economics MCQs – Page 264

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 Review each marked answer and report any item that may be outdated or unclear.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

5261. If there is an increase in the price of apples which causes consumers to purchase fewer kilograms of apples and more kilograms of oranges, the CPI will suffer from ?
0

A. bias due to the introduction of new goods.

B. bias due to unmeasured quality change

C. none of these answers

D. substitution bias

E. base year bias

5262. The Phillips curve shows the relationship between inflation and what ?
0

A. The rate of price increase

B. Unemployment

C. The rate of growth in an economy

D. The balance of trade

5263. Menu costs in relation to inflation refers to ?
0

A. Costs of money increasing its value

B. Costs of revaluing the currency

C. Costs of altering price lists

D. Costs of finding better rates of return

5264. If the nominal interest rate is 7 percent and the inflation rate is 3 percent, then the real interest rate is ?
0

A. 4 percent

B. 3 percent

C. 10 percent

D. -4 percent

E. 21 percent

5265. If borrowers and lenders agree on a nominal interest rate and inflation turns out to be less than they had expected ?
0

A. neither borrowers nor lenders will gain because the nominal interest rate has been fixed by contract

B. lenders will gain at the expense of borrowers

C. None of these answers

D. borrowers will gain at the expense of lenders

5266. If workers and firms agree on an increase in wages based on their expectations of inflation and inflation turns out to be more than they expected ?
0

A. none of these answers

B. firms will gain at the expense of workers.

C. Workers will gain at the expense of firms

D. neither workers nor firms will gain because the increase in wages in fixed in the labor agreement

5267. Inflation can be measured by all of the following except the ?
0

A. Producer price index

B. finished goods price index

C. GDP deflector

D. consumer price index

E. All of these answers are used to measure inflation.

5268. Which of the following would probably cause the CPI to rise more than the GDP deflator in the Pakistan ?
0

A. An increase in the price of BMWs produced in Germany and sold in the Pakistan

B. An increase in the price of helicopters purchased by the Pak Navy.

C. An increase in the price of Peugeots produced in the Pakistan

D. An increased in the Price of domestically produced armoured vehicles sold exclusively to Iran

5269. If inflation is 8 percent and the real interest rate is 3 percent, then the nominal interest rate must be ?
0

A. 5 percent

B. 11 percent

C. 3/8 percent

D. 24 percent

5270. Under Which of the following conditions would you prefer to be the borrower ?
0

A. The nominal rate of interest is 5 percent and the inflation rate is 1 percent

B. The nominal rate of interest is 15 percent and the inflation rate is 14 percent

C. The nominal rate of interest is 12 percent and the inflation rate is 9 percent

D. The nominal rate of interest is 20 percent and the inflation rate is 25 percent

5271. An increase in injections into the economy may lead to ?
0

A. An outward shift of aggregate supply and demand-pull inflation

B. An outward shift of aggregate demand- and demand-pull inflation

C. An outward shift of aggregate supply and cost push inflation

D. An outward shift of aggregate demand and cost push inflation

5272. In 1989, the CPI was 124.0 in 1990, it was 130.7 What was the rate of inflation over this period ?
0

A. 30.7 percent

B. You cant tell without knowing the base year

C. 5.4 percent

D. 5.1 percent

5273. Under which of the following conditions would you prefer to be the lender ?
0

A. The nominal rate of interest is 15 percent and the inflation rate is 14 percent

B. The nominal rate of interest is 20 percent and the inflation rate is 25 percent

C. The nominal rate of interest is 5 percent and the inflation rate are 1 percent

D. The nominal rate of interest is 12 percent and the inflation rate is 9 percent

5274. The effect of inflation on the price competitiveness of a countrys products may be offset by ?
0

A. Lower inflation abroad

B. A revaluation of the currency

C. A depreciation of the currency

D. An appreciation of the currency

5275. An increase in costs will ?
0

A. Reduce the natural rate of unemployment

B. Increase the productivity of employees

C. Shift aggregate supply

D. Shift aggregate demand

5276. Suppose your income rises from Rs19,000 to Rs31,000 while the CPI rises from 122 to 169 Your standard of living has likely ?
0

A. risen

B. You cant tell without knowing the base year

C. stayed the same

D. fallen

5277. The basket on which the CPI is based is composed of ?
0

A. total current production

B. Products purchased by the typical consumer

C. consumer production

D. raw materials purchased by firms

E. none of these answers

5278. Refer to Figure 24-1 What is the value of the basket in the base year ?
0

A. Rs418.75

B. Rs300

C. Rs459.25

D. None of these

5279. According to the Phillips curve unemployment will return to the natural rate when ?
0

A. Nominal wages are equal to expected wages

B. Nominal wages are growing faster than inflation

C. Real wages are back at equilibrium level

D. Inflation is higher than the growth of nominal wages

5280. Inflation ?
0

A. Reduce the cost of living

B. Reduce the price of products

C. Reduce the purchasing power of a rupee

D. Reduce the standard of living

Previous Next

Showing 5261 to 5280 of 9118 mcqs