economics MCQs – Page 338

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 Review each marked answer and report any item that may be outdated or unclear.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
6741. Culture is the basis of______________?
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A. all animal groups

B. not only human but also ant society

C. human social life

D. none of the above

6742. As the MPS increases the multiplier will ?
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A. decrease

B. increase

C. remain constant

D. either increase or decrease depending on the size of the change in investment

6743. An outward shift in the demand for money other things being equals should lead to ?
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A. A lower interest rate but the same quantity of money

B. A higher quantity of money but the same interest rate

C. A higher interest rate but the same quantity of money

D. A higher quantity of money but lower interest rates
6744. Scientists start an investigation with by________________?
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A. verifying a hypothesis

B. replicating an experiment

C. selecting and defining a topic

D. analyzing data

6745. According to supply side economists as tax rates are reduced labour supply should increase. This implies that ?
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A. There is no substitution effect when tax rates are changed

B. The substitution effect of a wage change is greater than the income effect of a wage change

C. There is no income effect when tax rates are changed

D. The income effect of a wage change is greater than the substitution effect of a wage change.

6746. Total revenue equals ?
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A. Price plus quantity

B. Price divided by the quantity sold

C. Price minus quantity sold

D. Price multiplier by quantity sold

6747. There is a tendency for people to_______________?
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A. accept group norms

B. rebel against group norms

C. respond only to negative sanctions

D. respond only to violence

6748. Symbolic interaction ism functionalism conflict feminism exchange are_____________?
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A. theoretical models used by sociologists and anthropologists

B. economic theories

C. the vocabulary of computer science

D. issues in psychology

6749. Cultural universals include ?
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A. personal adornment

B. food taboos

C. all of the above

D. music
6750. Assuming there is no government or foreign sector the formula for the multiplier is ?
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A. 1/(1+ MPC)

B. 1/MPS

C. 1 MPC

D. 1/MPC

6751. Friedmans theory of consumption focuses on ?
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A. Past income

B. Current income

C. permanent income

D. Disposable income

6752. Economics deals with_______________?
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A. consumption of goods and services

B. production of goods and services

C. distribution of goods and services

D. all of the above
6753. 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. Rs26.67 million

B. Rs 15 million

C. Rs20 million

D. Rs80 million
6754. In Which of the business cycle do firms try to cut stocks in order to save costs ?
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A. The expansion

B. The peeking out

C. The recession

D. The upturn

6755. Injections ?
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A. Always equal savings

B. include investment and export spending

C. Always equal national income

D. Decrease aggregate demand

6756. A case study is most useful when ____________?
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A. events under consideration are rare

B. no hypothesis can be formulated

C. limited research funds are available

D. facts must be established
6757. If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the average propensity to consume is what ?
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A. 0.8

B. 800

C. 810

D. 0.81

6758. If an economy moves from producing 10 units of A and 4 units of B to producing 7 As and 5Bs The opportunity cost of the 5th B is ?
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A. 3As

B. 1A

C. 10As

D. 7As

6759. In the short term a firm will produce provided the revenue ?
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A. covers variable costs

B. covers fixed costs

C. covers revenue

D. covers total costs

6760. The current trend in the social sciences is toward ?
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A. a totally value free approach

B. using the findings of the social sciences to reform society

C. statistical and quantitative ways of investigating human behavior

D. using whatever technique seems best to fit