economics MCQs – Page 342

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 Review each marked answer and report any item that may be outdated or unclear.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
6821. An export quota agreement to stabilize the price of bauxite tends to be more successful when the member producer countries as a percentage of the worlds producer countries is __________ and the _________ it is for the member producer countries to store/stock pile bauxite?
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A. relatively large; easier

B. relatively small; more difficult

C. relatively small; easier

D. relatively large; more difficult

6822. Assume That the firms operate as purely competitive sellers (a purely competitive industry) In the long run, equilibrium price equals _________ quantity equals _________ and profits total _________?
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A. $100, 2 million barrels per day $60 million

B. $80, 4 million barrels per day $70 million

C. $40, 8 million barrels per day, $0 million

D. $60, 6 million barrels per day, $20 million

6823. Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to ____ tin and an export quota agreement would require that member countries _________ their export of tin?
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A. purchase; decrease

B. purchase; increase

C. sell; decrease

D. sell; increase
6824. The pattern of economic growth describes the phenomenon of countries moving up in technological development by following the patterns of countries ahead of them in the development process ?
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A. export orientation

B. commodity expansion

C. flying geese

D. import substitution

6825. Suppose that the demand curve for tin is highly inelastic. If the supply curve of tin decrease and increase cyclically along the demand curve for tin then in this market the size of the price fluctuation will be __________ the size of the quantity fluctuations?
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A. the same as

B. relatively less than

C. any of the above

D. relatively greater then
6826. Economic growth occurs because ?
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A. labor forces increase

B. capital stocks increase

C. All of the above

D. new inventions increase productivity

6827. All of the following are trade problems of developing countries except?
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A. improving terms of trade

B. highly elastic demand curves for their products

C. unstable export markets

D. limited access to the markets of industrial countries

6828. Suppose that the firms collude and become a cartel The best level of output for the cartel as a whole is ___________ the price equals __________ and profits total __________?
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A. 2 million barrels per day, $100, $60 million

B. 6 million barrels per day, $60, $60 million

C. 4 million barrels per day, $80, $160 million

D. 8 million barrels per day, $40, $20 million

6829. Most of developing-country exports consist of ?
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A. labor-intensive agricultural products

B. primary products such as tin and bauxite

C. labor-intensive manufacturing products

D. intermediate products

6830. Which of the following strategies have developing countries not used to deal with the problem of unstable export markets ?
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A. production and export controls

B. multilateral contracts

C. tariff-rates quotas

D. buffer stock arrangements

6831. The OPEC oil cartel ?
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A. has shown that is easy to achieve cooperation among cartel members

B. was successful in raising oil prices in the 1970s but was disbanded in the 1980s

C. has shown greater success in realizing profits during periods of global recession

D. has had a level of success in raising oil prices that other developing countries are unlikely to achieve with other primary commodities
6832. _________ policies attempt to foster industrialization by establishing high barriers to imports of foreign goods to promote local production ?
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A. absolute advantage

B. export-led growth

C. comparative advantage

D. import substitution
6833. Import substitution is an example of ?
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A. the principle of absolute advantage

B. an outward-looking growth strategy

C. the principle of comparative advantage

D. an inward-looking growth strategy
6834. Which industrialization policy have developing countries used which places emphasis on the comparative advantage principle as a guide to resource allocation ?
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A. export promotion

B. international commodity agreements

C. import promotion

D. multilateral contracts

6835. The arrangement where goods imported from trading partners in the developing world are subject to lower tariff rates than goods from other countries is referred to as ?
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A. most favored nation status

B. Generalized System of Preferences

C. normal trade relation status

D. offshore assembly provisions

6836. Suppose that the supply curve of tin is highly inelastic. If the demand curve of tin decrease and increase cyclically along the supply curve of tin, then in this market the size of the quantity fluctuation will bathe size of the price fluctuations ?
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A. the same as

B. relatively less than

C. Any of the above

D. relatively greater than

6837. An example of public good is ?
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A. a beautifully landscaped lawn.

B. a book

C. a public utility.

D. preservation of wetlands
6838. In terms of execution style a family seated at the dinner table enjoying the advertised product would be an example of which of the following types of advertising ?
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A. Lifestyle

B. Mood or imagery

C. Slice of life

D. Personality symbol

6839. One common misuse of marketing research findings in contemporary business is the tendency for marketing research tp ?
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A. become a vehicle for pitching the sponsors products

B. become a means of unfair competition

C. become a means for raising prices

D. become a vehicle for pitching the sponsors products

6840. Externalities are a problem only if ?
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A. the externalities are negative

B. decision makers do not take them into account

C. all firms are perfectly competitive

D. all firms are monopolistic