economics MCQs – Page 30

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 Review each marked answer and report any item that may be outdated or unclear.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
581. What is called a check that is returned by a bank because it is not payable, usually because of insufficient funds ?
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A. Bounce

B. Grossed

C. Refused

D. Return

582. Term a countrys decision to tie the value of its currency to another countrys currency gold or a basket of currencies ?
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A. Fixed exchange rate

B. Relative exchange rate

C. Knotted exchange rate

D. Pagged exchanged rate

583. What is called an internet strategy of dealing directly with business rather than consumer ?
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A. Step by step

B. Indirect contact

C. B2B

D. Trickle down

584. Which of the following can be used for check inflation temporarily ?
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A. None of these

B. increase in wages

C. Decrease in money supply

D. Decrease in tax
585. Unlike a black market, what is called a system of secretly selling or trading commodities which is not necessarily illegal ?
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A. Open market

B. White market

C. Grey market

D. Red market

586. What is called a countrys total financial obligations to the rest of the world ?
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A. National liabilities

B. Debt burden

C. Total debt

D. External debt
587. Which of the following is a price that is equal to the face value of a security ?
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A. At Equilibrium

B. None of them

C. Balanced

D. At Par
588. What does mean by Emerging Markets ?
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A. Financial markets of developing economies

B. Financial markets of Asian economies

C. Financial markets of East Europes economies

D. Financial markets of Latin America

589. What is called when a private company first offers shares to the public market and investors ?
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A. Coming public

B. Public offering

C. Public floating

D. going public
590. The argument that U.S current account deficits cause net job losses for Americans ?
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A. focuses only on the overall economy and is thus always true

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 true by definition in all possible circumstances

D. is supported by recent U.S history

591. The policy cartel on debt reduction refers to the_______________?
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A. None of the above

B. World Bank requiring LDCs seconded by a DC to get loan reduction

C. loan denial to crisis-stricken highly indebted countries

D. screening of debtors based on their regional location

592. Adam Smith advocated ?
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A. #NAME?

B. laissez faire

C. competitive markets

D. the invisible hand

593. Which of the following statements is True ?
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A. A country runs a current account surplus if it sells more of its assets abroad than it buys abroad

B. A country runs a capital account deficit if it imports more than it exports

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

D. If the current account is in surplus the capital account must be in deficit
594. Fundamentalists want the IMF to lend to crisis-stricken countries on condition that they undertake fundamental structural reforms in banking Joseph Stiglitz however thinks it is______________?
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A. impractical for the IMF to loan short term as reforms can only be effective in the middle to long run

B. None of the statements above is correct

C. crucial that the IMF intervene in the reform of fiscal policy of the country and not the monetary policy

D. unrealistic for IMF to intervene in the financial markets of poor countries during the crisis

595. If the sacrifice ratio is five, a reduction in inflation from 7 percent to 3 percent would require ?
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A. a reduction in output of 5percent

B. a reduction in output of 15 percent

C. a reduction in output of 20 percent

D. a reduction in output of 35 percent

596. The movement to free international trade is most likely to generate short-term unemployment in which industries ?
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A. Industries that sell to domestic and foreign buyers

B. Industries in which there are neither imports nor exports

C. Imports competing industries

D. Industries that sell to only foreign buyers

597. An index of prices of all domestically produced goods in the economy is the ?
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A. Producer price index (PPI)

B. GDP deflator

C. Consumer price index (CPI)

D. wholesale price index (WPI)

598. Real GNP measures income ?
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A. including externalities

B. including non-market activities

C. adjusted for inflation

D. including tax evasion

599. A demand switching policy could be ?
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A. Tariffs

B. Higher income tax

C. Reduced government spending

D. Higher interest rates

600. A significant portion of actual world trade patterns results from ?
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A. The industrial policies of governments

B. different factor endowment between countries

C. the different tastes and preferences of people in different countries

D. different sizes of the countries