economics MCQs – Page 366

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 Review each marked answer and report any item that may be outdated or unclear.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
7301. The developed nations have only about 15% of the worlds population, but they are estimated to consume _______ of the worlds output ?
comments icon0
A. 80%

B. 50%

C. 65%

D. 25%

7302. Most of the Third World/Fourth World debt was incurred in ?
comments icon0

A. the early 1960s

B. The colonial period

C. most debt was incurred during the oil shocks of the 1970s

D. The early 1950s

7303. An agreement between a borrower country and the International Monetary Fund in which the country agrees to revamp its economic policies to provide incentives for higher export earnings and lower imports is a ?
comments icon0

A. program for growth

B. debt rescheduling agreement

C. stabilization program

D. debt service agreement

7304. Structuralist economists who study developing countries focus their attention on ?
comments icon0

A. changes in industrial structure over time

B. the caste of class structure and discrimination in the labor market

C. specific barriers to development and how to overcome them

D. The impact of international trade structures on developing countries

7305. A policy of developing local industries that can compete with imports is referred to as ?
comments icon0

A. export promotion

B. industrial promotion

C. unbalanced growth

D. import substitution
7306. Many developing countries instituted import substitution policies because ?
comments icon0
A. their terms of trade were deteriorating

B. their terms of trade were improving

C. the price of goods they exported were increasing

D. the prices of the goods they imported were falling

7307. Which of the following factors has been suggest as an explanation for the lack of economic growth in many poor nations ?
comments icon0

A. An adequate level of social overhead capital

B. The supply of human resources is too high

C. The constraints imposed by dependency on the already-developed nations

D. A steady rate of capital formation

7308. Developing countries, if compared with other countries, have ?
comments icon0

A. a greater degree of equality in the income distribution

B. a lower rate of illiteracy

C. a lower infant mortality rate

D. a smaller percentage of the labor force in urban areas
7309. The term Fourth World has been coined to describe ?
comments icon0

A. Countries that still have a communist government like China and Cuba

B. countries that have fallen far behind the economic advances of the rest of the world

C. The republics of the former Soviet Union

D. the newly industrialized countries like Korea, Taiwan Malaysia

7310. Low agricultural productivity in developing countries is mainly caused by ?
comments icon0
A. shortages of inputs including land

B. an over-investment in farm equipment

C. a lack of effective demand for food products

D. migration from rural areas to urban areas

7311. The term Fourth World has been coined to describe ?
comments icon0
A. countries that have fallen far behind the economic advances of the rest of the world

B. Countries that still have a communist government like China and Cuba

C. the newly industrialized countries like Korea, Taiwan Malaysia

D. The republics of the former Soviet Union

7312. The policy that has been the most successful in increasing agricultural output in developing countries is ?
comments icon0

A. produce marketing boards

B. import substitution

C. land reform

D. mechanization

7313. Debt-re-scheduling is ?
comments icon0

A. regular payments of interest and repayments of capital

B. a program of austerity measures agreed with the IMF to make repayment possible

C. a change in debt repayment due to inability to pay

D. an agreement with the World Bank to turn some of a debt into other forms

7314. Experiences over the last three decades has suggested that in order for economic development to occur, it is necessary for an economy to ?
comments icon0

A. stress agricultural development over industrial development

B. promote industrial development over agriculture

C. use a balanced strategy that promotes both agricultural and industrial development

D. stress the importation of agricultural products and the export of manufactured goods

7315. OECD stands for ?
comments icon0

A. Open Economies Caucus on Development

B. Oil Exporting Countries Development

C. Organization for Economic Cooperation and Development and Development

D. Organization for Environmental cooperative Department

7316. The Vicious circle theory states that ?
comments icon0

A. low income levels create pressure for cheap imports

B. growing government assistance create addiction to welfare programs

C. low per capita incomes creates low savings that keep incomes low

D. low income levels create pressure for money creation

7317. The synchronized application of capital to a wide range of different industries is called __________ by its advocates?
comments icon0

A. indivisibilities

B. balanced growth

C. elasticity of capital

D. capitalization

7318. For Rosentein Rodan a major indivisibility is in ?
comments icon0
A. infrastructure

B. agriculture

C. Supply

D. services

7319. One criticism of Rostows theory of economic growth is that ?
comments icon0

A. his hypothesis of the stages of growth is difficult to test empirically

B. there is no explanation of why growth occurs after takeoff

C. All of the above are correct

D. much available data contradicts his thesis about the takeoff stage

7320. Rostows economics stages are ?
comments icon0

A. the learning curve the age of high mass consumption post takeoff, and the drive to maturity

B. the preconditions for consumption the replication the drive to maturity and the age of high mass consumption

C. The traditional society the preconditions for takeoff, the takeoff, the drive to maturity and the age of high mass consumption

D. The preconditions for takeoff, the takeoff, the drive to maturity and the age of creative destruction