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
1301. According of Keynes, the level of employment is determined by ?
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A. the level of aggregate demand for goods and services

B. price and wages

C. the behaviour of trade unions.

D. the quantity of money

1302. The Common Agricultural Policy of the European Union has ?
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A. lowered the price of American farm exports to the EU

B. not affected the price of American farm exports to the EU

C. increase American farm exports to the EU

D. decrease American farm exports to the EU
1303. Which of the following is an example of moral hazard ?
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A. After Gull buys fire insurance, he begins to smoke cigarettes in bed.

B. All of these answers demonstrate moral hazard

C. Mahmood has been feeling poorly lately so he seeks health insurance

D. None of these answers demonstrate moral hazard

1304. If tastes are identical between countries, then comparative advantage is determined by ?
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A. demand conditions only

B. supply condition only

C. supply and demand conditions

D. cant tell without more information

1305. The density of population in K.P.K is ?
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A. 270 per sq. Km

B. 196 per sq. Km

C. 235 per sq. Km

D. 291 per sq. Km

1306. A graph showing all the combinations capital and labor available for a given total cost is the ?
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A. isocost line.

B. isoquant

C. budget constraint

D. expenditure set

1307. Which of the following reduces risk in a portfolio the greatest ?
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A. Increasing the number of shares from 20 to 30

B. All of these answers provide the same amount of risk reduction

C. Increasing the number of shares from 10 to 20

D. Increasing the number of shares in the portfolio from 1 to 10
1308. Which level of economic integration best applies to the U.S economy ?
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A. monetary union

B. common market

C. customs union

D. free trade area

1309. The kinked demand curve model of oligopoly assumes the elasticity of demand ?
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A. in response to a price increases is more elastic than the elasticity of demand in response to a price decrease

B. is constant regardless of whether price increase of decrease.

C. in response to a price increase is less elastic than the elasticity of demand in response to a price decrease

D. is perfectly elastic if price increases and perfectly inelastic if price decreases

1310. The implementation of a common market involves all of the following except ?
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A. a common tax system and monetary union

B. a common tariff levied in imports from nonmembers

C. prohibition to restriction on factor movements

D. elimination of trade restrictions among member countries

1311. In 2000, China and India constituted about _________ of the worlds population?
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A. 0.10%

B. 40%

C. 80%

D. 10%

1312. The burden of a tax falls more heavily on the buyers in a market when ?
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A. both supply and demand are inelastic

B. demand is elastic, and supply are inelastic

C. both supply and demand are elastic

D. demand is inelastic, and supply is elastic
1313. If the efficient markets hypothesis is true, then ?
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A. All of these answers

B. the stock market is informationally efficient so share prices should follow a random walk

C. shares tend to be overvalued

D. fundamental analysis is a valuable tool for increasing ones returns from investing in shares

1314. Wassily Leontiefs results can be interpreted as ?
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A. evidence against the Heckscher-Ohl in model

B. support for the Ricardian model

C. evidence against the Ricardi an model

D. support for the Heckcher Ohlin model

1315. What is the share of population between 15 to 60 years of age in total population ?
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A. 45%

B. 48%

C. 55%

D. 50%
1316. Which of the following is a correct statement about the relationship between average product (AP) and marginal product (MP) ?
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A. If AP = MP, then total product is at a maximum.

B. If AP exceeds MP then AP is falling

C. If TP is declining, then AP is negative

D. If AP is at a maximum, then MP is also,

1317. When several countries jointly impose common external tariffs, eliminate tariffs on each other, and eliminate barriers to the movement of labor and capital among themselves, they have formed a/na ?
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A. economic union

B. common market

C. customs union

D. free trade area

1318. Suppose that tomatoes from Mexico face a 20 percent tariff in the United States and a 25 percent tariff in Canada. If the United States and Canada maintain free trade between each other, the these two countries belong to a ?
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A. free-trade area

B. customs union

C. common market

D. monetary union

1319. An industry that has a relatively small number of firms that dominate the market is called ?
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A. a merged industry

B. a colluding industry

C. a natural monopoly

D. a concentrated industry
1320. If the demand for money depends on the interest rate the velocity of circulation is ?
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A. not constant and the quantity theory of money does not hold.

B. not constant and the quantity theory of money does hold.

C. constant and the quantity theory of money does not hold.

D. constant and the quantity theory of money does hold.

1321. Which of the following is a form of urban bais ?
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A. Spending more for education training housing, health and transport in urban areas than in rural areas.

B. Government may set price floors on food and price ceilings for industrial goods

C. #NAME?

D. Tax incentive and subsidies to infant industry

1322. New classical theories were an attempt to explain ?
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A. how unemployment could have persisted for so long during the Great Depression

B. the stagflation of the 1970s

C. Why policy changes that are perceived as permanent have more of an impact on a persons behaviour than policy changes that are viewed as temporary.

D. The increase in the growth rate of real output in the 1950s

1323. Simons model is consistent with ?
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A. low fertility and mortality

B. a laissez-faire population policy

C. a constant returns to scale production function

D. population self-sufficiency and constant economic growth

1324. The most important factors of production are ?
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A. management finance and marketing

B. money, stocks and bonds.

C. labor, land, and capital

D. water, earth and knowledge

1325. Which of the following is not true about most farmers in LDCs ?
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A. labor is underutilized except for planting and harvesting seasons

B. cultivators farm only as much land as their

C. The staple crop is the chief sources of food

D. On the traditional farm, output is always greater than consumption

1326. Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will _________ and the total output produced will __________?
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A. increase; decrease

B. decrease; decrease

C. increase; increase

D. decrease; increase
1327. The ______ is the ratio of the non-working population (under 15-year-old and over 64 years old) to the working-age population ?
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A. dependency ratio

B. per capita population ratio

C. labor force participation rate

D. None of these

1328. By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ?
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A. The volume of trade to be less than when there are no transportation costs

B. The gains from trade to be greater than when there are no transportation costs

C. specialization to stop when the production costs of the trading partners equalize

D. The prices of trade goods to be lower than when there are no transportation costs

1329. The long-run equilibrium outcomes in monopolistic competition and perfect competition are similar because in both market structures ?
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A. firms will only earn a normal profit

B. firms will be producing at minimum average cost

C. firms realize all economies of scale

D. the efficient output level will be produced in the long run

1330. Throughout most of humankinds existence, population grew at a rate of ________ per year?
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A. 0.50%

B. 0.002%

C. 10%

D. 2%

1331. That the division of labor is limited by the size of the market best applies to which explanation of trade ?
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A. Factor endowment theory

B. Overlapping demand theory

C. Product life cycle theory

D. Economies of scale theory
1332. The surplus caused by a binding price floor will be greatest if ?
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A. demand is inelastic and supply in elastic

B. supply is inelastic, and demand is elastic

C. both supply and demand are elastic

D. both supply and demand are inelastic

1333. In contestable markets, large oligopolistic firms, end up behaving like ?
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A. a monopoly

B. a cartel

C. perfectly competitive firms

D. monopolistically competitive firms.
1334. A tax placed on a good that is a necessity for consumers will likely generate a tax burden that ?
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A. falls more heavily on sellers

B. falls more heavily on buyers.

C. is evenly distributed between buyers and sellers.

D. falls entirely on sellers

1335. Which side of the market is more likely to lobby government for a price floor ?
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A. the buyers

B. Neither buyers nor sellers desire a price floor.

C. the sellers

D. Both buyers and sellers desire a price floor.

1336. Which of the following should cause the price of a share of stock to rise ?
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A. A reduction in aggregate risk

B. An increase in expected dividends

C. All of these answers

D. A reduction in the interest rate

E. None of these answers

1337. Which of the following workers would be most likely to find it more difficult to get a job after a rise in the minimum wage rate?
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A. A manual worker with fifteen years of work experience

B. a teenage worker with few qualifications.

C. A professional worker with university degree.

D. All there are equally likely to find it difficult to get a job

1338. Pakistan placed in the world population-wise on _________ number?
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A. 11th

B. 6th

C. 8th

D. 10th

1339. Which of the following is not true about the specialized farm ?
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A. Such a farm is labor intensive

B. Such a farm usually emphasizes

C. Such a farm is the most advanced

D. Such a farm uses advanced technology and takes advantage of economies of scale.

1340. Marginal revenue is ?
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A. the difference between total revenue and total cost

B. the additional profit the firms earns when it sells an additional unit of output

C. the added revenue that a firm takes in when it increases output by one additional unit.

D. The ratio of total revenue to quantity.

1341. The goal of integrated pest management (IPT) is to?
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A. encompass biological control through fertilizers

B. have year-round plantings of a single crop

C. undertake monoculture pest planning

D. reduce yield losses by pests while minimizing the negative effects of pest control
1342. Which of the following colonial policy contribute further to todays agricultural underdevelopment in Africa ?
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A. Colonial governments compelled farmers to grow selected crops

B. Research and development concentrated on food production and small farmers and herders.

C. . Colonialists failed to train African agricultural scientists and managers

D. Colonialism often changed traditional land tenure systems from individual control to communal

1343. To adjust GDP from market prices to factor cost ?
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A. Add indirect taxes

B. Deduct indirect taxes and add subsidies

C. Subtract subsidies

D. Deduct indirect taxes and subsidies

1344. UK GDP would exclude which of the following ?
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A. A new art gallery purchased by the city of Newcastle

B. Copper purchased by tap manufacturer Bristan

C. The purchase of a new Nissan produced in Sunderland

D. Lawyer services purchased by a home buyer

E. Lawn care services purchased by a home owner.

1345. Compared to the case of perfect competition, a monopolist is more likely to ?
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A. all of the above

B. produce a lower quantity of the product

C. make a greater amount of economic profit

D. charge a higher price

1346. In a cartel ?
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A. Firms collude

B. Price wars are common

C. Firms compete against each other

D. Firms use price to win market share from competitors

1347. When an oligopolist individually chooses its level of production to maximize its profits, it produces an output that is ?
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A. less than the level produce by either monopoly or a competitive market

B. more than the level produced by either monopoly or a competitive market

C. less than the level produced by a monopoly and more than the level produced by a competitive market

D. more than the level produced by a monopoly and less than the level produced by a competitive market
1348. The equilibrium level of aggregate output is determined in ?
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A. the goods market

B. the money markets

C. the goods and labor markets.

D. the money and labor market

1349. Using government regulations to force a natural monopoly to charge a price equal to his marginal cost will ?
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A. attract additional firms to enter the market

B. Cause the monopolist to exit the market

C. improve efficieny

D. raise the price of good

1350. The first census in Pakistan was held in ?
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A. 1951

B. 1948

C. 1961

D. 1959