economics MCQs – Page 392

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 Review each marked answer and report any item that may be outdated or unclear.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

7821. Real business cycle theory suggests that ____ not important in explaining short-term fluctuations around actual output ?
0

A. aggregate demand is

B. potential output is

C. aggregate supply is

D. real variables are

7822. Real business cycle theories suggest that _____ to correct departures from the desired growth path?
0

A. There is a role for stabilizing output ever the business cycle

B. There is a role for supply-side policy

C. There is a role for monetary policy

D. There is a role for fiscal policy

7823. Supply side policies are considered effective in ?
0

A. increasing the money supply

B. reducing taxation

C. encouraging technological progress

D. Increasing government expenditure

7824. The impossibility of negative gross investment provides a ______ to fluctuation in ______?
0

A. floor, output

B. ceiling, stock building

C. floor, the capital-output ratio

D. ceiling, capital prices

7825. The belief that the rate of growth depends upon technological progress facilitated by institutions incentives and government is known as ________ growth theory?
0

A. beta

B. endogenous

C. convergence

D. exogenous

7826. The percentage of the working age population that is part of the workforce is known as the ?
0

A. participation rate

B. workers

C. diligent rate

D. non-slackers

7827. In the neoclassical theory of growth a higher saving rate leads to ?
0

A. no change in the growth rate

B. a higher growth rates

C. a fluctuating growth rates

D. a fluctuating growth rate

7828. Identify below what does NOT affect productivity ?
0

A. Private investment in new physical caital

B. The phase of the lunar cycle

C. Public investment in education

D. Innovation and the application of new technology

7829. Economic growth may depend upon _____ and _____?
0

A. Population age distribution, education

B. Population size, x-efficiency

C. Population growth education

D. Population growth technical progress

7830. Policies to encourage productivity do not include ?
0

A. encouraging risk-taking

B. encouraging R & D

C. encouraging innovation

D. building more retail outlets

7831. The best way to achieve economic growth is to ?
0

A. increase government spending

B. reduce taxation

C. increase personal consumption

D. save more

7832. Governments can stimulate productivity by ?
0

A. encouraging private investment

B. encouraging more labour intensive work to reduce unemployment

C. Imposing higher taxes on capital

D. reducing spending in education

7833. The neoclassical theory of growth identifier the steady state rate of growth as the ____ just sufficient to keep _____ constant while labor grows?
0

A. labor growth, output

B. investment capital per person

C. saving, investment

D. capital per person, productivity

7834. The business cycle is not transmitted from one country to another through ?
0

A. labor supply changes

B. private sector imports and exports

C. economic policy

D. the duration of compulsory education

7835. GDP per head may be an imperfect measure of economic welfare because it excludes ?
0

A. Externalities

B. Change in the distribution of income

C. All of the above

D. Untraded goods

E. the value of leisure

7836. Potential output can be increased by ____ or by ______?
0

A. increasing the use of all inputs, technical advances

B. increasing the use of labor increasing the use of land

C. increasing the use of land increasing the use of capital

D. increasing the use of capital increasing the use of labour

7837. The long run equilibrium level of national income is the level at which ?
0

A. All investment is used in the manufacturing sector

B. economic growth is Zero

C. All investment is used to maintain the existing capital stock at its current level

D. Economic growth is growing

7838. Identify below what is NOT considered to be a cause of economic growth ?
0

A. An increase in labor productivity

B. An increase in the money supply

C. An increase in technology

D. An increase in the quantity of labor and capital

7839. The theory that explains business cycles by the dynamic interaction of consumption and investment demand is the ?
0

A. multiplier accelerator model

B. sun spot theory

C. Solow theory

D. New classical theory

7840. Real business cycles are cycles in ?
0

A. real output

B. international trade

C. actual output

D. potential output

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