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
1501. If the banks in an economy operate with a reserve ratio of 20 percent then the money multiplier is ?
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A. 4

B. 25

C. 5

D. 20

1502. A tariff-rate quota ?
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A. uses a single tariff along with import quotas to restrict import

B. is a limit on the number of tariffs that a country can place on imports?

C. is designed to avoid the the price increases caused by simple tariffs

D. is a two-tier tariff system intended to restrict imports?
1503. The booming of North Seas gas export revenues in the 1970s that appreciated the guilder, making industrial export more costly in foreign currencies and increasing foreign competition and unemployment is known as ?
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A. Blind river disease

B. Trade deficit

C. Dutch disease

D. Economic turmoil

1504. If the quantity of money demanded exceeds the quantity of money supplied then the interest rate will ?
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A. rise

B. remain constant

C. fall

D. change in a certain direction

1505. The value of plant and equipment worn out in the process of manufacturing goods and services is measured by ?
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A. Net National Product

B. intermediate production

C. Investment

D. consumption

E. depreciation
1506. In monopoly in long run equilibrium ?
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A. The firm is allocatively inefficient

B. The firm is Productively efficient

C. The firm produces at the socially optimal level

D. The firm produces where marginal cost is less than marginal revenue

1507. Which of the following is not a barrier to entry in a monopolized market ?
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A. A single firm is very large

B. A key resource is owned by a single firm

C. The costs of production make a single producer more efficient than a large number of productions

D. The government gives a single firm the exclusive right to produce some good

1508. The present death rate per thousand in Pakistan in ?
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A. 11 persons

B. 7.1 persons

C. 14 persons

D. 13 persons

1509. Bance Solida has, in the past, always operated with a reserve ratio of 25 percent. It has now been taken over by Gung-Ho Bank Which operates with a reserve ration of 12 percent, Assuming that Banca Solida adopts the business practices of its new owner, What will be the effect on money supply in the country in which Banca Solida operates ?
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A. Money supply will decrease because the loans will have to be repaid

B. Money supply will increase because Banca Solida will increase its loans

C. The effect on money supply cannot be determined from the information given

D. Money supply will be unchanged because the central bank has made no policy changes

1510. Suppose the State Bank purchases a Rs 1,000 government bond from you. If you deposit the entire Rs 1,000 in you bank what is the total potential change in the money supply as a result of the State Banks action if the your banks reserve ratio is 20 percent ?
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A. Rs 5,000

B. Rs 1,000

C. Rs 0

D. Rs 4,000

1511. Real GDP is measured in __________ prices while nominal GDP is measured in _________ prices?
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A. intermediate; final

B. domestic; foreign

C. base year; current year

D. current year; base year

E. foreign; domestic

1512. In the absence of traded, Norways equilibrium price and quantity equal ?
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A. $2,500 and 2,000 computers

B. $3,500 and 2,000 computers

C. $1,500 and 2,800 computers

D. $2,000 and 1,600 computers

1513. In terms of the demand for money the interest rate represents ?
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A. the price of borrowing money

B. The opportunity cost of holding money

C. the rate at which current consumption can be exchanged for future consumption

D. the return on money that is saved for the future

1514. A attempts to limit outsourcing of jobs to foreigners by requiring that a minimum percentage of a products value must be produced domestically if that good is to be sold in the domestic market ?
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A. tariff-rate quota

B. domestic content requirement

C. voluntary restraint agreement

D. domestic subsidy

1515. Which of the following best defines price discrimination ?
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A. charging different prices based on cost-of-service differences

B. charging different prices for goods with different costs of production

C. charging different prices on the basis of race

D. selling a certain product of given quality and cost per unit at different prices to different buyers
1516. A fall in investment demand can result from ?
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A. more expensive capital goods

B. higher interest rates

C. lower expected future profits

D. All of the above
1517. Census is held in Pakistan after every?
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A. Fifteen years

B. Twenty years

C. Ten years

D. Twenty-five years

1518. Which of the following firms is most likely to spend a large percentage of their revenue on advertising ?
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A. the producer of a highly differentiated consumer product

B. a perfect competitor

C. The manufacturer of an industrial product

D. The producer of a low-quality product that costs the same to produce as a similar high-quality product

E. the manufacturer of an undifferentiated consumer commodity

1519. The density of population in Baluchistan is ?
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A. 18 per sq. Km

B. 28 per sq. Km

C. 59 per sq. Km

D. 39 per sq. Km

1520. Antidumping duties are used to ?
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A. reduce the tariff revenue of the domestic government

B. offset the margin of dumping

C. punish domestic consumers for buying high-priced imported goods

D. discourage foreign governments from subsidizing their exporters

1521. The Montreal Protocal, signed in 1987 and strengthened in 1990 ?
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A. relies on internationally tradable emission permits

B. reduces ozone depletion through the cutting of chlorofluorocarbon production

C. attains the global optimal level of common property resource

D. minimizes free riders of public goods

1522. By practicing price discrimination, the firm would realize profits totaling ?
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A. $660,000

B. $540,000

C. $160,000

D. $420,000

1523. The idea the government spending causes a reduction in private investment is called ?
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A. fiscal drag

B. crowding-out

C. investment blight

D. the Thatcher effects

1524. Which of the following events will lead to a decrease in the equilibrium interest rate ?
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A. An increase in the level of aggregate output

B. A decrease in the price level

C. An increase in the discount rate

D. A sale of government securities by the central bank

1525. During periods of growing domestic demand, an import quota ?
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A. has the same restrictive effect on a countrys imports as a tariff

B. Is more restrictive on a countrys imports than a tariff

C. will always generate increased tax revenue for the government

D. is less restrictive on a countrys imports than a tariff

1526. In Game Theory ?
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A. Firms collude as part of cartel

B. Firms are assumed to cooperate with each other

C. Firms consider the actions of others before deciding what to do

D. Firms are assumed to act independently

1527. What is the share of population under 15 in the total population ?
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A. 46%

B. 50%

C. 49%

D. 52%

1528. What was the crude birth rate of 1998 ?
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A. 35.4 per 1000

B. 32.5 per 1000

C. 31.8 per 1000

D. 30.5 per 1000
1529. Which is the most thinly populated province of Pakistan ?
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A. Punjab

B. Sindh

C. K.P.K

D. Baluchistan
1530. In a tariff and import quota lead to equivalent increase in the domestic price of steel, then ?
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A. They have identical impact on how much is produced and consumed

B. They have identical impact 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

1531. The current growth rate of population in Pakistan is ?
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A. 2.70%

B. 1.8%

C. 2.90%

D. 2.60%

1532. A _______ allows a specified number of goods to be imported each year, and it not specifies from where the product is shipped and who is permitted to import ?
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A. selective quota

B. global quota

C. export quota

D. import quota

1533. If a few firms dominate an industry the market is known as ?
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A. monopolistic competition

B. Competitively monopolistic

C. Duopoly

D. Oligopoly
1534. Net National Product equals ?
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A. Gross Domestic Product adjusted for inflation

B. Gross Domestic Product plus net property income from abroad

C. Gross National Product adjusted for inflation

D. Gross National Product minus depreciation
1535. GDP would include which of the following ?
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A. housework

B. illegal drug sales

C. consulting services

D. the value of taking a day off from work

E. intermediate sales

1536. To aid its calculator producers, suppose that the government provides them a subsidy of $10 for each calculator produced The amount of imports now equals _____ and the deadweight loss of the subsidy to the Canadian economy equals _________?
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A. 20 calculator, $50

B. 25 calculator, $50

C. 20 calculator, $100

D. 25 calculator, $100

1537. The curve that illustrates the negative relationship between the equilibrium values of aggregate output and the interest rate in the goods market is the ?
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A. aggregate supply curve

B. LM curve

C. aggregate demand curve

D. IS curve

1538. The Organization of Petroleum Exporting Countries (OPEC) is a(n) _________whose members agree to limit output and fix prices?
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A. cartel

B. monopoly

C. entropy

D. industry

1539. The use of word competition in the name of the market structure called monopolistic competition refers to the fact that ?
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A. Monopolistically competitive firms charge prices equal to the minimum of their average total cost just like competitive firms.

B. The products are differentiated in a monopolistically competitive market just like in a competitive market.

C. there are many sellers in a monopolistically competitive market and there is free entry and exit in the market just like a competitive market

D. Monopolistically competitive firms face a downward-sloping demand curve just like competitive firms.

1540. The reason for dumping is that the demand curve for ABC Cos computers is _______ because ________ are available from other nations?
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A. more elastic in Japan, fewer substitutes are available from other; nations

B. more inelastic in Japan; fewer substitutes are available from other nations

C. more inelastic in Japan; more substitutes are available from other; nations

D. more elastic in Japan, more substitutes are available from other nations
1541. A production subsidy that is granted to a producer of an import-competing good ?
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A. has only a protective effect deadweight loss

B. does not require government taxes to finance it

C. yields the same deadweight welfare loss as an import tariff or import quota

D. has only a consumption effect deadweight loss

1542. As the required reserve ratio is decreased the money multiplier ?
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A. could either increase or decrease

B. decreases

C. remain the same, as long as banks hold no excess reserves

D. increases
1543. Land and natural resources are considered ?
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A. non-producible

B. output

C. capital accumulation

D. common property resources

1544. If planned investment becomes more sensitive to interest rate changes the crowding out effect will ?
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A. be reduced

B. fall to zero

C. be increased

D. not be affected

1545. Government Securities with terms of more than one year are called ?
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A. Treasury bills

B. government bonds

C. bills of exchanges

D. Capital bills

1546. For year the U.S government levied quotas on inexpensive oil imported from the Middle East The quotas led to cost increases for U.S consumers totaling $3 billion for oil products. An apparent justification of this policy was that ?
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A. one should not be too dependent on foreign suppliers of crucial resources

B. U.S oil companies and workers deserved higher incomes

C. The U.S government needed the quota revenue to balance its budget

D. U.S oil was of superior quality and merited higher prices

1547. When the money supply increase ?
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A. The economy moves down the LM curve

B. the economy moves up the LM curve

C. The LM curves shifts to the left

D. The LM curve shift to the right
1548. In certain industries Japanese employers hesitate to lay off workers Therefore they sometimes have excess supplies of goods that they cannot sell on the home market without lowering prices. To hold down losses they sell goods in overseas markets at prices well beneath those in japan This practice is best referred to as ?
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A. Orderly marketing

B. dumping

C. domestic content pricing

D. trigger pricing

1549. The three main tools of monetary policy are ?
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A. fiat, commodity and deposit money

B. Government expenditures taxation and reserve requirements

C. Open-market operations reserve requirements and the refinancing rate

D. Coin, currency and demand deposits

E. The money supply, government purchases and taxation

1550. Laws that make it illegal for firms to conspire to raise prices or reduce production are known as ?
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A. antimonopoly laws

B. anti-collusion laws

C. pro-competition laws

D. antitrust laws

E. all of these answers