economics MCQs – Page 339

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 Review each marked answer and report any item that may be outdated or unclear.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
6761. An increase in national income is ?
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A. Likely to increase spending on imports

B. Likely to decrease investment

C. Likely in increase exports

D. Likely to decrease savings

6762. A sample survey deals with_______________?
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A. a statistically valid section of a population

B. asking people who walk by to fill out naires

C. eating samples at various supermarkets

D. an entire population

6763. An increase in investment is most likely to be caused by ?
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A. Lower interest rates

B. Lower national income

C. An increase in withdrawals

D. A decrease in the marginal propensity to consume
6764. Language____________?
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A. reflects changes in society

B. passes on knowledge from generation to generation

C. helps humans to cooperate

D. all of the above
6765. The ability-to-pay principle of taxation suggests that if a tax system is to be vertically equitable it should be ?
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A. regressive

B. proportional

C. progressive

D. efficient

6766. The graph that shows the relationship between the size of a tax and the tax revenue collected by the government is known as a ?
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A. Laffer curve

B. Reagan curve

C. Keynesian curve

D. Henry George curve.

E. none of these answers

6767. The reduction of tax ?
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A. will always reduce tax revenue regardless of the prior size of the tax

B. causes a market to become less efficient

C. will have no impact on tax revenue.

D. could increase tax revenue if the tax had been extremely high
6768. Sana values a pair of blue jeans at Rs400. If the price is Rs350 Sana buys the jeans and generates consumer surplus of Rs50 Suppose a tax is placed on blue jeans that causes the price of blue jeans to rise to Rs450 Now sana chooses not to buy a pair of?
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A. the ability-to-pay principle

B. horizontal equity

C. the deadweight has demonstrated

D. the benefits principle

E. The administrative burden of a tax.

6769. Refer to Exhibit 4. If there is no tax placed on the product in this market, producer surplus is the area ?
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A. C + F

B. A + B + E

C. D

D. C + D + F
6770. An efficient tax ?
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A. minimize the deadweight loss from the tax.

B. does all the things describe in these answers

C. raises revenue at the smallest possible cost to taxpayers.

D. minimizes the administrative burden form the tax

6771. A tax system is regarded as horizontally equitable if ?
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A. all taxpayers pay the same amount of tax

B. the system comprises only lump sum taxes

C. taxes are as low as possible

D. taxpayers with similar abilities to pay taxes pay the same amount

E. taxes on all goods are levied at the same rate

6772. Refer to Exhibit 4. If a tax is placed on the product in this market consumer surplus is the area ?
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A. A

B. A + B + E

C. D

D. A + B +C + D

6773. A tax on petrol is likely to ?
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A. cause a greater deadweight loss in the short run when compared to the long run.

B. generate a deadweight loss that is unaffected by the time period over which it is measured

C. cause a greater deadweight loss in the long run when compared to the short run

D. None of these answers

6774. When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold than otherwise the tax has ?
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A. decreased equity

B. increased efficiency

C. generated no tax revenue

D. caused a deadweight loss
6775. The average tax rate is ?
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A. the extra taxes paid on an additional dollar or income.

B. total income divided by total taxes paid

C. the taxes paid by the marginal worker

D. total taxes paid divided by total income
6776. Deadweight loss is greatest when ?
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A. supply is elastic, and demand is perfectly inelastic

B. demand is elastic, and demand is perfectly inelastic

C. both supply and demand are relatively inelastic

D. both supply and demand are relatively elastic
6777. Refer to Exhibit 4. If a tax is placed on the product in this market. deadweight loss is the area ?
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A. E + F

B. B + C + E + F

C. B + C

D. A + B + C + D

6778. The marginal tax rate is ?
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A. the extra taxes paid on an additional unit of income

B. total taxes paid divided by total income

C. total income divided by total taxes paid

D. the taxes paid by the marginal worker

6779. If the Pakistani government runs a budget surplus there is ?
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A. an excess of government spending over government receipts.

B. a surplus of government workers.

C. an equality of government spending and receipts.

D. an excess of government receipts over government spending.
6780. Refer to Exhibit 4. If there is no tax placed on the product in this market total surplus is the area ?
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A. E + F

B. B + C + E + F

C. A + B + C + D + E + F

D. A + B + C + D