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
1701. As the MPS increases the multiplier will ?
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A. increase

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

C. remain constant

D. decrease
1702. When an international seller sells a plant equipment or technology to another country and agrees to take payment in the resulting products, it is called?
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A. buy-back

B. barter

C. counterpurchase

D. like-value-exchange

1703. Which of the following is NOT one of the five stages of the buyers decision process?
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A. purchase decision

B. brand identification

C. information search

D. need recognition

1704. If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 total consumption is what ?
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A. 810

B. 800

C. 0.81

D. 0.8
1705. The whole class of goods that will be under produced or not produced at all in a completely unregulated market economy are referred to as ?
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A. Pareto goods

B. public goods

C. free goods

D. private goods

1706. An outward shift in the demand for money other things being equals should lead to ?
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A. A higher interest rate but the same quantity of money

B. A higher quantity of money but lower interest rates

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

D. A lower interest rate but the same quantity of money

1707. ___________ is a strategy of using a successful brand name to launch a new of modified product in a new category ?
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A. Duobranding

B. Multibranding

C. Brand extension

D. Line extension

1708. Injections are?
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A. Decrease the investment into an economy

B. Decrease aggregate demand

C. Assumed to be exogenous

D. Assumed to be a function of national income

1709. If banks and the private sector decide to hold less cash the money multiplier will be ?
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A. Smaller

B. Unchanged

C. Larger

D. Unstable

1710. If the price is less than the average costs but higher than the average variable costs ?
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A. The firm is making a profile

B. The firm is making a loss and will shutdown in the short term

C. The firm is making a loss and is making a negative contribution to fixed costs

D. The firm is making a loss but will continue to produce in the short term
1711. The marginal propensity to withdraw is ?
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A. 1-(1/injections multiplier

B. the proportion of national income that is withdraw from the circular flow of income

C. MPS + MPT + MPM

D. 1/investment multiplier

1712. Investment is ?
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A. A withdrawal that increase aggregate demand

B. An injection that decreases aggregate demand

C. An injection that increases aggregate demand

D. A withdrawal that decrease aggregate
1713. To try to overcome the free rider problem, the members of EMU signed ?
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A. the European solidarity packs

B. the exchange rate mechanism pact

C. the stability and growth pack

D. the responsibility and growth pack

1714. Labour Productivity measures ?
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A. Marginal output

B. Total output

C. The output per machine

D. The output per worker

1715. Money has 3 main function they are __________ and __________?
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A. Medium of exchange unit of account IOU

B. Medium of exchange inflation hedge store of value

C. Medium of exchange unit of account store of value

D. IOU , inflation hedge store of value

E. Medium of exchange unit of account store of value

1716. An outward shift of the production possibility frontier may be caused by ?
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A. An increase in demand

B. Productive inefficiency

C. More government spending

D. Better training of employees
1717. The marginal propensity to save (MPS) is ?
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A. the ratio of income to saving

B. the average amount of income that is saved

C. the fraction of a change in income that is saved

D. the ratio of saving to income

1718. Price equals ?
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A. Total quantity sold quantity sold

B. Total revenue quantity

C. Total revenue / quantity sold

D. Total revenue / total cost

1719. Which of the following statements supports deregulation of industries ?
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A. Many instances of government regulation have succeeded in reducing competition in industries where competition may be beneficial

B. All of the above

C. Because few real natural monopolies exist there is rarely a reason for government regulation

D. Technological change has made it possible for many industries to become more competitive

1720. ______ includes practices such as overstating the products features or performance luring the customer to the store for a bargain that is out of stock, or running rigged contests ?
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A. Deceptive packaging

B. Deceptive promotion

C. Deceptive cost structure

D. Deceptive pricing

1721. The accelerator assumes ?
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A. The marginal propensity to consume is constant

B. The multiplier is constant

C. The economy is at full employment

D. There is a constant relationship between net investment and the rate of change of output
1722. To be Productively efficient a firm must produce where ?
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A. Marginal costs are maximized

B. Average costs are minimized

C. Average costs are maximized

D. Marginal costs are Minimized

1723. Assuming there is no government or foreign sector the formula for the multiplier is ?
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A. 1/MPS

B. 1 MPC

C. 1/(1+ MPC)

D. 1/MPC

1724. In terms of special product life cycles a ________ is a basic and distinctive mode expression?
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A. fad

B. genre

C. fashion

D. style
1725. In a boom ?
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A. Prices are likely to fall

B. Unemployment is likely to fall

C. Demand is likely to fall

D. Imports are likely to grow

1726. Central banks in LDCs generally have less effect on expenditure and output than in LDCs because of ?
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A. #NAME?

B. the relative insensitivity of investment and employment to monetary policies

C. an externally dependent banking system

D. a poorly developed securities market

1727. New classical economists advocate reducing welfare payments to people who are unemployed or single parents. The economic reasoning uses was that this would ?
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A. help small businesses

B. weaken the power of trade unions

C. reduce poverty

D. reduce unemployment
1728. __________ is persons distinguishing psychological characteristics that lead to his or her own environment?
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A. Personality

B. Lifestyle

C. Demographics

D. Psychographics

1729. The socially optimal rate of growth is ?
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A. Negative

B. Where the marginal social benefit = the marginal social cost

C. Zero

D. Total social costs are minimised

1730. A significant increase in the government budget deficit is likely to ?
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A. Move the economy away from full employment

B. Boost aggregate demand

C. Reduce national income

D. Reduce injections into the economy

1731. Which one of the following is not a characteristic that reduces the cost of a signals currency ?
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A. A high degree of labour mobility among the countries of the common currency area

B. None of the characteristics described in these answers They are all characteristics that reduce the cost of a single currency

C. A high degree of trade integration among the countries of the common currency area

D. A high degree of capital mobility among the countries of the common currency area

1732. _______ is quoted as saying that everyone lives by selling something?
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A. Arthur Miller

B. Robert Louis Stevenson

C. Henry Ford

D. Bill Gates

1733. It is fact that there are 24 million left-handed people in the United States however most marketers do not attempt to appeal to or design products for this group because there is little in the way of census data about this is group Therefore, this groups fails in one of the requirements for effective segmentation Which of the following is most likely to apply in this case ?
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A. actionable

B. substantial

C. differentiable

D. measurable
1734. Which of the following promotional budget methods wrongly views sales as the cause of promotion rather than as the result ?
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A. Percentage of Sales method

B. Objective and task method

C. Competitive parity method

D. Affordable method

1735. ________ is the practice of adopting policies and developing strategies that both sustain the environment and produce profits for the company ?
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A. Consumerism

B. Environmentalism

C. Environmental sustainability

D. Consumer accountability

1736. The course of a products sales and profits over its lifetime is called ?
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A. the adoption cycle

B. the product life cycle

C. the dynamic growth curve

D. the adoption cycle

E. the sales chart

1737. Inflation is measured by the ?
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A. GDP deflator

B. #NAME?

C. consumer price index (CPI)

D. depreciation

1738. To anticipate what the economy is going to do next the government will look at ?
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A. Leading indicators

B. Lagging indicators

C. Flashing indicator

D. Coincidental indicators

1739. Which of the following is a problem for fiscal policy in a currency union ?
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A. government of the member countries of the currency union may run large budget deficits and so impose costs on other countries by pushing up interest rates on the bonds these countries governments issue

B. It is difficult to raise enough tax revenue to pay for the operation of the currency union

C. The central bank controls interest rates on long-term bonds issued by the governments of the member countries of the currency union

D. Government of the member countries of the currency union may run large budget deficit and so crowd out private investment

1740. If a large number of individuals are affected by an external benefit, private bargaining will not work because of ?
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A. non-rivalry

B. the free-rider problem

C. the fallacy of composition

D. the Coase theorem

1741. The total cost to society of producing an additional unit of a good or service is the ?
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A. marginal private cost

B. marginal social cost

C. marginal damage cost

D. marginal external cost

1742. Each point on the IS curve represents the equilibrium point in the ?
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A. goods market for the given level of government spending

B. money market for the given value of aggregate output

C. goods market for the given interest rate

D. money market for the given level of the money supply

1743. Monetary policy effects the _________ and __________?
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A. stock price, minimum wage

B. money supply, interest rate

C. reserve, unemployment

D. taxes, exchange rate

1744. Profit is measured by ?
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A. Revenue fixed costs

B. Revenue total costs

C. Revenue sales

D. Fixed cost + revenue

1745. Banks create money by ?
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A. printing it

B. lending out part of their deposits

C. issuing debit cards

D. accepting cheques

1746. To be allocatively efficient a firm must produce where ?
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A. The price equals the marginal cost

B. The total cost equals demand

C. The average revenue equals the marginal revenue

D. The price equals the average cost
1747. To maximise sales revenue a firm should produce where ?
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A. Marginal revenue is zero

B. Marginal cost is zero

C. Marginal revenue equals marginal cost

D. Marginal revenue is maximised

1748. During Stagflation ?
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A. #NAME?

B. an increase in aggregate spending will eliminate the recession

C. a decrease in aggregate spending will reduce inflation

D. the central bank decease money supply to reduce inflation

1749. 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 income effect when tax rates are changed

B. There is no substitution effect when tax rates are changed

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

D. The substitution effect of a wage change is greater than the income effect of a wage change
1750. _______ is the concept under which a company carefully integrates and coordinates its may communications channels to deliver a clear consistent and compelling message about the organization and its products?
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A. Integrated international affairs

B. Integrated marketing communications

C. Integrated demand characteristics

D. The promotion mix