economics MCQs – Page 244

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 Review each marked answer and report any item that may be outdated or unclear.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
4861. A decrease the Price of foreign oil ?
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A. Shifts the short run Phillips curve upward and makes the Unemployment inflation trade off more favorable

B. Shifts the short-run Phillips curve downward and make the unemployment inflation trade-off less favorable

C. Shifts the short run Phillips curve downward and makes the unemployment inflation trade off more favorable

D. Shifts the short run Phillips curve upward and makes the unemployment inflation trade-off more favorable

4862. Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. An unexpected monetary contraction will move the economy in the direction of point ?
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A. E

B. F

C. c

D. H

4863. The original Phillips curve illustrates ?
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A. The trade-off between output and unemployment

B. The positive relationship between output and unemployment

C. the trade-off between inflation and unemployment

D. The positive relationship between inflation and unemployment

4864. Refer to Exhibit 6.Suppose the economy is in long-run equilibrium at point E. A sudden increase in government spending should move the economy in the direction of point ?
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A. b

B. G

C. d

D. E

4865. If a countrys policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-run result would be ?
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A. an increase in the level of output

B. an increase in the rate of inflation

C. All of these answers

D. a decrease in the unemployment rate

4866. Which of the following would shift the long-run Phillips curve to the right ?
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A. An increase in the minimum wage

B. An increase in the price of foreign oil

C. An increase in the expected inflation

D. An increase in the aggregate demand

4867. Along a short-run Phillips curve, ?
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A. a higher rate of growth in output is associated with a higher unemployment rate.

B. a higher rate of inflation is associated with a higher unemployment rate

C. a higher rate of growth in output is associated with a lower unemployment rate

D. a higher rate of inflation is associated with a lower unemployment rate
4868. If the sacrifice ratio is five, a reduction in inflation from 7 percent to 3 percent would require ?
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A. a reduction in output of 20 percent

B. a reduction in output of 5percent

C. a reduction in output of 35 percent

D. a reduction in output of 15 percent

4869. Refer to Exhibit 6.If People in the economy expect inflation to be 6 percent but inflation turn out to be 3 percent the economy is operating at point ?
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A. c

B. F

C. H

D. d

4870. The misery index Which some commentators suggest measures the health of the economy, is ?
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A. The sum of the growth rate of output and the inflation rate

B. The sum of the natural rate of unemployment and the actual rate of unemployment

C. The sum of the inflation rate and the central banks refinancing rate

D. The sum of the unemployment rate and the inflation rate
4871. When actual inflation exceeds expected inflation ?
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A. People will reduce their expectations of inflation in the future

B. Unemployment is less than the natural rate of unemployment

C. Unemployment is equal to the natural rate of unemployment

D. Unemployment is greater than the natural rate of unemployment

4872. The Phillips curve is an extension of the model of aggregate supply and aggregate demand because, in the short run, an increase in aggregate demand increase price and ?
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A. decrease growth

B. increases unemployment

C. decreases unemployment

D. decreases inflation

4873. Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. In the long run a monetary contraction will move the economy in the direction of point ?
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A. I

B. F

C. H

D. a

4874. The natural rate hypothesis argues that ?
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A. in the long run the unemployment rate returns to the natural rate, regardless of inflation

B. Unemployment is always below the natural rate

C. Unemployment is always equal to the natural rate

D. Unemployment is always above the natural rate

4875. If, in the long run, people adjust their price expectations so that all prices and incomes move proportionately to an increase in the price level then the long-run Phillips curve ?
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A. has a slope that is determined by how fast people adjust their price expectations

B. is positively sloped

C. is vertical

D. is negatively sloped

4876. An increase in expected inflation ?
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A. Shifts the Short run Phillips curve upward and the unemployment inflation trade-off is less favorable

B. shifts the short run Phillips curve downward and the unemployment inflation trade-off is less favorable.

C. Shift the short-run Phillips curve downward and the unemployment inflation trade-off is more favorable

D. shifts the short-run Phillips curve upward and the unemployment inflation trade-off is more favorable

4877. An increase in income should ?
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A. shift demand for an inferior product inward

B. Shift supply for an inferior product inward

C. Shift demand for an inferior product outward

D. shift supply for an inferior product outward

4878. Adding up the quantities demanded of a good by different people facing the same price gives us the ?
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A. Demand curve

B. Market demand curve

C. Supply curve

D. Market supply curve

4879. A measurement showing how quantity demanded varies with income is the ?
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A. income elasticity of demand

B. budget elasticity of demand

C. Cross-price elasticity of demand

D. Price elasticity of demand

4880. Economics assumes that people consume goods and services to achieve ?
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A. Status

B. Self-esteem

C. Utility

D. Prestige