economics MCQs – Page 253

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 Review each marked answer and report any item that may be outdated or unclear.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

5041. Which of the following describes an increase in technological knowledge ?
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A. A farmer sends his child to agricultural college and the child returns to work on the farm

B. A farmer buys another tractor

C. A farmer hires another day laborer

D. A farmer discovers that it is better to plant in the spring rather than in the fall

5042. Which of the following best describes the rate of growth in productivity in the United states over the last fifty years ?
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A. Productivity growth has been steady over the last 50 years

B. Productivity grew slowly from the 1950s through the 1970s and then began to accelerate probably due to advances in computer technology

C. Productivity has been growing more slowly every decade since world War II

D. Productivity grew quickly in the 1950s and 1960s more slowly from the early 1970s through 1995 and then quickly again

5043. The opportunity cost of growth is ?
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A. a reduction in current saving

B. a reduction in current investment

C. a reduction in taxes

D. a reduction in current consumption

5044. When a national has very little GDP per person ?
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A. an increase in capital will likely have little impact on output

B. it has the potential to grow relatively quickly due to the catch-up-effect

C. It must be a small nation.

D. it is doomed to being relatively poor forever

E. none of these answers

5045. Which of the following government policies is least likely to increase likely to increase growth in Africa ?
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A. eliminate civil war

B. All of these answers would increase growth

C. increase expenditure on public education

D. increase restrictions on the importing of American tractors and electronics

5046. Which of the following statements is true ?
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A. Countries all have the same growth rate and level of output because any country can obtain the same factors of production

B. Countries have great variance in both the level and growth rate of GDP/person thus poor countries can become relatively rich over time

C. Countries may have different level of GDP/person but they all grow at the same reate

D. Countries may have a different growth rate but they all have the same level of GDP/person

5047. If in Pakistan real GDP/person in 2004 is Rs18,073 and real GDP/person is 2005 is Rs18,635 What is the growth rate of real output per person over this period ?
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A. 3.0 percent

B. 18.0 percent

C. 18.6 percent

D. 3.1 percent

5048. Once a country is wealthy ?
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A. none of these answers

B. capital becomes more productive due to the catch-up- effect

C. it may be harder for it to grow quickly because of the diminishing returns to capital

D. it no longer needs any human capital

5049. Thomas Malthus argued that ?
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A. an ever-increasing population is constrained only by the food supply resulting in chronic faminies

B. none of these answers

C. labor is the only true factor of production

D. technological progress will continuously generate improvement in productivity and living standards.

5050. Which of the following statements regarding the impact of population growth on productivity is true ?
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A. There is no evidence, yet that rapid population growth stretches natural resources to the point that it limits growth in productivity

B. All of these answers

C. Rapid population growth may dilute the capital stock lowering productivity

D. Rapid population growth may promote technological progress increasing productivity.

5051. A reasonable measure of the standard of living in a country is ?
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A. Real GDP

B. nominal GDP per person.

C. The growth rate of nominal GDP per person

D. real GDP per person

5052. Which of the following expenditures to enhance productivity is most likely to emit a positive externality ?
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A. Naila pays her university tuition fees.

B. OGDC leases a new oil field

C. Indus Motors buys a new drill press

D. Megabank buys a new computer

5053. Which of the following is an example of foreign portfolio investment ?
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A. Toyota builds a new plant in the north of England

B. JCB builds a new plant near Manchester

C. EDF of France buys shares in Scottish & Southern Energy of the UK, and Scottish & Southern Energy uses the Proceeds to build a new hydro-electric power station in Scotland

D. Deutsche Bank of Germany buys some new software from UK Supplier

5054. Our standards of living is most closely related to ?
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A. our supply of capital because everything of value is produced by machinery

B. our supply of natural resources because they limit production

C. our productivity because our income is equal to what we produce

D. how hard we work:

5055. If a production function exhibits constant returns to scale ?
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A. doubling all of the inputs doubles output

B. doubling all of the inputs more than doubles output due to the catch-up effect

C. doubling all of the inputs has absolutely no impact on output because output is constant

D. doubling all of the inputs less than doubles output due to diminishing returns

5056. For a given level of technology, we should expect an increase in productivity within a nation when there is an increase in each of the following except ?
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