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
1551. Barriers to entry do not include ?
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A. Patents

B. Mobility of resources

C. Internal economies of scale

D. High investment costs

1552. A market structure in which many firms sell products that are similar but not identical is known as ?
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A. monopolistic competition

B. perfect competition

C. monopoly

D. oligopoly

1553. Which of the following statements about price and marginal cost in competitive and monopolized markets is true ?
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A. In competitive markets price exceeds marginal cost, in monopolized markets price exceeds marginal cost

B. In competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost.

C. In competitive markets price exceeds marginal cost in monopolized markets price equals marginal cost

D. In competitive markets price equals marginal cost, in monopolized markets price equals marginal cost

1554. The inefficiency associated with monopoly is due to ?
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A. underproduction of the good

B. overproduction of the good

C. the monopolys profits

D. the monopolys losses

1555. Gross National Product equals ?
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A. Net National Product adjusted for inflation

B. Gross Domestic Product adjusted for inflation

C. Gross Domestic Product plus net property income from abroad

D. Net National Product plus net property income from abroad

1556. A specification of a maximum amount of a foreign produced good that will be allowed to enter the country over a given time period is referred to as a (an) ?
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A. export subsidy

B. import quota

C. domestic subsidy

D. export quota

1557. The population density in Islamabad per Sq. Km is ?
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A. 882

B. 780

C. 630

D. 990

1558. Air pollution from automobile exhausts, and water pollution steel plants are examples of ?
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A. negative externalities

B. social distortion

C. internal spillover

D. external economies

1559. When a monopolist produces an additional unit, the marginal revenue generated by that unit must be ?
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A. below the price because the output effect outweighs the price effect

B. below the price because the price effect outweighs the output effect

C. above the price because the price effect outweighs the output effect

D. above the price because the output effect outweighs the price effect

1560. According to the simple Keynesian view the aggregate supply curve is ?
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A. horizontal until it reaches full capacity and then becomes vertical

B. upward sloping over all levels of output

C. vertical until it reaches full capacity and then becomes horizontal

D. downward sloping over all levels of output

1561. In order to maximize profits, a monopoly company will produce that quantity at which the ?
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A. marginal revenue equals marginal cost

B. marginal revenue equals average total cost

C. Price equals marginal revenue

D. total revenue equals total cost

1562. In a monopoly which of the following is not true ?
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A. The firm is a price taker

B. There is one main sellers

C. There is freedom of entry and exit into the industry in the long run

D. Products are differentiated

1563. The marginal revenue curve in monopoly ?
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A. Lies below and diverges from the demand curve

B. Is parallel with the demand curve

C. Lies below and converges with the demand curve

D. Equals the demand curve

1564. With free trade, suppose that the rest of the world can supply calculators to Canada at a price of $30. Canadas imports would now equal _____ and its consumer surplus would ____ relative to what occurred in the absence of trade. What is the change in consumer surplus? Refer to the figure that you have plotted ?
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A. 30 calculators increase

B. 20 calculators increase

C. 25 calculators decrease

D. 25 calculators increase

1565. According to last census, the population growth rate in Pakistan was ?
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A. 3.70%

B. 4.10%

C. 2.61%

D. 3.90%

1566. In a cartel member firms may be given a fixed amount to produce. This is called a ?
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A. Factor

B. Quota

C. Quotient

D. Limit

1567. Gross Domestic Product is the sum of the market value of the ?
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A. inferior goods and services

B. mal goods and services

C. manufactured goods

D. intermediate goods

E. final goods and services
1568. The welfare effects of a quota depend to a considerable extent upon ?
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A. the size of the quota

B. All of the above

C. elasticities of domestic demand and supply

D. who has the quota license

1569. Which of the following is most urbanized area in Pakistan ?
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A. Baluchistan

B. Sindh

C. Punjab

D. K.P.K

1570. The form of dumping that represents the greatest potential net welfare loss the for importing national is ?
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A. yearend dumping

B. persistent dumping

C. sporadic dumping

D. predatory dumping
1571. If your grandparents buy a newly built retirement home, this transaction would affect ?
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A. none of these answers

B. consumption

C. government purchases

D. investment

E. net exports

1572. If a cobbler buys leather for Rs100 and thread for Rs50 and uses them to produce and sell Rs500 worth of shoes to consumers the contribution to GDP is ?
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A. Rs50

B. Rs500

C. Rs650

D. Rs100

1573. An increase in the money supply aimed at increasing aggregate output is referred to as ?
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A. expansionary fiscal policy

B. contractionary fiscal policy

C. expansionary monetary policy

D. contractionary monetary policy

1574. A monopoly is able to continue to generate economic profits in the long run because ?
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A. Potential competitors sometimes dont notice the the profits.

B. antitrust laws eliminate competitors for a specified number of years.

C. of all of the things described in these answers

D. the monopolist is financially powerful.

E. there is some barrier to entry to that market
1575. The death rate of infant rate per thousand in Pakistan is ?
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A. 120 infant

B. 100 infant

C. 60 infant

D. 70 infant
1576. international dumping may involve ?
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A. selling goods to foreigners at a price below that charged domestic consumers

B. All of the above

C. selling goods to foreigners at a price below the cost of production

D. antidumping duties being levied on the imported, dumped goods

1577. When a oligopolist individually chooses its level of production to maximize its profits it charges a price that is ?
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A. more than the price charged by either monopoly or a competitive market

B. less than the price charged by a monopoly and more than the price charged by a competitive market

C. less than the price charged by either monopoly or a competitive market

D. more than the price charged by a monopoly and less then the price charged by a competitive market

1578. A welfare loss occurs in monopoly where ?
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A. The price is greater than the marginal benefit

B. The price is greater than the marginal revenue

C. The price is greater than the marginal cost

D. The price is greater than the average revenue

1579. The density of population in Sindh is ?
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A. 212 per sq. Km

B. 270 per sq. Km

C. 239 per sq. Km

D. 305 per sq. Km

1580. Defenders of the use of brand names argue that brand names ?
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A. all of these answers

B. are useful even in socialist economics such as the former Soviet Union

C. e firms incentive to maintain high quality

D. provide information about the quality of the product

1581. If nominal GDP in 2005 exceeds nominal GDP in 2004, then the production of output ?
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A. must have risen

B. must have stayed the same

C. must have fallen

D. may have risen fallen, or stayed the same because there is not enough information to determine what happened to real output
1582. Which of the follow statements about price discrimination is not true ?
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A. For a monopolist to engage in price discrimination buyers must be unable to engage in arbitrage.

B. Price discrimination increases a monopolists profits.

C. Perfect price discrimination generates a deadweight loss

D. Price discrimination can raise economic welfare.

E. price discrimination requires that seller be able to separate buyers according to their willingness to pay.

1583. The opportunity cost of holding money is determined by ?
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A. the level of aggregate output

B. the interest rates

C. the discount rates

D. the inflation rates

1584. Under a tariff- rate quota ?
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A. The within-quota tariff rate exceeds the over-quota tariff rate

B. the over-quota tariff rate exceeds the with-quota tariff rate

C. The within-quota tariff rate equals the over-quota tariff rate

D. The within-quota tariff rate plus over-quota tariff rate equal 100 percent

1585. As the number of sellers in an oligopoly grows larger, an oligopolistic market looks more like ?
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A. a collusion solution

B. monopoly

C. monopolistic competition

D. a competitive market
1586. For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to ?
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A. increase the money supply

B. decrease the money supply

C. increase the demand for money

D. decrease the demand for money

1587. The ratio of Urdu speaking population is ?
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A. 18%

B. 12%

C. 16%

D. 8%
1588. Negative externality is also known as ?
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A. resource curse

B. external diseconomies

C. public goods

D. marginal damage

1589. The major segment of Saraiki speaking population lives in ?
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A. Azad Kashmir

B. Sindh

C. K.P.K

D. Punjab
1590. Which of the following is not put forth as a criticism of advertising and brand names ?
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A. Advertising manipulates peoples tastes to create a desire that otherwise would not exist

B. of these answers are criticisms of advertising and brand names

C. Advertising increases brand loyalty causes demand to be more inelastic and thus, increase mark-up over marginal cost.

D. Advertising increase competition Which causes unnecessary bankruptcies and layoffs.
1591. The primary function of bank is to ?
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A. Control the money supply

B. Provide notes and coins for trade

C. Provide a cheque clearing system

D. Make a profit
1592. A(n) ________ is n example of a quota where foreigners hold quota licenses ?
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A. export quota

B. auction quota

C. tariff quota

D. embargo

1593. Suppose an oligopolist individually maximizes its profits. When calculating profits, if the output effect exceeds the price effect on the marginal unit of production, then the oligopolist ?
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A. is in a Nash equilibrium

B. has maximized profits.

C. should exit the industry.

D. Should produce fewer units

E. Should produce more units
1594. Which of the following is foreign owned (even through it is traditionally thought of as a U.S company) ?
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A. Xerox

B. IBM

C. Kodak

D. Universal Studios
1595. The Wheeler-Lea Act gives the Federal Trade Commission the power to regulate ?
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A. unfair and deceptive acts or practices

B. competitive advertising of objective product benefits

C. marketing ethics

D. interstate commerce

1596. If labour productivity per week is 200 units and there are 5 employees what is the total output ?
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A. 1000 units

B. 200 units

C. 195 units

D. 40 units
1597. A(n) _____ is a retail store that carries a narrow product line with a deep assortment within that line ?
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A. specialty store

B. convenience store

C. shopping goods store

D. department store

1598. When personal interviewing involves inviting six to ten people to gather for a few hours with a trained interviewers to talk about a product service, or organization the method is called ?
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A. Probing

B. the Delphi method

C. Selective sponsorship

D. focus group interviewing
1599. Central banks prefer to fix the ____ and accept the resulting _____?
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A. interest rate equilibrium money supply

B. demand for money equilibrium money supply

C. demand for money, interest rate

D. interest rate, demand for money

1600. Which one of the following is not an argument in support of the UK joining the EMU ?
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A. The UK risks exclusion from the Euroland capital market with damaging consequences with damaging

B. None of these arguments they are all arguments in support of the UK joining the UMU

C. The characteristics of the UK housing market make UK consumers expenditure very sensitive to changes in interest rates

D. The UK needs to be a member of the EMU in order to continue to attract such large share of foreign direct investment in EU countries