economics MCQs – Page 262

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 Review each marked answer and report any item that may be outdated or unclear.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

5221. Which of the following is not a characteristic of a monopolistically competitive market ?
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A. differentiated products

B. long run economic profits

C. many sellers

D. free entry and exit

5222. Which of the following is true regarding the production and pricing decisions of monopolistically competitive firms? Monopolistically competitive firms choose the quantity at which marginal cost equals ?
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A. average total cost and then use the demand curve to determine the price consistent with this quantity

B. marginal revenue and then use the demand curve to determine the price consistent with this quantity

C. marginal revenue and then use the supply curve to determine the price consistent with this quantity

D. average total cost and then use the supply curve to determine the price consistent with this quantity

5223. Defenders of the use of brand names argue that brand names ?
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A. provide information about the quality of the product

B. all of these answers

C. are useful even in socialist economics such as the former Soviet Union

D. e firms incentive to maintain high quality

5224. The use of the word monopoly in the name of the market structure called monopolistic competition refers to the fact that ?
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A. monopolistically competitive markets have free entry and exit just like a monopolistic market

B. monopolistically competitive firms produce beyond their efficient scale and so do monopolists

C. monopolistically competitive firms charge prices equal to their marginal costs just like monopolists

D. a monopolistically competitive firms faces a downward-sloping demand curve for its differentiated product and so does a monopolist

5225. The role of _______ is to direct one nations savings into investments of another nation?
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A. merchandise trade flows

B. current account flows

C. capital flows

D. services flows

5226. Purchases of government securities in the United States by foreigners is ?
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A. a credit item in the capital account

B. a debit item in the current account

C. a credit item in the current account

D. a debit item in the capital account

5227. All of the following are debit items in the balance of payments except ?
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A. private gifts to foreigners

B. merchandise exports

C. capital outflows

D. foreign aid granted to other nations

5228. For the first time since World War I, in the mid-1980s the United States became a net international ?
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A. creditor

B. exporter

C. importer

D. debtor

5229. The balance of trade is a record of ?
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A. the current account plus capital account

B. exports and imports of financial assets

C. the value of merchandise exports minus imports

D. the net export of goods and services

5230. Which of the following statements is correct ?
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A. If the current accounts is in surplus then the capital account must also be in surplus

B. If the current account is in deficit then the capital account must also be in deficit

C. The overall sum of all entries in the balance of payments must be zero

D. The overall sum of all the entries in the balance of payments must be positive

5231. In balance of payments accounting tourism and travel are classified in the ?
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A. unilateral transfers account

B. capital account

C. merchandise trade account

D. services account

5232. _______ is needed to balancell the balance of payments statements?
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A. debit transactions

B. statistical discrepancy

C. credit transactions

D. unilateral transfers

5233. The argument that U.S current account deficits cause net job losses for Americans ?
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A. is true by definition in all possible circumstances

B. fails to recognize that a current account deficit is matched by an equal inflow of foreign funds which finances employment increasing investment spending

C. is supported by recent U.S history

D. focuses only on the overall economy and is thus always true

5234. In the balance of payments travels and tourism are included in the category of ?
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A. unilateral transfers

B. merchandise account

C. services account

D. capital account

5235. A current account surplus implies that ?
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A. the country is a net lender to the rest of the world

B. the country is running a net capital account surplus

C. All of the above

D. foreign investment in domestic securities is at very low levels