower employment

B. maintain the wage, lower employment

C. increase the wage, increase employment

D. maintain the wage, increase employment

9042. Which of the following is not a reason why some workers are paid above the equilibrium wage ?
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A. efficiency wages

B. unions

C. beauty

D. minimum-wage laws

9043. The marginal revenue product of capital is the ?
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A. change in companys share price

B. change in a companys balance sheet when it acquires new plant

C. additional value of output from using more capital

D. changing value of the capital stock

9044. Which of the following statements regarding discrimination is true ?
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A. The existence of a wage differential among groups is strong evidence of discrimination in the labour market

B. Discrimination can only persist in a competitive labour market it customers are willing to pay to maintain the discriminatory practice or the government requires discrimination

C. Bigoted employers are the main source of a persistent discriminatory wage differential in a competitive market

D. Discrimination cannot exist in a competitive labor market

9045. If a person who works in coal mine gets paid more than a person with a similar background and skills who works in a safer job, then ?
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A. coal miners must have greater human capital than others

B. we have observed a compensating differential

C. coal miners must be more attractive than other workers

D. we have evidence of discrimination against workers outside the coal mine

9046. Which of the following is not part of a workers human capital ?
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A. all of these answers are parts of a workers human capital

B. education

C. experience

D. on the job training

E. effort
9047. Efficiency wages are ____ that raise _____?
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A. high wages, productivity

B. high wages, employment

C. high wages, labor supply

D. low wages, employment

9048. All of the following would tend to increase a workers wage except ?
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A. doing a job that is fun

B. Working the night shift

C. working harder

D. having a greater amount of natural ability

E. more education

9049. If workers get a real wage increase this will likely ____ and _____?
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A. encourage the use of less capital, reduce demand for all inputs

B. encourage the use of less capital reduce demand for all inputs

C. encourage the use of more capital increase demand for all inputs

D. encourage the use of more capital in the long run, reduce demand for all inputs

9050. A profit-maximizing firm will hire labour until _____ equals the _______?
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A. long run marginal revenue, long run marginal cost

B. labor output ratio, capital output ratio

C. marginal revenue, marginal cost

D. marginal cost of labor, marginal revenue product