economics MCQs – Page 391

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 Review each marked answer and report any item that may be outdated or unclear.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 economy 2. profit maximizing under perfect competition and monopoly 3. application of economics 4. the aggregate demand aggregate supply model 5. surplus 6. money interest rates and output 7. average and total cost 8. stabilization adjustment reform and privatization 9. risks and diversification efficient market hypothesis 10. the phillips curve 11. supply and demand 12. capital formation investment choice information technology and technical progress 13. aggregate supply unemployment and inflation 14. elasticity 15. comparative gdp 16. roots of modern macroeconomics 17. production factors 18. poverty malnutrition and income inequality 19. trade regulations and industrial policies 20. monetary union 21. exchange rate systems and currency crises 22. economic development in historical perspective 23. exchange rate determination 24. monopoly competition 25. the balance of payments 26. inflation productivity 27. macroeconomic issues and analysis 28. employment migration and urbanization 29. macroeconomic policy tools 30. supply side policies 31. exchange rate adjustments and the balance of 32. miscellaneous 33. taxation 34. trade policies for the developing nations 35. markets efficiency and the public interest 36. the external debt and financial crises 37. budget deficits and the trade balance 38. alternative theories of the firm 39. public goods 40. the meaning and measurement of economic development 41. characteristics and institutions of developing countries 42. agriculture irrigation system of pakistan 43. education health and human capital 44. economic problems of developing countries 45. theories of economic development 46. basic of economics 47. consumer theory vs real consumers 48. applied microeconomics 49. long term economic growth 50. externality internality 51. fiscal and monetary policy 52. prices wages taxes 53. balance of payments aid and foreign investment 54. international factor movements and multinational corporations 55. entrepreneurship organization and innovation 56. the international economy and globalization 57. population and development 58. non tariff trade barriers 59. foundations of modern trade theory 60. global economic development 61. market 62. rural poverty and agricultural transformation 63. regional trading arrangements 64. foreign exchange 65. introduction to economics 66. world economy miscellaneous 67. sources of comparative advantage 68. natural resources and the environment toward sustainable development 69. monopoly 70. asymmetric information 71. income inequality 72. labour market 73. tariffs 74. development planning and policy making the state and the market 75. oligopoly 76. industrial development 77. costs supply and perfect competition 78. human capital 79. monetary fiscal and incomes policy and inflation 80. stocks

7801. Evidence suggests that the price elasticity of demand for motoring is ?
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A. absolutely inelastic

B. inelastic

C. Unitarily elastic

D. Elastic

7802. Sales staff are keen to sell extended warranties because ?
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A. they are paid commission on each extended warranty they sell.

B. the cost of repair will usually exceed the cost of the warranty

C. They are concerned about customer satisfaction.

D. extended warranties offer value for money.

7803. Supporters of antimonopoly enforcement argue that the real gain from such enforcement ?
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A. is that it forces firms to produce efficiently.

B. is that if encourages firms to engage in research which leads to new products

C. is the revenue generated from the fines paid by those individuals who are found guilty of antitrust violation?

D. Is that this policy serves to deter firms from engaging in such practices as collusion, price-fixing and deceptive advertising

7804. Economists use the term regulatory capture to mean a situation where the private sector firms being regulated ?
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A. Persuade the government to change the regulatory regime.

B. Persuade the regulator to act in the firms interests.

C. Persuade the regulator to operate in the industrys interests

D. Bribe the regulator.

7805. A horizontal merger is a merger of?
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A. firms producing the same product

B. firms producing complementary products

C. firms producing unrelated products

D. firms at various stages in a production process.

7806. The theory of the second best suggests that in the absence of perfect competition a privatized industry should charge a price of ?
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A. p = Z

B. p = MC

C. P = MC Z

D. P = MC + Z

7807. In the country X it is now becoming possible to buy electricity from a gas company and gas from an electricity company. This is called ?
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A. natural monopoly.

B. cross-subsidization.

C. deregulation

D. making markets contestable

7808. A merger in which firms at various stages in a production process combine is a ?
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A. horizontal merger

B. vertical merger

C. production merger

D. conglomerate merger.

7809. A firm charging different buyers different prices for the same product is practicing ?
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A. price fixing.

B. Price discrimination

C. price discounting.

D. Competitive pricing.

7810. Antimonopoly legislation is undertaken to ____ competition and market regulation is undertaken to ____ competition ?
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A. restrict; promote

B. promote; promote

C. restrict; restrict

D. promote; restrict

7811. Between 1990 and 1999 car ownership per thousand of the population fell in ?
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A. Belgium

B. USA

C. Spain

D. UK

7812. Antimonopoly laws are based on the proposition that ?
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A. competition is the best way to achieve efficiency.

B. increasing market power is the best way to achieve efficiency.

C. public ownership is the best way to achieve efficiency

D. regulation is the best way to achieve efficiency.

7813. Spending on motoring as a % of household expenditure in the UK shows that motoring is ?
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A. a potential public good

B. a superior good

C. an inferior good

D. Environmentally damaging

7814. Which city has the following transport policy ?
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A. Singapore

B. London

C. Car licenses are very expensive vehicle entry to the city center is very restricted road pricing is being introduced and modern cheap rail transport is being expanded.

D. New York

E. Athens

7815. A merger between a paper producer and a book publisher is an example of?
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A. a complementary products merger.

B. a horizontal merger

C. a conglomerate merger.

D. a vertical merger

7816. A combined measure of productivity that takes account of both labor and capital productivity is known as ?
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A. labour/capital productivity

B. total productivity

C. total exploitation

D. total factor productivity