economics MCQs – Page 255

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 Review each marked answer and report any item that may be outdated or unclear.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
5081. If a factor exhibits diminishing marginal product, hiring additional units of the factor will ?
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A. increase the marginal product of the factor

B. cause a reduction is output

C. generate ever smaller amounts of output

D. have no effect on output

5082. An individual firms demand for a factor of production ?
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A. is perfectly elastic (horizontal) if the factor market is perfectly competitive

B. Slopes downward because an increase in the production of output reduces the price at which the output can be sold in a competitive market, thereby reducing the value of the marginal producing the value of the marginal product as more of the factor is use

C. Slopes downward due to the factors diminishing marginal product

D. slopes upward due to the factors increasing marginal product

5083. A decrease in the supply of farm tractors will cause all but which of the following ?
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A. an increase in the rental rate for tractor

B. a decrease in the rental rate of farmland

C. a decrease in the value of the marginal product of tractors

D. an increase in the wage of farm workers
5084. An increase in the demand for apples will cause all but which of the following ?
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A. an increase in the price of apples

B. an increase in the wage of apple pickers

C. an increase in the value of the marginal product of apple pickers

D. a decrease in the number of apple pickers employed
5085. For a competitive profit-maximizing firm, the value-of-the-marginal-product curve for capital is the firms ?
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A. supply curve of capital

B. production function

C. demand curve for capital

D. marginal cost curve

5086. An increase in the price of automobiles shifts the demand for autoworkers to the ?
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A. left and increases the wage

B. right and decreases the wage

C. right and increases the wage

D. left and decreases the wage

5087. An increase in the demand for a firms output ?
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A. decrease the prosperity of the firm but increases the prosperity of the factors hired by the firm

B. decreases the prosperity of both the firms and the factors hired by the firm.

C. increases the prosperity of both the firm and the factors hired by the firm.

D. increases the prosperity of the firm but decreases the prosperity of the factors hired by the firm.

5088. The most important factors of production are ?
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A. labor, land, and capital

B. management finance and marketing

C. water, earth and knowledge

D. money, stocks and bonds.

5089. Which of the following is not true with regard to workers who have a high value of marginal product? These workers ?
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A. have skills that are in relatively scarce supply

B. are usually highly paid

C. usually have little capital with which to work

D. produce output for which there is great demand

5090. When capital is owned by the firm as opposed to being directly owned by household capital income may take any of the following forms except ?
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A. retained earnings

B. dividends

C. interest

D. increases in stocks of goods
5091. Suppose that a war is fought will biological weapons. The weapons destroy people but not capital. What is likely to happen to equilibrium wages and rental rates after the war when compared to their values before the war ?
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A. Wages rise, and rental rates fall

B. Wages fall, and rental rates fall

C. Wages fall, and rental rates rise

D. Wages rise, and rental rates rise

5092. A decrease in the demand or fish ?
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A. increase the value of the marginal product of fishermen increase their wage and decreases employment in the fishing industry

B. decrease the value of the marginal product of fishermen reduces their wage, and reduces employment in the fishing industry

C. decrease the value of the marginal product of fishermen, reduces their wage, and increases employment in the fishing industry

D. increase the value of the marginal product of fishermen increase their wage, and increase employment in the fishing industry.

5093. The value of the marginal product of labor is ?
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A. the price of the output times the marginal product of labor

B. the wage of labor times the marginal product of labor

C. the price of the output times wage of labor

D. none of these answers

E. the wage of labor times the quantity of labor

5094. If both input and output markets are competitive and firms are profit maximizing, then in equilibrium each factor of production earns ?
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A. the value of its marginal product

B. an amount equal to the price of output times total output

C. the amount allocated by the political process

D. an equal share of output

5095. A value of 1 in Gini index represents ?
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A. 1% inequality

B. maximum inequality

C. 10/10 000% inequality

D. low inequality

5096. _________ is below the income that secures the bare essentials of food clothing and shelter ?
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A. purchasing power poverty

B. sens poverty index

C. Absolute poverty

D. Income inequality

5097. The Lorenz curve shows ?
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A. income concentration relative to a 45-degree line

B. the poorests income shares fall in the early stages of growth

C. patterns of poverty between developed and developing countries

D. the change in GDP per capita over time

5098. Indices of income distribution measure ?
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A. absolute poverty

B. standard of living

C. relative poverty

D. economic growth

5099. Peer borrowing groups of five or so people with joit liability approve loans to other members as a substitute for the banks screening process The above statement applies to ?
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A. Bangladeshs Grameen Bank

B. the Enterprice credit program in Kolkata

C. the Association for Development of Microenterprice

D. Indonesias Badan Kredit Kecamatan (BKK)

5100. The elasticity of propoor growth is ?
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A. the percentage increase in the poverty of the poor divided by percentage increase in the poverty of the nonpoor

B. the percentage increase in the consumption growth of the poor divided by percentage increase in the consumption growth of the nonpoor

C. the percentage increase in the poor times percentage increase in the nonpoor

D. the percentage increase in the poor people in the Urban divided by percentage increase in the nonpoor in the urban