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
1451. When economies speak of the demand for money which of the following are they asking ?
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A. What proportion of your financial assets do you want to hold in non-interest-bearing forms

B. How much wealth would you like?

C. How much income would you like to earn?

D. How much cash do you wish you could have?

1452. Which of the following country has 25 percent of the worlds estimated oil reserves and the lowest cost production as well as a dominant role in OPEC pricing ?
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A. Russia

B. Iraq

C. Saudi Arabia

D. Venezuela

1453. Gross Domestic Product can be measured as the sum of ?
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A. consumption investment government purchases and net exports

B. Net National Product Gross National Product, and Disposable personal income

C. final goods and services intermediate goods, transfer payments, and rent

D. investment wages profits and intermediate production

E. consumption transfer payments. wages and profits.

1454. The fifth Census was held in ?
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A. 1988

B. 1998

C. 2000

D. 1978

1455. Biodiversity ?
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A. refers to biological effects on commercial plantation

B. refers to diversifying earths nonrenewable resource

C. includes genetic species ecosystem and functional diversities

D. refers to reconstruction of tropical rainforests

1456. Progress that meets the needs of the present without compromising the ability of future generations to meet their own needs is ?
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A. sustainable development

B. net primary productivity (NPP)

C. the impossibility theorem

D. the tragedy of commons

1457. What type of trade barrier was used to protect U.S auto firms from foreign competition during 1981 1984 ?
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A. domestic subsidies granted by the U.S government

B. import quotas imposed by the U.S government

C. export tariffs imposed by the Japaneses government

D. export quotas imposed by the Japanese government
1458. If imports licenses are auctioned off to domestic importers in competitive market their scarcity value (revenue effect) accrues to ?
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A. foreign workers

B. domestic corporations

C. The domestic government

D. foreign corporations

1459. A monopolist maximizes profit by producing the quantity at which ?
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A. marginal cost equals price

B. marginal cost equals demand

C. none of these answers

D. marginal revenue equals price

E. marginal revenue equals marginal cost
1460. In a recession a government ?
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A. Is likely to want to increase supply in the economy

B. Is likely to want to decrease demand in the economy

C. Is likely to want to decrease demand in the economy

D. Is likely to want to stabilise demand in the economy

1461. Commodity money ?
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A. has intrinsic value

B. is used as reserves to back fiat money

C. is used exclusively in the economies of western Europe and north America

D. has no intrinsic value

1462. Three variables affect the demand for money they are _______ and __________?
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A. The proportion of weekly paid employees the time of year real income

B. the price level interest rates real income

C. The time of year bank opening hours the price level

D. bank opening hours, the proportion of weekly paid employees interest rates

1463. The difference between a banks actual reserves and its required reserves is its?
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A. profit margin

B. excess reserves

C. required reserve ratio

D. net worth

1464. Which company in the United States would likely be most concerned about Brazils dumping of steel in the U.S market ?
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A. Caterpillar Corp the producer of earth moving equipment

B. General Motors, the manufacturer of automobiles

C. Sneva Construction Co. The builder of skyscrapers

D. Tennessee Mining Co. an iron-ore mining company
1465. To adjust from Gross National Product to Net National Product ?
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A. Deduct depreciation

B. Deduct subsidies

C. Deduct indirect taxes

D. Add inflation

1466. Which of the following statements about money is not true ?
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A. Wealth held in the current account you hold with your bank is almost as convenient for buying things as wealth held in your wallet so the wealth in current accounts should be included in measures of money

B. A debit card is not really money because it is only a means of transferring money between accounts

C. All the wealth that people hold, in whatever form, should be considered as money

D. In a complex economy it is not easy to draw a clear dividing line between assets that should be considered as money and those that should not

1467. Micheal Roemers three-sector model shows that growth in the booming export sector I- reduces the price of foreign exchange II- retards other sectors growth by reducing incentives to export other commodities III- reduces incentives to replace domestic goods for imports IV- raises factor and input prices for non-booming sectors ?
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A. I, II and III only

B. I and III only

C. II and III only

D. I, II , III only IV
1468. A model of Game theory of oligopoly is known as the ?
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A. Monopoly Cell

B. Jury Box

C. Prisoners Dilemma

D. Jailhouses Sentences

1469. An example of a transfer payment is ?
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A. rent

B. Profit

C. wages

D. government purchases

E. unemployment benefits
1470. If The Central bank tries to keep the interest rate constant when the economy is operating on the steep part of the AS curve, _________ will occur?
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A. a depression

B. stagflation

C. a recession

D. a hyperinflation
1471. Public ownership of natural monopolies ?
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A. does none of the things described in these answers

B. tends to be inefficient.

C. creates synergies between the newly acquired firm and other government-owned companies.

D. usually lowers the cost of production dramatically.

1472. The government levying taxes on polluters or charging a surcharge for pesticide use are ?
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A. marginal abatement cost

B. internalization of negative spillover effects

C. examples of Coases theorem

D. examples of a free rider

1473. The interest rate ?
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A. is determined in the goods market and influences the level of planned investment and thus the money market

B. is determined in the goods market and has no influences on the money market

C. is determined in the money market and has no influence on the goods market

D. is determined in the money market and influences the level of planned investment and thus the goods market
1474. The Club of Rome Study, The Limits to Growth suggests that as natural resources diminish ?
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A. costs rise, leaving less capital for future investment

B. contingent valuation becomes critical

C. capital increasingly replaces labor

D. technological change compensates for capital depletion

1475. The chain of events that results from an expansionary monetary policy is ?
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A. aggregate output increases the demand for money increase the interest rate increase planned investment

B. money supply increases the interest rate increase planned investment increases aggregate output increases and money demand increases

C. money demand increases the interest rate decreases planned investment increases aggregate output increases and money demand increases

D. money supply increases the interest rate decrease planned investment increases aggregate output increases and money demand increase
1476. ________ are profits that accrue to whomever has the right to import the good that is restricted by the quota?
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A. quota rents

B. quota license

C. None of the above

D. quota prices

1477. Pakistans Gross Domestic Product (in contrast to Gross National Product) measures the production and income of ?
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A. The domestic service sector only

B. The domestic manufacturing sector only

C. none of these answers

D. Pakistan -owned firms no matter where they are located in the world

E. People and factories located within the borders of the Pakistan

1478. If a tariff and import quota lead to equivalent increases in the domestic price of steel, then ?
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A. They have different impacts on how much is produced and consumed

B. They have different impacts on how income is distributed

C. The tariff results in efficiency reductions but the quota does not

D. the quota results in efficiency reductions but the tariff does not

1479. A tariff-rate quota is essentially a ?
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A. two tier tariff applied to a countrys imports

B. three tier quota applied to a countrys exports

C. two tier quota applied to a countys exports

D. three-tier tariff applied to a countrys imports

1480. If oligopolists engage in collusion and successfully from a cartel, the market outcome is ?
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A. efficient because cooperation improves efficiency

B. known as a Nash equilibrium

C. the same as if it were served by competitive firms.

D. the same as if it were served by a monopoly.
1481. In monopoly which of the following is true ?
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A. There is one main buyer

B. The actions of one firm do not affect the market price and quantity

C. There is one main seller

D. There are many buyers and sellers

1482. Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero-marginal cost of study production. If ABC publishing charges separate price for both products its best strategy is to charge price that when combined, total ?
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A. Rs 85

B. Rs 60

C. Rs 80

D. Rs 75
1483. Buy national policies ?
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A. are intended to publicize the advantage of the most efficient domestic companies

B. result in government purchase policies favoring foreign over domestic producers

C. result in government purchase policies favoring domestic over foreign producers

D. attempt to restrict the number of tourists leaving a nation

1484. One of the transmission mechanisms of monetary policy is through consumer demand when interest rates ________ household wealth ________ and consumption _________?
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A. rise, increase, falls

B. rise, falls, falls

C. rise, falls, increase

D. rise; increase, increase

1485. An example of fiat money is ?
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A. Silver coins

B. gold

C. cigarettes

D. Paper euros
1486. What is the share of rural population in the total population of Pakistan ?
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A. 61.80%

B. 74.80%

C. 67.5%

D. 59.60%

1487. In the Kinked demand curve theory ?
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A. Demand is price inelastic

B. There is a kink in the marginal cost curve

C. non-price competition is likely

D. Demand is price elastic

1488. What is the share of Baluchistan in the total population of Pakistan ?
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A. 8.50%

B. 6.6%

C. 7.80%

D. 9.60%

1489. In the absence of trade, Canadas equilibrium price and quantity equal ?
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A. $65 and 40 calculators

B. $55 and 20 calculators

C. $30 and 40 calculators

D. $45 and 25 calculators
1490. Which of the following is not an argument put forth by economists in support of the use of advertising ?
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A. Advertising increases competition

B. Advertising provides new firms with the means to attract customers from existing firms.

C. Advertising provides a creative outlet for artists and writers

D. Advertising provides information to customers about prices, new products and location of retail outlets.

1491. Import quotas tend to result in all of the following except ?
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A. domestic consumers of the imported good being harmed

B. domestic producers of the imported good being harmed

C. Prices increasing in the importing country

D. Prices falling in the exporting country

1492. A higher GDP per capita may not means that the quality of life has really improved because ?
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A. It does not measure the quality of the items produced

B. It measures wealth not income

C. It measures Gross Domestic Product

D. It is only measured every five years:

1493. If the investment demand curve is vertical ?
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A. both monetary and fiscal policy are ineffective

B. monetary policy is effective but fiscal policy is ineffective

C. monetary policy is ineffective but fiscal policy is effective

D. both monetary and fiscal policy are effective

1494. The main reason that people hold money to buy things is referred to as the ?
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A. Transactions motive

B. Precautionary motive

C. Profit motive

D. speculation motive

1495. Deforestation ?
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A. leads to localized flooding

B. #NAME?

C. augments carbon restoration provided by forest

D. reduces sustainable logging potential

1496. In a recession ?
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A. Growth is slow

B. Prices are likely to increase

C. Growth is negative

D. Unemployment is likely to be low

1497. Which is the most densely populated province of Pakistan ?
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A. K.P.K

B. Punjab

C. Baluchistan

D. Sindh

1498. Money is ?
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A. The same as income

B. The value of all coins and currency in circulation at any time

C. All of the above

D. Anything that is generally accepted as a medium of exchange
1499. The home country government can confiscate the revenue effect of an import quota if ?
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A. quota licenses are given to foreign exporting companies

B. quota licenses are auctioned to the highest bidding importing company

C. if quota licenses are given to domestic consumers of the good

D. Both A and C

1500. Throughout the world, governments tend to auction quota licenses to their highest bidder ?
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A. seldom

B. never

C. always

D. often