economics MCQs – Page 23

Practise multiple-choice questions from economics for competitive examinations and subject revision. Review each marked answer and report any item that may be outdated or unclear.

economics Mcqs

1. the national economy 2. profit maximizing under perfect competition and monopoly 3. application of economics 4. the aggregate demand aggregate supply model 5. surplus 6. money interest rates and output 7. average and total cost 8. stabilization adjustment reform and privatization 9. risks and diversification efficient market hypothesis 10. the phillips curve 11. supply and demand 12. capital formation investment choice information technology and technical progress 13. aggregate supply unemployment and inflation 14. elasticity 15. comparative gdp 16. roots of modern macroeconomics 17. production factors 18. poverty malnutrition and income inequality 19. trade regulations and industrial policies 20. monetary union 21. exchange rate systems and currency crises 22. economic development in historical perspective 23. exchange rate determination 24. monopoly competition 25. the balance of payments 26. inflation productivity 27. macroeconomic issues and analysis 28. employment migration and urbanization 29. macroeconomic policy tools 30. supply side policies 31. exchange rate adjustments and the balance of 32. miscellaneous 33. taxation 34. trade policies for the developing nations 35. markets efficiency and the public interest 36. the external debt and financial crises 37. budget deficits and the trade balance 38. alternative theories of the firm 39. public goods 40. the meaning and measurement of economic development 41. characteristics and institutions of developing countries 42. agriculture irrigation system of pakistan 43. education health and human capital 44. economic problems of developing countries 45. theories of economic development 46. basic of economics 47. consumer theory vs real consumers 48. applied microeconomics 49. long term economic growth 50. externality internality 51. fiscal and monetary policy 52. prices wages taxes 53. balance of payments aid and foreign investment 54. international factor movements and multinational corporations 55. entrepreneurship organization and innovation 56. the international economy and globalization 57. population and development 58. non tariff trade barriers 59. foundations of modern trade theory 60. global economic development 61. market 62. rural poverty and agricultural transformation 63. regional trading arrangements 64. foreign exchange 65. introduction to economics 66. world economy miscellaneous 67. sources of comparative advantage 68. natural resources and the environment toward sustainable development 69. monopoly 70. asymmetric information 71. income inequality 72. labour market 73. tariffs 74. development planning and policy making the state and the market 75. oligopoly 76. industrial development 77. costs supply and perfect competition 78. human capital 79. monetary fiscal and incomes policy and inflation 80. stocks

441. Which of the following groups suffer the most from inflation ?
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A. Debtors

B. Creditors

C. Business class

D. None of these

442. Devaluation of currency helps to promote ?
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A. Saving

B. Imports at lower cost

C. National income

D. Exports

443. Percentage of total industry sales that a particular company controls is called ?
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A. Market share

B. Holding share

C. Lions share

D. Net share

444. The economics system planned economy is ?
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A. In which economists control production

B. In which production and distribution of wealth is under governments control

C. In which technocrats control production

D. In which government controls distribution

445. Which of the following is rate of interest the major international banks charge each other for borrowings ?
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A. New York Interbank Offered Rates (NIBOR)

B. international Interbank Offered Rates (IOBOR)

C. USA Interbank Offered Rate (UIBOR)

D. London Interbank Offered Rate (LIBOR)

446. Consumption spending does not include ?
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A. Households purchases of food

B. Households payment of rent for an apartment

C. Households purchase of stock in any XYZ corporation

D. Households purchase of a car

447. Which industrialization policy have developing countries used which places emphasis on the comparative advantage principle as a guide to resource allocation ?
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A. import promotion

B. export promotion

C. multilateral contracts

D. international commodity agreements

448. Capital Flight from a country is called ?
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A. removal of capital drain

B. removal of income

C. All of these

D. removal of individual and corporate investment

449. Which of the following is regarded as a factor of production ?
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A. Profit

B. Capital

C. Interest

D. None of these

450. Government borrows in the form of promissory note to repay the bearer after some fixed days from the date of issue. How is called such borrowing ?
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A. Treasury bill

B. Securities

C. Term bound

D. Bond

451. Who is a Lame Duck in a stock market ?
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A. A old investor

B. A new investor

C. None of the above

D. A member of the stock exchange who cannot meet his obligations

452. A tax which is paid by the person on whom the tax is incident is called a ?
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A. Rate

B. Local tax

C. Direct tax

D. Indirect tax

453. Government of Pakistan issues currency on the basis of__________________?
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A. Demand for money in the country

B. Tax collection

C. Availability of dollars in the country

D. Availability of gold in the country

454. An exchange arrangement was formed in 1979 that governs the currencies of European union member countries. What this arrangement called ?
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A. European Currency System (ECS)

B. Common Monetary System (CMS)

C. European Monetary Mechanism (EMM)

D. European Monetary Fund (EMF)

455. Pakistans fiscal years starts from?
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A. 1st April

B. 1st September

C. 1st July

D. 1st January

456. Which of the following strategies have developing countries not used to deal with the problem of unstable export markets ?
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A. tariff-rates quotas

B. multilateral contracts

C. production and export controls

D. buffer stock arrangements

457. In the context of equities What is called a firm with two divisions that may split into two companies and issue original shareholders two shares for every old share they have ?
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A. Family growth

B. Spreadsheet

C. Butterfly

D. Splinter

458. In the Px = export price index, Pm = import price index, Qx = export quantity index,and Qm = import quantity index. Developing countries tend to maintain that their commodity term of trade have declined over the long run suggesting that _________ has declined?
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A. Pm/Px

B. Px/Pm

C. (Px/Pm)Qx

D. (Pm/Px)Qm

459. What is called interest that is paid previously earned interest as well as on the principal ?
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A. Compound interest

B. Gross interest

C. Total interest

D. Simple interest

460. Antidumping duties applied to imported goods ?
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A. are abolished by the World Trade Organization

B. result in lower-priced goods for domestic consumers

C. are imposed by industrial countries but not developing countries

D. result in decreases in consumer surplus for domestic households

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