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
1851. Where a tax can be shifted, the incidence depends on ?
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A. how many producers there are:

B. Whether there is perfect or imperfect information

C. elasticities of demand and supply

D. who is legally obliged to pay the tax

1852. Given recent information about growth trends and growth potential of ethnic populations within the U.S market which of the following ethnic groups would be a best bet to double during the next half century and become one of the U.S markets most viable segments ?
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A. Western Europeans

B. Hispanics and Asians

C. African Americans

D. Middle Eastern

1853. Anything that can be offered to a market for attention acquisition, use, or consumption that might satisfy a want or need is called a(n) ?
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A. demand

B. service

C. product

D. idea

1854. Which of the following is a possible government objective as opposed to a policy ?
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A. Lower taxation rates

B. Lower interest rates

C. Lower government spending

D. Lower inflation

1855. ________ are ads that appear while subscribers are surfing online services or Web sites, including banners, pop-up windows, tickers and roadblocks?
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A. Online bullets

B. Online infomercials

C. Online ads

D. Online broadcasts

1856. Aggregate supply is the total amount ?
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A. of goods and services produced in an economy.

B. of labour supplied by all households

C. produced by the government

D. of products produced by a given industry.

1857. The __________ is a person within a reference group who because of special skills knowledge personality or other characteristics exerts influence on others ?
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A. opinion leader

B. facilitator

C. social role player

D. referent actor

1858. The place in the business buying behavior model where interpersonal and individual influences might interact is called the ?
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A. stimuli

B. buying center

C. environment

D. response

1859. If a government uses barriers to foreign products such as biases against a foreign companys bids or product standards that go against a foreign companys product features the government is using ?
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A. nontariff trade barriers

B. exchange facilitators

C. Protectionism

D. exchange controls

1860. _________ is a principle of enlightened marketing that requires that a company seek real product and marketing improvements ?
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A. Consumer oriented marketing

B. value marketing

C. Innovative marketing

D. Sense of mission marketing

1861. A movement along the demand curve may be caused by ?
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A. A change in advertising

B. A shift in supply

C. A change in the number of buyers

D. A change in income

1862. The record of a countys transfers of shareholding property and bank deposits to and from abroad is called its ?
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A. financial account on the balance of payments.

B. balance of payments

C. balance of payments on current account

D. capital account of the balance of payments

1863. The ______ holds that consumers will favor products that are available and highly affordable (therefore, work on improving production and distribution efficiency) ?
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A. production cost expansion concept

B. production concept

C. product concept

D. marketing concept

1864. Government policies that focus on changing interest rates are called ?
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A. fiscal policies

B. supply-side policies

C. monetary policies

D. incomes policies

1865. A good example of a public good is ?
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A. rail transport

B. the national health service

C. national defence

D. public transport

1866. The type of salesforce structure in which the sales force sells along product lines is called a ?
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A. territorial salesforce

B. customer salesforce

C. retail salesforce

D. product salesforce
1867. Within the circular flow of income, an increase in domestic income will tend to increase ?
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A. inventories

B. exports

C. imports

D. taxes
1868. If a company (considering its options on the product/market expansion grid) chooses to move into different unrelated fields (from what it ha ever done before) with new products as a means to stimulate growth the company would be following which of the following general strategies ?
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A. market penetrations

B. market development

C. diversification

D. product development

1869. If VAT rates rise, then costs are likely to ___ and demand is likely to ____?
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A. fall; rise

B. rise; fall

C. fall; fall

D. rise; rise

1870. Externalities arise because there is a divergence between ________ and _________?
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A. insiders, outsiders

B. social costs, social benefit

C. private costs, social costs or benefits

D. private costs, private benefits

1871. When the $/ exchange rate rises the pound _____ and when the $/ rates falls the pound ________?
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A. depreciates, appreciates

B. revalues, devalues

C. becomes more expensive becomes cheaper

D. appreciates, depreciates
1872. In a free market system rationing occurs when there are increases in ?
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A. quantity

B. price

C. supply

D. demand

1873. Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by ?
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A. An fall in demand

B. improvements in production technology

C. An increase in supply

D. An increase in demand
1874. If the price of good is equal to the equilibrium price ?
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A. there is a shortage and the price will fall

B. there is a surplus and the price will fall

C. the quantity demanded is equal to the quantity supplied supplied and the price remains unchanged

D. there is a shortage and the price will rise

E. there is surplus and the price will rise

1875. A shift in supply will have more effect on price than quantity if ?
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A. The price elasticity of supply is 2

B. The price elasticity of supply is 0.2

C. The price elasticity of supply is 3

D. The price elasticity of supply is infinity

1876. Reducing inflation is a more important objective than economic growth is an example of ?
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A. Reality economics

B. Positive economics

C. Objective economics

D. Normative economics

1877. We cannot say whether one allocation of resources is better than another allocation because ?
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A. some people may not be permanent resident

B. We cant make value judgments to compare different peoples welfare

C. some people cant count

D. not all economic activity is legal

1878. In the short run the level of floating exchange rates is determined mainly by ?
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A. competitiveness

B. interest rates

C. trade

D. speculation
1879. An example of an indirect tax is ?
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A. VAT

B. inheritance tax

C. income tax

D. a tax on profits

1880. Which of the following is macroeconomic issue ?
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A. The price of houses in karachi

B. The level of unemployment is pakistan

C. The wage rate for plumbers in Islamabad

D. Your decision to work or stay at home
1881. An allocation is Pareto-efficient if no reallocation of resources would make some people _______ without making others ________?
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A. equal, unequal

B. better off; better off

C. better off; worse off

D. worse off; worse off

1882. If a maximum price is set below equilibrium there will be ?
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A. Excess demand

B. Excess supply

C. A price fall

D. A price increase

1883. According to the price/quality strategy matrix when a company overprices its product in relation to its quality it is considered to be using which type of strategy ?
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A. Overcharging strategy

B. Premium strategy

C. Snob strategy

D. Good-value strategy

1884. If an increase in the price of blue jeans leads to an increase in the demand for tennis shoes, then blue jeans and tennis shoes are ?
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A. none of these answers

B. normal goods

C. Complements

D. inferior goods

E. Substitutes
1885. The labour force can be defined as ?
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A. anyone who is working or actively seeking work

B. Those who could claim benefit if they were to become unemployed.

C. The population between school leaving age and retirement age.

D. Those of working age who are seeking work and are available to for work at current wage rates.
1886. Wal-Mart owned Sams club is an example of a retail called a(n) ?
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A. factory outlet

B. warehouse club

C. seconds store

D. super specialty store

1887. Moral hazard means that the act of insuring ____ that the desired outcome will occur?
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A. reduces the likelihood

B. guarantees

C. none of the above

D. increases the likelihood
1888. If the price in a market is fixed by the government above equilibrium ?
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A. There is equilibrium

B. There is excess equilibrium

C. There is excess demand

D. There is excess supply
1889. Setting the promotion budget so as to match the budgets of the competition is characteristic of which of the following budget methods ?
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A. Objective and task method

B. Percentage of Sales method

C. Affordable method

D. Competitive parity method
1890. A decrease in demand for a products should ?
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A. increase equilibrium price and quantity

B. Decrease equilibrium price and increase quantity

C. Increase equilibrium price and decrease quantity

D. Decrease equilibrium price and quantity
1891. Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ?
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A. decrease taxes, which shifts the aggregate demand curve to the right

B. decrease taxes, which shifts the aggregate demand curve to the left

C. decrease government spending Which the shifts the aggregate demand curve to the left

D. decrease government spending which shifts the aggregate demand curve to the right

1892. An increase in demand for a product should ?
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A. Increase equilibrium price and quantity

B. Decrease equilibrium price and increase quantity

C. Decrease equilibrium price and quantity

D. Increase equilibrium price and decrease quantity

1893. The reason for the kinked demand curve is that ?
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A. The oligopolist believes that competitors will match output increase but not output reduction

B. The oligopolist believes that competitors will match price increase but not output increase

C. The oligopolist believers that competitors will match price cuts but not price rises

D. The oligopolist believes that competitors will match price increase but not output reduction

1894. Technological advances, shifts in consumer tastes, and increased competition all of which reduce demand for a product are typical of which stage in the PLC ?
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A. decline stage

B. growth stage

C. introduction stage

D. maturity stage

1895. If Pakistans incomes rise faster than those in most other countries the the exchange value will tend to ?
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A. depreciate

B. not be affected

C. fluctuate more than it would do otherwise

D. appreciate

1896. All of the following shift the supply of watches to the right except ?
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A. All of these answers cause an increase in the supply of watches

B. a decrease in the wage of workers employed to manufacture watches

C. an increase in the price of watches

D. an advance in the technology used to manufacture watches

1897. Suppose there is an increase in the both the supply and demand for personal computers Further, suppose the supply of personal computer increase more than demand for personal computers In the market for personal computers i the market for personal computers, we would expect ?
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A. the equilibrium quantity to rise and the equilibrium price to rise

B. the equilibrium quantity to rise and the equilibrium price to fall

C. the equilibrium quantity to rise and the equilibrium price to remain constant

D. the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous

E. the change in the equilibrium quantity to be ambiguous and the equilibrium price to fall.

1898. The purpose of strategic planning is to find ways in which the company can best ?
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A. overcome losses

B. avoid the expense of costly research and development while still getting the benefits

C. use its strengths to take advantage of attractive opportunities in the environment

D. avoid paying taxes

1899. Suppose both buyers and sellers of wheat expect the price of wheat to rise in the near future. What would we expect to happen to the equilibrium price and quantity in the market for wheat today ?
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A. The impact on both price and quantity is ambiguous

B. Price will decrease, quantity is ambiguous.

C. price will increase, quantity will decrease

D. price will increase, quantity is ambiguous.

E. Price will increase, quantity will increase

1900. A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user is called a(n) ?
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A. logistics

B. retailer

C. wholesaler

D. distribution channel