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
1101. In contestable markets large oligopolistic firms end up behaving like ?
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A. monopolistically competitive firms

B. a monopoly.

C. a cartel

D. perfectly competitive firms

1102. Under the EUs Common Agricultural Policy, a variable import levy equals the ?
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A. amount by which the world price exceeds the EUs support price

B. amount the which the EUs support price exceeds the world price

C. world price

D. support price of the EU

1103. In the long run ?
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A. there are no fixed factors of production

B. a firm can shut down, but it cannot exit the industry

C. a firm can vary all inputs, but it cannot change the mix of inputs it uses.

D. all firms must make economic profits.

1104. In monopolistic competition firms achieve some degree of market power ?
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A. by virtue of size alone

B. because of barriers to entry into the industry

C. because of barriers to exit from the industry

D. by producing differentiated products
1105. Which scholar argues the following Plantations have no significant advantage over peasants [for] crops for which centralized processing and marketing are not necessary Cocoa and coconuts are typical examples of a lack of large scale economies Peasants can grow and process these crops in small lots with no large capital requirement beyond small indigenous tools and facilities ?
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A. Tim Dyson

B. Hans Singer

C. Raanan Weitz

D. Yujiro Hayami
1106. _________ is below the income that secures the bare essentials of food clothing and shelter ?
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A. purchasing power poverty

B. Income inequality

C. Absolute poverty

D. sens poverty index

1107. Which trade theory contends that a country that initially develops and exports a new product may eventually become an importer of it and may no longer manufacture the product ?
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A. Theory of factor endowments

B. Product life cycle theory

C. Economies of scale theory

D. Theory of overlapping demands

1108. A period of rapid population growth between a preindustrial stable population characterized by high birth and death rates and a later modern, stable population marked by low fertility and mortality is known as ?
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A. population maturity

B. demographic transition

C. birth-death transformation

D. demobilizing population

1109. Share prices will follow a random walk if ?
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A. shares are undervalued

B. markets reflect all available information in a rational way

C. shares are overvalued

D. people behave irrationally when choosing shares

1110. Indices of income distribution measure ?
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A. relative poverty

B. standard of living

C. absolute poverty

D. economic growth

1111. Keynesian economics became popular because it was able to explain ?
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A. The prolonged existence of high unemployment during the Great depression

B. demand-pull inflation in the 1960s

C. low growth rates in the 1950s

D. stagflation in the late 1970s

1112. _____ 1954 study of U.S trade patterns showed that U.S exports were labor-intensive compared with U.S imports, even though the United States was widely regarded as a relatively capital-abundant nation ?
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A. Wolfgang Stolphers

B. Paul Samuelsons

C. Staffan Linders

D. Wassily Leontiefs
1113. Dynamic comparative advantage theory ?
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A. cannot explain strategic competition between firms such as Boeing and Airbus

B. helps explain why some nations use industrial policy to support potentially competitive new firms

C. Is another name for Ricardos comparative advantage theory?

D. None of the above

1114. Which of the following is not a major factor raising LDC agricultural labor productivity ?
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A. new technical and organizational knowledge from greater specialization

B. new biological chemical mechanical inputs in production

C. massive government intervention

D. expanded markets for agricultural output

1115. Which of the following statements best describes the outcome under monopolistic competition ?
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A. In monopolistic competition there are too few firms and each firm produce a slightly different product at scale that is greater than optimal

B. In monopolistic competition there are too many firms and each firm produce a slightly different product at the optimal scale

C. In monopolistic competition, there are too many firms and each firm produce a slightly different product at a scale that is less than optimal

D. in monopolistic competition there is the correct number of firm and each firm produces a slightly different product at an optimal scale.

1116. If two countries start with the same real GDP/person and one country grows at 2 percent while the other grows at 4 percent ?
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A. one country will always have 2 percent more real GDP/person than the other

B. Next year the country growing at 4 percent will have twice the GDP/person as the country growing at 2 percent

C. the standard of living in the country growing at 4 percent will start to accelerate away from the slower growing country due to compound growth

D. the standard of living in the two countries will converge

1117. Which statement is False ?
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A. Fixed costs do not depend on the firms level of output

B. Fixed costs are zero if the firms is producing nothing.

C. There are no fixed costs in the long run

D. Fixed costs are the difference between total costs and total variable costs

1118. Which of the following statement about rural and agricultural development is true ?
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A. The agrarian community requires a full range of services such as schools merchants banks and so on

B. Chinas rural population receives little income from nonfarm income

C. Household nonfarm income is uncorrelated to farm productivity and uncorrelated to farm productivity and household incomes in Kenya

D. Rural development is the same as agricultural development

1119. Interindustry trade can be explained by all of the following except ?
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A. high per capita incomes in exporting countries

B. product differentiation for good such as automobiles

C. different growing seasons of the year for agricultural products

D. high transportation costs as a proportion of product value

1120. An increase in the demand for apples will cause all but which of the following ?
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A. an increase in the wage of apple pickers

B. an increase in the price of apples

C. an increase in the value of the marginal product of apple pickers

D. a decrease in the number of apple pickers employed
1121. Engineers for the All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases?
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A. marginal costs to increase

B. average costs to decrease

C. average costs to remain constant

D. average costs to increase

1122. Which is the second densely populated province of Pakistan ?
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A. Baluchistan

B. K.P.K

C. Punjab

D. Sindh
1123. Under the Common Agricultural Policy exports of any surplus quantities EU produce are encouraged through the usage of ?
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A. countertrade

B. variable levies

C. export subsidies

D. trigger prices

1124. The implementation of the European Union has ?
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A. made it easier for Americans to compete against the Germans in the British market

B. made it easier for Americans to compete against the Japanese in the British

C. made it harder for Americans to compete against the Japanese in the British market

D. made it harder for Americans of compete against the Germans in the British market
1125. Form societys point of view, society would be better off if a monopolist ?
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A. produced less and charged a higher price

B. produced less and charged a lower price.

C. produced more and charged a lower price

D. produced more and charged a higher price

1126. A group of firms that gets together to make price and output decisions is called ?
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A. price leadership

B. a cartel

C. an oligopoly.

D. a concentrated industry.

1127. Industrial policies intended to foster comparative advantage for domestic industries could result in the implementation of ?
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A. research and development subsidies

B. low interest rate loans

C. loan guarantees

D. All of the above
1128. Suppose that a war is fought will biological weapons. The weapons destroy people but not capital. What is likely to happen to equilibrium wages and rental rates after the war when compared to their values before the war ?
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A. Wages rise, and rental rates rise

B. Wages fall, and rental rates rise

C. Wages fall, and rental rates fall

D. Wages rise, and rental rates fall
1129. What was the crude death rate of 1998 ?
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A. 8.6 per 1000

B. 5.6 per 1000

C. 9.8 per 1000

D. 6.4 per 1000

1130. Suppose the equilibrium price for apartments is Rs500 per month and the government imposes rent controls of Rs250 Which of the following is unlikely to to occur as a result of the rent controls?
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A. there will be a storage of housing

B. Landlords may be offered bribes to rent apartments

C. Landlords may discriminate among apartment renters

D. There may be long lines of buyers waiting for apartments

E. the quality of apartments will improve
1131. A price floor ?
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A. sets a legal minimum on the price at which a good can be sold

B. is not a binding constraint if it is set above the equilibrium price

C. always determines the price at which a good must be sold

D. sets a legal maximum on the price at which a good can be sold

1132. When capital is owned by the firm as opposed to being directly owned by household capital income may take any of the following forms except ?
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A. retained earnings

B. increases in stocks of goods

C. interest

D. dividends

1133. The Heckscher-Ohl in model rules out the classical models basis for trade by assuming that _________ is (are) identical between countries?
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A. opportunity costs

B. technology

C. factor endowments

D. factor intensities

1134. What is the share of K.P.K in the total population of Pakistan ?
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A. 12.70%

B. 15.50%

C. 13.4%

D. 14.80%

1135. Within the supply and demand model, a tax collected from the sellers of a good shift the ?
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A. demand curve upward by the size of the tax per unit.

B. demand curve downward by the size of the tax per unit.

C. supply curve downward by the size of the tax per unit

D. supply curve upward by the size of the tax per unit
1136. For a competitive profit-maximizing firm, the value-of-the-marginal-product curve for capital is the firms ?
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A. production function

B. demand curve for capital

C. marginal cost curve

D. supply curve of capital

1137. The total fertility rate (TFR) is ?
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A. The number of children born to the average woman during her reproductive years.

B. The number of woman age 15-45 in a country divided by total population

C. The total number of children born in a country in given year a divided by labor force

D. The number of births in a country divided by total population in a given year.

1138. Suppose Handels Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be ?
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A. upward sloping to the right

B. Horizontal

C. U-shaped

D. downward sloping to the right

1139. When one firm in the breakfast cereal market started an advertising campaign that stressed the nutritional value of its cereals, all other cereal manufacturers started similar advertising campaign This suggests that the breakfast cereal market is ?
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A. indeterminate from this information

B. monopolistically competitive

C. perfectly competitive

D. oligopolistic
1140. For the United States empirical studies indicate that over the past two hundred years the cost of international transportation relative to the value of U.S imports has ?
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A. Any of the above

B. increased

C. Decreased

D. Not changed

1141. The product cycle theory of trade is essentially a ?
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A. zero-sum theory of trade

B. negative-sum theory of trade

C. static, short run trade theory

D. dynamic long run trade theory
1142. Which of the following is NOT true about children in a peasant society ?
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A. Boys as young as 8 years old tend or herd animals, weed pick and sell produce

B. The cost of education entertainment and travel is low

C. Major financial security is usually provided by sons

D. Children place more economic demands on a peasant family than an urban family
1143. Relative to a competitively organized industry a monopoly ?
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A. Produces less output, charges higher prices and earns economic profits.

B. produces more output, charges higher prices and earns economics profits

C. produces less output, charges lower prices and earns economic profits

D. Produces less output, charges lower prices and earns only a normal profit

1144. Which of the following is not an example of a global public good ?
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A. the campaign against river blindness

B. high-yielding varieties (HYVs) of grains

C. Polio and small-pox vaccinations.

D. the drilling of oil in the Arctic

1145. Which of the following statements best describes the outcome under monopolistic competition ?
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A. It is not efficient because too little output is produced but is efficient in that the output produced is produced at minimum average total cost.

B. It is not efficient because too little output is produced and the output that is produced is produced at a cost above minimum average total cost

C. It is efficient because the right amount of output is produced, but not efficient in that the output produced is produced at a cost above minimum average total cost

D. It is efficient because entry is free and economic profits are eliminated in the long run.

1146. According to the classical economists the economy ?
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A. is self-correcting.

B. can never deviate from full employment

C. requires fine tuning to reach full employment

D. will never be at full employment

1147. About _________ of the Worlds population lives in LDCs?
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A. 50%

B. 80%

C. 25%

D. 35%

1148. Diminishing marginal return implies ?
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A. decreasing average variable costs.

B. decreasing marginal costs.

C. increasing marginal costs.

D. decreasing average fixed costs.

1149. A set of alternative commodity bundles that a person can command in a society using the totality of rights and opportunities that he possesses is known as ?
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A. Production possibilities

B. egalitarianism

C. entitlement

D. income distribution

1150. Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? the monopolist has?
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A. equated marginal revenue and marginal cost

B. set price equal to its average cost

C. maximized its total revenue

D. maximized the difference between marginal revenue and marginal cost.