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
1901. It is necessary to ration a good whenever ?
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A. demand exceeds supply

B. a surplus exists

C. supply exceeds demand

D. there is perfectly inelastic demand for the good

1902. The percentage of the labour force that is unemployed is the ?
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A. Unemployment population ratio.

B. employment rate

C. Unemployment rate

D. Labour force rate.

1903. Floating exchange rates are ____ in the short run?
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A. depreciating

B. predictable

C. volatile

D. stable

1904. The goal of the marketing logistics system should be to provide ?
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A. A targeted level of customer service at the least cost

B. A targeted level of field support

C. A targeted level of transportation expense ratio

D. A targeted level of promotional support

1905. A shift in demand will have more effect on price than quantity if ?
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A. The price elasticity of supply is + 0.2

B. The price elasticity of supply is + 3

C. The price elasticity of supply is infinity

D. The price elasticity of supply is + 2
1906. Economics say that there has to be some from of rationing whenever ?
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A. merit goods are produced

B. inflation occurs

C. there is excess demand

D. there are externalities

1907. If the market price is below the equilibrium price ?
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A. demand will be less than supply.

B. quantity demanded will be greater than quantity supplied

C. quantity demanded will equal quantity supplied .

D. quantity demanded will be less than quantity supplied

1908. Tax shifting ?
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A. occurs when house hold can alter their behaviour and do something to avoid paying a tax.

B. is the ultimate distribution of a taxs burden

C. is the way in which a tax is structured

D. occurs when taxes cause prices to increase but wages to fall

1909. If the economy is at the peak of the business cycle, aggregate demand ____ unemployment _______ inflation _______ and the current account of the balance of payments is likely to move towards _______?
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A. falls; rises; falls; surplus

B. rise; falls; rise; deficit

C. is static; low; rises; deficit

D. falls; falls; falls; surplus

1910. The last stage in the selling process in the __________ stage?
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A. Approach

B. follow-up

C. handling objections

D. closing

1911. The price mechanism does not act as a ?
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A. Signal

B. Indicator of income

C. Rationing device

D. Incentive

1912. A movement along the supply curve may be caused by ?
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A. A change in the number of producers

B. A change in costs

C. A shift in demand

D. A change in technology

1913. The fact that services are sold, produced and consumed at the same time refers to which of the following service characteristics ?
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A. Perishability

B. Inseparability

C. Intangibility

D. Variability

1914. The first modern environmental movement in the United States began in the ?
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A. 1960s and 1970s

B. 1950s

C. mid-1980s

D. 1940s

1915. All of the following are ways that marketing plays a key role in the companys strategic planning EXCETP ?
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A. within individual business units marketing designs strategies for reaching the units objectives

B. marketing is the only discipline that can provide a formal structure for the planning effort

C. marketing provides inputs to strategic planners by helping to identify attractive market opportunities

D. marketing provides a guiding philosophy

1916. More and more salespeople are being evaluated and compensated based on different measures than in the past. All of the following are illustrations of those measures EXCEPT ?
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A. full customer service

B. retention rates

C. long term customer sanctification

D. competitive predatory pricing performance
1917. Unemployment resulting from changes in the pattern of demand or supply in the economy is called _______ unemployment?
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A. regional

B. technological

C. structural

D. demand-deficient

1918. If demand increase in a market this will usually lead to ?
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A. A higher equilibrium price and output

B. A lower equilibrium price and higher output

C. A lower equilibrium price and output

D. A higher equilibrium price and lower output

1919. A public good will ?
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A. Has no opportunity cost

B. Not be provided in the free market

C. Be over provided in the free market

D. Be under provided in the free market

1920. According to the text the most dramatic of the environments that affect marketing and appears to be now shaping our world is the ___________ environment?
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A. demographic

B. economic

C. natural

D. technological
1921. Which of the following can the government not use directly to control the economy ?
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A. Benefits available for the unemployed and sick

B. pay rates in the public sector

C. Pay rates within the private sector

D. investment in education

1922. The record of countrys imports and exports of goods and services is called its ?
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A. balance of payments.

B. visible trade balance

C. balance of trade

D. balance of payments on current account

1923. If your company were to make a product such as a suit of clothes and sold that product to a retailer your company would have sold to the __________ merket?
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A. service

B. business

C. reseller

D. government

1924. A price ceiling is ?
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A. a maximum price usually set by government that sellers may charge for a good

B. a minimum price that consumers are willing to pay for a good.

C. the different between the initial equilibrium price and the equilibrium price after a decrease in supply

D. a minimum price usually set by government that sellers must charge for a good

1925. Even through buying roles in the family change constantly the _________ has traditionally been the main purchasing agent for the family?
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A. husband

B. teenage children

C. wife

D. grandparent

1926. In the absence of international capital controls, central banks set ________ to provide the correct incentive for speculators?
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A. income policy

B. money supply targets

C. inflation targets

D. interest rates
1927. In evaluating messages for advertising telling how the product is better than the competing brands aims at making the ad ?
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A. believable

B. distinctive

C. remembered

D. meaningful

1928. Suppose there is an increase in both the supply and demand for personal computers. In the market for personal computers, we would expect?
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A. the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous.

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

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

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

E. the equilibrium quantity to rise and the equilibrium price to rise

1929. All of the following considered to be drawbacks of local marketing EXCEPT ?
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A. it can attract unwanted competition

B. it can create logistical problems when the company tries to meet varied requirements

C. it can dilute the brands overall image

D. it can drive up manufacturing and marketing costs by reducing economies of scale

1930. Taxes creates a wedge between the sales price and purchase price that prevents the price system equating ____ and ______?
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A. demand, supply

B. marginal cost, average cost

C. marginal cost, marginal revenue

D. marginal costs, marginal benefits
1931. Many U.S firms have sought relief from foreign competition by demanding protectionism policies by the U.S government. A better way for companies to compete is to expand into foreign markets and ?
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A. lower prices

B. increase promotion both at home and abroad

C. continuously improve their products at home

D. join into cartels at home

1932. The study of human population in terms of size, density, location age gender, race occupation and other statistics is called ?
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A. Ethnography

B. Geothermy

C. Demography

D. Hemos-popography

1933. A shift in supply will have a bigger effect on price than output if demand is ?
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A. Price inelastic

B. Price elastic

C. income elastic

D. income inelastic

1934. Keynes liquidity preference theory of the interest rate suggests that the interest rate is determined by ?
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A. aggregate supply and aggregate demand

B. the supply and demand for labor

C. the supply and demand for money

D. the supply and demand for loanable funds

1935. One of the most promising developments in multivariable segmentation is called ____ where a host of demographic and socioeconomic factors are used ?
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A. geodemographic segmentation

B. fermagraphic segmentation

C. geothermy segmentation

D. terragraphic segmentation

1936. The practice of going after a large share of a smaller market or subsets of a few markets is called ?
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A. turbo marketing

B. concentrated marketing

C. undifferentiated marketing

D. differentiated marketing

1937. If the Pakistan takes part in a war in the Middle East, then the exchange value of its currency will tend to ?
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A. fluctuate more than if it were at peace

B. depreciate

C. appreciate

D. not be affected

1938. A natural monopoly has a declining _______ over a large range of output?
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A. long run marginal cost

B. short run marginal cost

C. long run marginal cost

D. long run average cost
1939. Rolls Royce uses which of the following distribution formats ?
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A. Open distribution

B. Exclusive distribution

C. Intensive distribution

D. Selective distribution

1940. One common misuse of marketing research findings in contemporary business is the tendency for marketing research tp ?
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A. become a means of unfair competition

B. become a means for raising prices

C. become a vehicle for pitching the sponsors products

D. become a vehicle for pitching the sponsors products
1941. A monetary union means ________, ________ and ________?
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A. a common currency a single central bank, common monetary policy

B. a common currency floating exchange rates common monetary policy

C. permanently fixed capital movements floating exchange rates a fixed structure of interest rates

D. permanently fixed exchange rates, free capital movements, a single interest rates
1942. A _________ is a need that is sufficiently pressing to direct the person to seek satisfaction?
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A. requirement

B. motive

C. want

D. demand

1943. For the Eurozone countries, the most important source of the downward slope of the aggregate demand curve is probably ?
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A. The interest-rate effect

B. The wealth effect

C. The fiscal effect

D. None of these answers

E. The exchange-rate effect

1944. 3M runs a Pollution a Prevention Pays program that has led to a substantial reduction in pollution and costs this would be an example of responding and costs. This would be an example of responding to which of the following ?
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A. The green movement

B. Naders raiders

C. Governmental regulation

D. International competition

1945. If an advertiser wants flexibility timeliness good local market coverage broad acceptability, and high believability the advertiser will probably choose which of the following mass media types ?
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A. Television

B. Direct Mail

C. Newspapers

D. Radio

1946. Which of the following is not a macroeconomic issue ?
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A. Unemployment

B. Inflation

C. Economic growth

D. The wages paid to footballers

1947. When a company enters a new product category for which its current brand names are not appropriate it will likely follow which of the following brand strategies ?
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A. Line extensions

B. New brands

C. Product extensions

D. Brand extensions

1948. An increase in income will ?
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A. Shift the supply curve

B. Lead to an extension of demand

C. Shift the demand curve

D. Lead to a movement along the demand curve

1949. The orange juice manufacturers know that orange juice is most often consumed in the mornings. However they would like to change this and make the drink acceptable during other time periods during the day Which form of segmentation would they need to work with and establish strategy reflective of their desires ?
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A. age and lief-cycle segmentation

B. gender segmentation

C. occasion segmentation

D. benefit segmentation

1950. If the price was fixed below the equilibrium price there would be ?
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A. Excess demand

B. Equilibrium

C. Downward pressure on prices

D. Excess supply