economics MCQs – Page 250

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 Review each marked answer and report any item that may be outdated or unclear.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

4981. Governments may contribute to inflationary pressure because of building up large ?
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A. expenditures

B. numbers of employees

C. welfare plans

D. budget deficits

4982. An advocate of the classical model of the economy would claim that unemployment is created when the ____ is above its equilibrium level in the ______?
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A. interest rate, market for loanable funds

B. wage rate, labor market

C. tax rate, government budget

D. price level, aggregate economy

4983. The AD schedule indicates that _______ inflation is associated with ________ output?
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A. lower, lower

B. zero, zero

C. higher, lower

D. higher, higher

4984. An unspoken agreement between workers and firms that the firm will not cut wages is known as ?
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A. a relative-wage contract

B. an implicit or social contract

C. employment at will

D. an explicit contract

4985. The costs of inflation are ?
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A. menu costs

B. uncertainly

C. income redistribution

D. shoe leather costs

E. all of the above

4986. Those who hold the classical view of the labor market are likely to believe that ?
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A. neither monetary nor fiscal policy will have an effect on output and employment

B. monetary but not fiscal policy will have an effect on output and employment

C. Fiscal, but not monetary policy will have an effect on output and employment

D. both monetary and fiscal policy will have an effect on output and employment

4987. The long-run Phillips curve is ____ at the ____?
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A. vertical natural rate of inflation

B. horizontal natural rate of unemployment

C. vertical equilibrium rate of unemployment

D. horizontal, natural rate of inflation

4988. The Phillips curve is a graph showing the relationship between ?
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A. the inflation rate and the level of aggregate demand

B. the price level and the unemployment rate

C. the inflation rate and the unemployment rate

D. the level of aggregate output and the price level

4989. Policies to reduce unemployment by reducing union power, tax cuts, reductions in unemployment benefit and investment subsidies are examples of ?
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A. Monetarist Policies

B. Classical policies

C. Supply-side policies

D. Keynesian policies

4990. In the long run, the Phillips curve will be vertical at the natural rate of unemployment if ?
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A. the long run aggregate demand curve is vertical at potential GDP

B. the long-run aggregate demand curve is horizontal at the natural rate of inflation

C. the long run aggregate demand curve is vertical at potential GDP

D. The long run supply curve is horizontal at the natural rate of inflation

4991. The abolition of income tax would probably ______ the number of workers in employment and _______ the equilibrium rate of unemployment?
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A. increase reduce

B. increase, increase

C. reduce, increase

D. reduce, reduce

4992. When economists use the term real business cycle theory they are suggesting that business cycles are caused by ?
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A. changes in export demand due to the state of the world economy

B. Shifts in aggregate supply

C. business expectations

D. business confidence

4993. Which school of economic thought suggested that one possible cause of inflation was a push from the cost side ?
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A. New classical economists

B. Monetarists

C. Marxists

D. Keynesian.

4994. We would normally expect the size of the labor force to be _____ than the number or workers willing to accepts job offers at any real wage rate ?
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A. Larger

B. the same size

C. Smaller

D. None of these

4995. If a person thinks they are better off after a 10% wage increase, and all prices have risen 10% then they are experiencing ?
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A. inflation illusion

B. crowding out

C. a supply shock

D. inflation

4996. At the intersection of AD and AS equilibrium is achieved in ?
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A. the goods market

B. the money markets

C. all of these

D. the labor markets

4997. Even though explicit contracts may lead to layoffs during recessions explicit contracts may still be efficient because such contracts ?
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A. will equitable spread the layoffs among junior and senior workers

B. minimize negotiation costs

C. minimize unemployment effects

D. guarantee that only the least productive workers will be laid off.

4998. Possible causes of involuntary unemployment are ?
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A. insider-outsider distinctions

B. trade

C. efficiency wages

D. all of the above

E. minimum wage agreements

F. scale economies

4999. All the following are types of monetary policy expect ?
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A. The pursuit of a target real interest rate

B. a balanced budget

C. a nominal money stock target

D. an inflation target

5000. The equilibrium rate of unemployment at any real wage, is the difference between ______ and ______?
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A. labor demand, labor supply

B. those willing to work at the going wage labor supply

C. those willing to work at the going wage labour demand

D. labour demand those willing to work at the going wage

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