economics MCQs – Page 247

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 Review each marked answer and report any item that may be outdated or unclear.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

4921. Marginal revenue is the ________ when output is __________?
0

A. Change in total revenue, increase by one unit

B. change in total revenue increased

C. change in average revenue, increased by one unit

D. Change in average revenue, increased

4922. If demand is __________ then price cuts will _________ spending?
0

A. elastic, decrease

B. elastic; increase

C. none of the above

D. inelastic; increase

4923. An increase in aggregate demand will have most effect on prices if ?
0

A. Aggregate supply is price inelastic

B. Aggregate supply has a unitary price elasticity

C. Aggregate demand is price inelastic

D. Aggregate supply is price elastic

4924. The price elasticity of demand measures ?
0

A. a change in price

B. How far a demand curve shifts

C. a change in quantity demanded

D. The responsiveness of quantity demanded to a change in price

4925. A fall in price ?
0

A. Will cause an outward shift of supply

B. Leads to a higher level of production

C. Will cause an inward shift of demand

D. May be caused by a fall in demand

4926. If your income doubles and the prices of the goods you buy double then your demand for these goods will likely?
0

A. not change

B. shift

C. decrease

D. increase

4927. Positive cross elasticities suggest that goods are ____ and negative cross-elasticities that goods are ?
0

A. normal, inferior

B. substitutes complements

C. substitutes inferior

D. normal, complements

4928. For a normal good ?
0

A. The price elasticity of demand is positive the income elasticity of demand is negative

B. The price elasticity of demand is negative the income elasticity of demand is negative

C. The price elasticity of demand is positive; the income elasticity of demand is positive

D. The price elasticity of demand is negative the income elasticity of demand is positive

4929. The increase in total cost when one more unit is produced is known as ?
0

A. marginal cost

B. limited cost

C. opportunity cost

D. average cost

4930. The price elasticity of demand is a negative number this means ?
0

A. An increase in income will reduce the quantity demanded

B. Demand is price inelastic

C. Demand is price elastic

D. The demand curve is downward sloping

4931. An increase in price all other things unchanged leads to ?
0

A. Shift demand inwards

B. A contractions of demand

C. Shift demand outwards

D. An extension of demand

4932. Profits are maximized when ?
0

A. average cost is less than average revenue

B. marginal cost equals marginal revenue

C. revenue is maximized

D. costs are minimized

4933. According to the law of diminishing utility ?
0

A. Increasing units of consumption increase the marginal utility

B. Utility is at a maximum with the first unit

C. Total utility will rise at a falling rate as more units are consumed

D. Marginal product will fall as more units are consumed

4934. The price elasticity of demand is the ?
0

A. ratio of the percentage change in quantity demanded to the percentage change in price.

B. ratio of the change in price to the change in quantity demanded.

C. ratio of the change in quantity demanded to the change in price.

D. ratio of the percentage change in price to the percentage change in quantity demanded.

4935. Average income increase from Rs20,000 p.a to Rs 22,000 p.a Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ?
0

A. Income elasticity is -2

B. The good is inferior

C. The product is normal

D. Demand is price inelastic

4936. The income elasticity is +2 and income increases by 20% sales were 5000 units, what will they be now ?
0

A. 7000

B. 5500

C. 3000

D. 4500

4937. If a product is a vablen good ?
0

A. Demand is directly related to price

B. Demand is inversely related to price

C. Demand is inversely related to income

D. Demand is inversely related to the price of substitutes

4938. An increase in price all other things unchanged leads to ?
0

A. A contraction of supply

B. A shift in supply inwards

C. A shift in supply outwards

D. An extension of supply

4939. An increase in the price of a complement for product A would ?
0

A. Shift supply for product A inwards

B. Shift demand for product A inwards

C. Shift demand for Product A outwards

D. Shift supply for product A outwards

4940. Demand for a normal product may shift outwards if ?
0

A. Price decreases

B. income falls

C. The price of a substitute falls

D. The price of a complement rises

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