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
1751. Lower interest rates are likely to ?
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A. Decrease consumption

B. Encourage saving

C. Increase spending

D. increase cost of borrowing
1752. In perfect price discrimination ?
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A. Consumer surplus is maximised

B. Community surplus is maximised

C. Consumer surplus is zero

D. produce surplus is zero
1753. The property tax wealth tax inheritance tax and income taxes such as persona and corporate taxes are ?
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A. indirect taxes

B. inelastic

C. direct taxes

D. value-added tax

1754. If the price elasticity of demand for a product in market A is -0.2 and in market B is -3 a price discriminator will charge ?
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A. The higher price in market A

B. The higher price in market B

C. The same Price in both markets

D. Cannot tell which price will be higher

1755. Total revenue equals ?
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A. Price multiplier by quantity sold

B. Price minus quantity sold

C. Price divided by the quantity sold

D. Price plus quantity

1756. In Price discrimination abnormal profits are made if ?
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A. Average revenue is greater than average variable cost

B. Average revenue is greater than average cost

C. Average revenue is greater than marginal revenue

D. Average revenue is greater than average fixed cost

1757. The liquidity trap occurs when the demand for money ?
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A. Means that an increase in money supply leads to a fall in the interest rate

B. Means that an increases in the money supply leads to an increases in the interest rate

C. Is perfectly interest inelastic

D. Is perfectly interest elastic
1758. The type of sales presentation approach that requires good listening and problem-solving skills is the ?
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A. critical-thinking approach

B. formula appraoch

C. canned approach

D. need-satisfaction approach
1759. Markets fail to produce an efficient allocation of resources, but government also fail because ?
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A. the optimal level of public goods may be too expensive for the society to produce

B. the measurement of social damages and benefits is difficult and imprecise

C. elected officials will act selflessly for the good of society and ignore their own self interest

D. the managers of government agencies are trying to maximize the profit of their agency and they ignore the implications that this has on other departments

1760. Consumer goods with unique characteristics or brand identification often requiring a special purchase effort are called?
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A. shopping products

B. specialty products

C. convenience products

D. custom products

1761. A company faces several major decisions in international marketing the first of these decisions is often ?
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A. deciding which markets to enter

B. deciding how to enter markets

C. deciding whether to go international

D. looking at the global marketing environment
1762. Conflicts between different levels of the same channel of distribution are referred to as ?
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A. parallel conflicts

B. vertical conflicts

C. layer-based conflicts

D. horizontal conflicts

1763. A child in the United States is normally exposed to all of the following values EXCEPT ?
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A. material comfort

B. achievement ans success

C. activity and involvement

D. collectivism
1764. A(n) ________ is a name term sign symbol or design, or a combination of these that identifies that maker or seller of a product or service ?
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A. logo

B. sponsorship

C. Product feature

D. brand
1765. The marginal propensity to consume is equal to ?
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A. Total consumption / total income

B. change in consumption / change in income

C. Change in consumption / change in savings

D. Total spending / total consumption
1766. The conclusion that free, unregulated markets will produce an efficient outcome breaks down if ?
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A. all of the above

B. households do not have perfect information

C. firms are not price takers in input markets

D. firms are not price takers in the output market

1767. The most logical budget setting method is found in the list below. Which is it ?
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A. Competitive parity method

B. Percentage of sales method

C. Objective and task method

D. Affordable method

1768. A reflationary policy ?
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A. Reducing taxation rates

B. Reducing government spending

C. Reducing interest rates

D. increase injections

1769. Drop shippers perform which of the following functions ?
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A. Stocks the bread rack in a grocery store

B. Sells jewelry out of a catalog

C. Maintains, owns and stocks a CD display in a grocery store

D. Assumes title and ships coal, lumber or heavy equipment to a buyer
1770. If an economy is productively efficient ?
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A. More of one product can only be produced if less of another product is produced

B. Everyone is wealthy

C. Resources are unemployed

D. The distribution of income is eqal

1771. Which of the following is NOT true ?
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A. Taxes on international trade are the major source of tax revenue for low-income countries with poor administrative capacity

B. several LDCs have used value-added taxes to raise a substantial fraction of revenues

C. import duties can restrict luxury goods consumption

D. Cascade tax a form of progressive tax, is dominant in DCs
1772. The proportion of an increase in national income paid in tax is ?
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A. the tax multiplier

B. the marginal tax propensity

C. the average tax propensity

D. the fiscal stance

1773. The shrinking or distances due to technological advances such as computer and fax connections by telephone are one characteristic of what new challenge to marketing ?
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A. The call for more socially responsible marketing

B. The micro-chip revolution

C. The changing world economy

D. Rapid globalization
1774. If injections are greater than withdrawals ?
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A. National income will increase

B. National income will stay in equilibrium

C. National income will decrease

D. Price will fall

1775. Externalities are a problem only if ?
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A. decision makers do not take them into account

B. all firms are monopolistic

C. the externalities are negative

D. all firms are perfectly competitive

1776. A way of helping depressed regions by having wage subsidies lower business taxes and capital subsidies has been suggested as ?
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A. interventionist policies

B. monetarists

C. left-wing theorists

D. New classical economists

1777. The total number of item that the company carries within its product lines refers to the ________ of the product mix?
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A. consistency

B. width

C. length

D. depth

1778. The typical method of retail operation used by supermarkets and catalog showrooms is called ?
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A. self-service retailing

B. full-service retailing

C. service merchandiser

D. limited-service retailing

1779. If the marginal revenue is less than the marginal cost then to profit maximise a firm should ?
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A. Leave output where it is:

B. Increase costs

C. Reduce output

D. Increase output

1780. The statement everything affects everything else reflects the principle behind ?
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A. equity analysis

B. efficiency analysis

C. partial equilibrium analysis

D. general equilibrium analysis
1781. fiscal incentives to attract businesses from abroad include ?
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A. accelerated depreciation

B. lower tax rates for reinvested business profits

C. tax holidays

D. #NAME?

1782. The total quantity of goods and services produced (or supplied) in an economy in a given period is ?
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A. aggregate output

B. aggregate expenditure

C. aggregate demand

D. aggregate investment

1783. Injections ?
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A. Decrease aggregate demand

B. include investment and export spending

C. Always equal savings

D. Always equal national income
1784. ________ consists of dividing a market into distinct groups of buyers on the basis of needs, characteristics or behavior who might require separate products or marketing mixes?
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A. Product differentiation

B. Market positioning

C. Market targeting

D. Market segmentation
1785. If Toyota describes one of its cars of the future as being a moderately priced subcompact designed as a second family car to be used arround town; the car is ideal for running errands and visiting friends, then the company has just stated a potential new product in terms of a(n) ?
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A. Product image

B. Product features

C. Product idea

D. Product concept
1786. If two countries A and B are member of a currency union and there is a shift in consumer preferences away from the goods of country A and towards those of country B than which one of the following would help to offset the effect of the resulting changes in aggregate demand in A and B on inflation and unemployment in the tow countries ?
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A. A low degree of capital mobility between the two countries

B. An increase in government spending in country (A)

C. A depreciation in the foreign exchange value of the common currency

D. A high degree of labour mobility between the tow countries
1787. To reduce the supply of money the government could ?
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A. Encourage banks to lend

B. Reduce interest rates

C. Buy back government bonds

D. Sell government bonds

1788. The law of diminishing returns assumes ?
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A. Utility is maximised when marginal product falls

B. There are no variable factors of production

C. There are no fixed factors of production

D. Some factors of production are fixed

1789. If people with higher incomes pay a higher percentage of income in taxes, the income tax structure is ?
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A. regressive

B. excise taxes

C. progressive

D. value added taxes (VAT)

1790. What is fiscal federalism ?
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A. A fiscal system for a group of countries in which government budget deficits are strictly limited

B. A fiscal system for a group of countries in which fiscal policy is set in a treaty signed by all the countries

C. A fiscal system for a group of countries involving a common fiscal budget and a system of taxes and fiscal transfers across countries

D. A fiscal system in which fiscal policy is jointly determined by local and national politicians

1791. Disposable income is the part of households income left after the deduction of ?
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A. income tax

B. income tax and social security payments

C. taxes and the addition of benefits

D. contractual payments such as pensions and mortgages

1792. To maximise growth without making a loss a firm should produce the highest output where ?
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A. Marginal revenue equals marginal cost

B. Average revenue equals average cost

C. Average revenue equals marginal cost

D. Average cost equals marginal cost

1793. successful ________ depends on how well a company blends its people organizational structure decision and reward systems, and company culture into a cohesive program that supports its strategies?
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A. marketing strategy

B. marketing implementation

C. marketing analysis

D. marketing control

1794. The ratio of change in the equilibrium level of output to a change in some autonomous variable is the ?
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A. multiplier

B. marginal propensity of the autonomous variable

C. elasticity coefficient

D. automatic stabiliser

1795. All of the following are methods by which a company can divide up its sales responsibilities EXCEPT ?
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A. product sales force structure

B. territorial sales force structure

C. pychographic trait sales force structure

D. customer sales force structure

1796. The internet evolved from a network created by ________ during the 1960s?
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A. Northwestern University

B. the Defense Department

C. the Massachusetts institutes of Technology (MIT)

D. the Commerce Department

1797. ________ is the process of evaluating each market segments attractiveness and selecting one or more segments to enter?
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A. Market segmentation

B. Market positioning

C. Market targeting

D. Mass marketing

1798. Economic growth can be measured by ?
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A. The CPI

B. MPC

C. The CBI

D. GDP

1799. Which best describes price discrimination ?
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A. Charging different prices for different products

B. Charging different prices for the same products

C. Charging the same prices for same products

D. Charging the same prices for different products
1800. The first level of output at which the long run average cost are minimized is called ?
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A. The Minimum External Scale

B. The Maximum External Scale

C. The Minimum Efficient Scale

D. The Maximum Effective Scale