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
1601. When you consume good Q, not only do you benefit form consuming the good but other people benefit from your consumption as well, if firms produce good Q where P = MC, firms will be producing ?
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A. so that consumer surplus is zero

B. more than the efficient level of output

C. less than the efficient level of output

D. the efficient level of output

1602. In the equation C = a + bY, which describes the aggregate consumption function b stands for ?
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A. The marginal propensity to consume.

B. The amount of income when consumption is zero

C. The average consumption level

D. The amount of consumption when income is zero

1603. For a firm operating in two markets and price discriminating the profit maximising condition is ?
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A. Marginal revenue in A = Marginal revenue B = Average cost

B. Marginal revenue in A = Marginal revenue B = Marginal cost

C. Marginal revenue in A= Price B

D. Marginal revenue in A = Marginal revenue B = Price A = Price B
1604. In perfect price discrimination ?
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A. The demand curve is the marginal cost curve

B. The marginal cost is the average cost curve

C. The average revenue equals the average cost

D. The demand curve is the marginal revenue

1605. A ________ is any activity or benefit offered for sale that is essentially intangible and does not result in the ownership of anything?
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A. service

B. product

C. basic staple

D. demand

1606. Demand pull inflation result from ?
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A. consumer business and government demand for goods and services in excess of an economys capacity to produce

B. a shortage of demand for goods and services in excess of supply during depression

C. demand for public goods is greater than demand for consumer goods

D. demand for government spending on public goods goes due to lack of financial backup through tax collection

1607. Which of the following could not be described as an asymmetric macroeconomic shock ?
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A. An epidemic of an animal disease in a country that significantly reduces the countrys agricultural output

B. A sudden and substantial rise in prices on the world oil market

C. None of these answers All of them are asymmetric macroeconomic shocks

D. A sudden and substantial fall in the worldwide demand for French wine

1608. A fall in interest rates is likely to ?
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A. Increase savings

B. Decrease exports

C. Increase aggregate demand

D. Decrease consumption

1609. Assume there is no government or foreign setor, If the MPC is 75 a Rs20 million decrease in planned investment will cause aggregate output to decrease by ?
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A. Rs80 million

B. Rs 15 million

C. Rs26.67 million

D. Rs20 million

1610. A benefit to consumers of price discrimination is that ?
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A. Firms profits increase

B. Producer surplus increases

C. Some products are produced that would not otherwise be produced

D. Consumer surplus decreases
1611. Coginitive dissonance occurs in which stage of the buyer decision process model ?
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A. Postpurchase behaviour

B. Evaluation of alternative

C. Information search

D. Need recognition

1612. If marginal product is below average product ?
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A. The average product will fall

B. The total product will fall

C. Total revenue will fall

D. Average variable cost will fall

1613. A reduction in interest rates, causes an increases in the monetary base that results in an _________ in the availability of consumer credit and a ________ in the cost of consumer credit?
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A. reduction, reduction

B. reduction, increase

C. increase , increase

D. increase, reduction
1614. Each point on the LM curve represents the equilibrium point in the ?
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A. money market for the given level of the money supply

B. money market for different combinations of interest rates and output

C. goods market for the given interest rate

D. goods market for the given level of government spending

1615. For equilibrium in an open four sector economy ?
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A. Government spending = tax revenue

B. Savings = investment

C. Actual injections = actual withdrawals

D. Planned injections = planned withdrawals

1616. As income increase ?
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A. The average propensity to consume falls

B. The average propensity to consume diverges in value from the marginal propensity to consume

C. The average propensity to consume always approaches 0

D. The average propensity to consume gets nearer in value of the marginal propensity to consume

1617. If an increase in investment leads to a bigger increase in national income this called the ?
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A. Multiplier

B. Accelerator

C. Aggregate demand

D. Monetarism

1618. A company is practicing ________ if it focuses on subbasements with distinctive traits that may seek a special combination of benefits ?
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A. micro marketing

B. niche marketing

C. segment marketing

D. mass marketing

1619. Sellers that handle their own exports are engaged in ?
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A. contract manufacturing

B. licensing

C. direct exporting

D. indirect exporting

1620. Investment depends mainly on ?
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A. Past levels of income

B. Present national income levels

C. Historic data

D. Future expected profits

1621. When marginal revenue equals marginal cost ?
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A. Profits are Zero

B. There is the biggest positive difference between total revenue and total cost

C. There is the biggest negative difference between total revenue and total cost

D. Total revenue equals total cost

1622. ________ is setting the price steps between various products in a product the based on cost difference between the products, customer evaluations of different features, and competitors prices ?
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A. By-product pricing

B. Captive-product pricing

C. Product line pricing

D. Optional-product pricing

1623. When an importing country sets limits on the amount of goods it will accept in certain product categories it is called a(n) ?
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A. barrier

B. embargo

C. tariff

D. quota
1624. An independent assessment of the impact of firms activities on society is called a ?
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A. Balance sheet

B. Social audit

C. Financial audit

D. Profit and loss account

1625. The curve that illustrates the positive relationship between the equilibrium values of aggregate output and the interest rate in the money market is the ?
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A. IS curve

B. money supply curve

C. money demand curve

D. LM curve
1626. In a free market the combination of products produced will be determined by ?
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A. Market forces of supply and demand

B. The law

C. The public Sector

D. The government

1627. A high degree of real wage flexibility will tend to reduce the cost to a country of joining a currency union because ?
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A. real wages fall and so offset the inflationary effect of switching from the old currency to the new common currency

B. workers will move from a country in which aggregate demand falls to other countries of the currency union, and so unemployment remains lower than it otherwise would

C. real wages fall rapidly in a recession and the economy moves quickly back to long run equilibrium so limiting the duration of the recession even when exchange rate adjustment is not possible

D. All of the reasons given in these answers are correct

1628. If the marginal revenue is Positive ?
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A. Selling another unit will increase costs

B. Selling another unit will increase average revenue

C. Selling another unit will increase total revenue

D. Selling another unit will increase profits

1629. _______ is the step in the selling process in which the salesperson learns as much as possible about a prospective customer before making a sales call?
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A. Prospecting

B. Handling objections

C. Preapproach

D. Approach

1630. When interest rate rise, other things equal, we can expect the quantity of real money holding to ?
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A. not change

B. None of these

C. fall

D. increase

1631. In the long term a firm will produce provided the revenue covers ?
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A. Total costs

B. Revenue

C. Variable costs

D. Fixed costs

1632. According to the paradox of thrift increased efforts to save will cause ?
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A. an increase in income but no overall change in saving

B. a decrease in income and an overall decrease in saving

C. an increase in income and an increase in overall saving

D. a decrease in income but an increase in saving

1633. The resources in the economy do not include ?
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A. Capital

B. Land

C. Demand

D. Labour

1634. Reaganomics was a radical shift in Policy aimed at direct tackling ?
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A. the supply side of the economy

B. The charities economy

C. The underground economy

D. The demand side of the country

1635. Which of the following is true ?
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A. If the marginal cost is positive total costs are miximised

B. If the marginal cost is greater than the average cost the average cost increase

C. If the marginal cost is greater than the average cost the average cost falls

D. If the marginal cost is negative total costs increase at a decreasing rate if output increases

1636. Keynes suggested that decisions to consume and save were based on ?
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A. previous decisions

B. permanent income

C. absolute income

D. relative income

1637. The speculative demand for money occurs when ?
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A. Individuals hold money to shop

B. Individuals hold money to buy things

C. Individuals hold money just in case an emergency happens

D. Individuals hold money rather than other assets because they are worried about the price of the other assets falling

1638. The fraction of change in income that is consumed or spend is called ?
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A. the marginal propensity to consume

B. the marginal propensity of expenditure

C. the average propensity to consume

D. the marginal propensity to save

1639. The major advantage of survey research is its ?
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A. flexibility

B. simplicity

C. structure

D. organization

1640. The accelerator theory of investment says that induced investment is determined by ?
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A. the level of aggregate demand

B. expectations

C. the level of national income

D. the rate of change of national income
1641. If the price elasticity is -0.3 this means ?
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A. A price fall would increase revenue

B. Demand is upward sloping

C. Demand is price elastic

D. Demand is price inelastic

1642. An increase in the marginal propensity to consume will ?
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A. Reduce injections into the economy

B. Decrease national income

C. increase the size of the multiplier

D. Increase the marginal propensity to save
1643. Economic growth can be shown by ?
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A. A movement along the production possibility frontier

B. An outward shift of the production possibility frontier

C. An inward shift of the production possibility frontier

D. A decision by the government to produce inside the production possibility frontier

1644. If the central bank buys financial securities in the open market to increase the monetary base, this is and example of ?
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A. Open Market operations

B. Financial regulation

C. lender of less resort

D. financial intermediation

1645. Which of the following are costs of inflation ?
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A. inflation weakens the creation of credit and capital markets

B. Inflation imposes a tax on the holders of money

C. inflation distorts business behavior especially investment behavior

D. #NAME?

1646. Assuming there is no government or foreign sector, if the multiplier is 2.5 the MPC is ?
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A. 2.5

B. 25

C. 6

D. 4

1647. The biggest of greatest amount of involvement in a foreign market comes through which of the following ?
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A. Joint venturing

B. Licensing

C. Direct investment

D. Exporting

1648. The use of price points for reference to different levels of quality for a companys related products is typical of which product mix pricing strategy ?
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A. Captive-product pricing

B. By-product pricing

C. Product line pricing

D. Optional-product pricing

1649. According to supply-side economists if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?
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A. aggregate supply will increase , aggregate demand will decrease

B. aggregate supply will increase, aggregate output will increase and the price level will decrease

C. aggregate supply will increase aggregate output will increase and the price level will increase

D. both aggregate supply and demand will increase and the price level will increase

1650. In macroeconomics, equilibrium is defined as that point at which ?
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A. aggregate output equals consumption minus investment

B. planned aggregate expenditure equals consumption

C. Planned aggregate expenditure equals aggregate output

D. saving equals consumption