economics MCQs – Page 259

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 Review each marked answer and report any item that may be outdated or unclear.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
5161. Koreas keirestsu-like corporate conglomerates is known as ?
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A. zaibatsu

B. laissez faire

C. bourgeoisie

D. chaebol
5162. On what did the Russian Soviet development model of growth not depend ?
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A. state monopolized trading

B. diverting savings from agriculture to industry

C. markets for allocating resources

D. state assisted entrepreneurs

5163. Why has the growth of the German and Japanese economies after World War|| not been repeated in LDCs ?
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A. real domestic currency depreciation exists

B. low interest rates

C. political instability inhibits world-wide investment

D. human capital or technical skills were lacking
5164. Perestroika in the former Soviet Union refers to ?
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A. economic restructuring by Gorbachev

B. intensified central planning

C. total market reliance for resource allocation

D. None of the above

5165. Based on the 2010 population survey four of the five most populous countries include ?
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A. China, India, Indonesia, and Brazil

B. Russia, Pakistan Bangladesh and Nigeria

C. China, Russia, Mexico, and Indonesia

D. Russia, China, India, and South Africa

5166. Which two countries have enjoyed a real per capita growth rate of more than 7% yearly since the 1960s ?
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A. Taiwan and South Korea

B. Sierra Leone and Nigeria

C. Canada and the United States

D. Ghana and Mexico

5167. Why has modern economic growth mainly been in western countries ?
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A. the rise of capitalism

B. an emphasis on trade restrictions

C. the use of the medieval economy

D. a strong Catholic church intervention in the economic decisions

5168. ASEAN refers to the ?
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A. Association of South East Asian Nations

B. Association of South East Argo Nations

C. Alliance of South Eastern African Nations

D. Alliance of South East Asian Neighbors

5169. The bourgeoisie refers to ?
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A. the monarchy

B. the aristocrats of wealthy nations

C. the capitalist and middle class

D. the central planners of the Soviet Union

5170. Keiretsu refers to ?
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A. financial cliques

B. horizontal manufacturing groups consisting of a core company and its partners

C. groups of affiliated companies loosely organized around a large bank

D. State-assisted entrepreneurs

5171. Two countries that still rely on the Soviet communist model of development are ?
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A. China and Hong Kong

B. Cuba and North Korea

C. Ghana and Nigeria

D. Poland and Germany

5172. Starting from a position where the nations money demand equals the money supply and its balance of payments is in equilibrium economic theory suggests that the nations balance of payments would move into a surplus position if there occurred in the nation a (an) ?
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A. increase in the money demand

B. decrease in the money demand

C. None of the above

D. increase in the money demand
5173. If the exchange rate between Swiss francs and British pounds is 5 francs per pound, then the number of pounds that can be obtained for 200 francs equals ?
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A. 60 pounds

B. 80 pounds

C. 40 pounds

D. 20 pounds

5174. Assume that the United States faces a percent inflation rate while no (zero) inflation exists in Japan. According to the purchasing power parity theory over the long run the dollar would be expected to ?
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A. e of the above

B. depreciate by 8 percent against the yen

C. appreciate by 8 percent against the yen

D. remain at its existing exchange rate

5175. The relationship between the exchange rate and the prices of tradable goods is known as the ?
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A. asset markets theory

B. purchasing power parity theory

C. monetary theory

D. balance of payments theory

5176. Relatively high real interest rates in the United States tend to ?
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A. decrease the foreign demand for dollars causing the dollar to depreciate

B. increase the foreign demand for dollars causing the dollar to appreciate

C. decrease the foreign demand for dollars causing the dollar to appreciate

D. increase the foreign demand for dollars causing the dollar to depreciate

5177. Due to Japans high saving rate, suppose that the Japanese invest abroad. This investment may result in a/an _______ of the Japanese yen and therefore a for Japan?
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A. appreciation; trade surplus

B. depreciation; trade surplus

C. depreciation; trade deficit

D. appreciation; trade deficit

5178. Under a system of floating exchange rates relatively high productivity and low inflation rates in the United States results in a (an) ?
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A. decrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar

B. decrease in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar

C. increase in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar

D. increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar

5179. For the United States suppose the annual interest rate on government securities equals 8 percent while the annual inflation rate equals 4 percent, For Switzerland the annual interest rate on government securities equal 10 percent while the annual inflation rate equals 7 percent the above variables would cause investment funds to flow from ?
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A. Switzerland to the United States causing the franc to appreciate

B. the United States to Switzerland causing the dollar to depreciate

C. Switzerland to the United States causing the franc to depreciate

D. the United States to Switzerland causing the dollar to appreciate

5180. A primary reason that explains the appreciation in the value of U.S dollar would be ?
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A. lack of investor confidence in U.S money policy

B. high inflation rates in the United States

C. high interest rates in the United States

D. large trade surpluses for the United States