economics MCQs – Page 269

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 Review each marked answer and report any item that may be outdated or unclear.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
5361. Which of the following is not TRUE about rural urban migration ?
comments icon0

A. The urban share of total LDC population grew from 27 percent in 1975 and 35 percent in 1992 to 40 percent in 2003

B. Migration to the cities is a larger contributor than natural population growth to urban labor growth is sub Saharan Africa

C. In Latin America natural population increase is the major source of urban growth

D. From 1975 to 2000 the number of cities in LDC with populations over 1 million increased from 20 to 50

5362. Entrepreneurship is the ?
comments icon0

A. residual of a production function

B. technique to manage raw materials efficiently

C. blueprint on how to manage the labor force

D. resource coordinating other productive resources
5363. During the Great Depression workers in DCs who took inferior jobs as a result of being laid off were known as ?
comments icon0

A. voluntarily unemployed

B. seasonally unemployed

C. cyclical unemployed

D. disguised unemployed
5364. Policies to reduce factor price distortion include?
comments icon0

A. #NAME?

B. Encouraging small-scale industry

C. Setting market-clearing exchange rates

D. Decreasing subsidies to capital investors

5365. The unemployment rate is the ?
comments icon0

A. unemployed divided by employed

B. total employment divided by population

C. employed plus unemployed divided by labor force

D. labor force divided by population

5366. Which of the following is not capita good ?
comments icon0

A. inventories

B. consumers goods

C. buildings

D. plant and equipment

5367. A production function ?
comments icon0
A. depicts the relationship between input and output

B. shows the dependency output of the working population

C. is a function of natural resources in a country

D. states the relationship between products and income distribution

5368. According to Harris and Todaro, creating urban jobs by expanding industrial output ?
comments icon0

A. induces government to increase minimum wages

B. is insufficient for solving the urban unemployment problem

C. will generate more government revenue through urban wages

D. will generate capital-intensive technologies
5369. The invisibly underemployed ?
comments icon0
A. result from an inadequate use of workers capacities

B. are workers who are compelled to work short hours

C. are part-time workers who voluntarily work short hours

D. None of the above is correct

5370. The theoretical basis for zero marginal productivity of labor was the concept of ?
comments icon0

A. marginal rate of substitution

B. labor force literacy

C. substitution of leisure and work among labor

D. limited technical sustainability of factors
5371. The simplest explanation based on Lewiss model for rural-urban migration is ?
comments icon0
A. a higher expected income in urban areas

B. better infrastructure in urban areas

C. the availability of labor-intensive jobs in urban areas

D. That people migrate when urban wages exceed rural wages

5372. In a production function Y = F(L, K,N,E,T) Y is ?
comments icon0
A. national product

B. capital

C. natural resources

D. prevailing technology

5373. The openly unemployed in LDCs are usually from all of the following except ?
comments icon0
A. from the poorest 1/5 of the population

B. persons 15 to 24 years old

C. the educated

D. residents of urban areas

5374. Labor skills are a major component of ?
comments icon0

A. morbidity

B. mortality

C. fertility

D. population quality
5375. Based on Nafziger and Auvinens study high unemployment rates ?
comments icon0

A. represent a vast underutilization of human resources

B. are associated with middle age rural uneducated males

C. #NAME?

D. are potential source of social unrest and political discontent

5376. Which of the following is not TRUE about unemployed in LDCs ?
comments icon0

A. Unemployment in rural areas is twice that of urban areas

B. World-wide there are fewer unemployed females than males, but the rate is higher for women

C. The unemployment rate for youths is twice that of people over 24

D. The unemployed are relatively well educated

5377. Disguised unemployed is?
comments icon0

A. the rigid factor proportions in LDC agriculture and industry

B. when marginal revenue productivity of labor is zero

C. the same as seasonal unemployment of LDC agricultural

D. due to capital formation and the level of technology remaining constant.

5378. The Keynesian remedy for unemployment is to ?
comments icon0

A. decrease aggregate demand

B. reduce tax rates or lower interest rates

C. decrease private consumption and investment

D. decrease government spending

5379. Which of the following is an automatic stabilizer ?
comments icon0
A. Unemployment benefits

B. spending on the space shuttle

C. Spending on public schools

D. Military spending

E. All of these answers are automatic stabilizers

5380. The initial effect of an increase in the money supply is to ?
comments icon0
A. increase the price level

B. decrease the interest rate

C. increase the interest rate

D. decrease the price level