economics MCQs – Page 230

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 Review each marked answer and report any item that may be outdated or unclear.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 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
4581. The length of a business cycle would be measured from ?
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A. peak to trough

B. the slump to the expansion

C. peak to peak

D. trough to peak

4582. The multiplier is calculated as___________?
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A. 1/MPC

B. 1(1-MPC)

C. a or b

D. 1/MPS

4583. When investment is assumed to autonomous the slope of the AD schedule is determined by the ?
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A. marginal propensity to consume

B. disposable incomes

C. average propensity to consume

D. marginal propensity to invest

4584. The diagram that shows the income received and payments made by each sector of the economy is the ?
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A. income-expenditures diagram

B. income-price diagram

C. circular flow diagram

D. aggregate demand-aggregate supply diagram

4585. Macroeconomic theory that emphasized the theories of Keynes and de-emphasized the classical theory developed as the result of the failure of ?
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A. economic theory to explain the simultaneous increases in inflation and unemployment during the 1970s

B. The classical model to explain the prolonged existence of high unemployment during the Great Depression

C. fine tuning during the 1960s

D. the economy to grow at a rapid rate during the 1950s

4586. Short-run equilibrium output means that aggregate demand __________ actual output?
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A. is less than

B. fluctuates around

C. is greater than

D. equals
4587. In an Open economy leakage to imports ____________ the value of the multiplier ?
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A. None of the above

B. increase

C. reduce

D. do not change

4588. Aggregate supply is the total amount ?
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A. of goods and services produced in an economy

B. produced by the government

C. of labor supplied by all households

D. of products produced by a given industry

4589. For given government spending and taxation the government budget deficit will grow in _________ and decline in __________?
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A. recessions, booms

B. booms, booms

C. booms, recessions

D. recession, recession

4590. In an economy measuring (1) total value added (2)total spending on final goods and (3)total factor earning gives the result that ?
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A. 3<2<1

B. any measure can be larger or smaller than any other

C. 3>2>1

D. 3=2=1
4591. The underground economy consists of ?
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A. the water distribution system

B. part of the rail network

C. legal transactions

D. legal transactions not declared for tax and illegal activities
4592. Starting from a balanced budget, for a given tax rate, an increasing in income will cause the government budget to ?
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A. remain unchanged

B. move into deficit

C. move into surplus

D. None of the above above

4593. When we refer to the hidden economy we mean unrecorded income owing to ?
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A. the lags between statistical collection and publication

B. poor statistics

C. tax evasion

D. smuggling

4594. Real GNP is a crude measure of national welfare because it excludes ?
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A. consumption

B. exports

C. work in the home

D. investment

4595. The index used most often to measure inflation is the?
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A. consumer price index

B. wholesale price index (WPI)

C. GDP deflator

D. Producer price index (PPI)

4596. Equilibrium in the circular flow of income occurs when ?
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A. There is a Bank Holiday

B. None of these

C. Injections withdrawals

D. Injections = withdrawals
4597. If desired spending in the economy exceeds income we would expect ?
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A. households to save more

B. the MPC to change

C. firms to produce more

D. firms to produce less

4598. Total injection are made up of?
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A. savings + government expenditure + exports

B. investment + tax + exports

C. investment + government expenditure + imports

D. investment + government expenditure + exports
4599. Purchasing power parity exchange rates are used to ?
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A. convert nominal GDP to real GDP

B. pay wages b multinational companies

C. compare living standards of different countries

D. estimate the costs of economic growth

4600. In the circular flow we would expect leakages to ___________ injections?
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A. be greater than

B. be less or greater than

C. equal

D. be less than