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
1951. Government policies that focus on increasing production rather than demand are called ?
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A. omes policies

B. fiscal policies

C. monetary policies

D. supply-side policies
1952. When companies make marketing decisions by considering consumers wants and the long run interests of the company consumer and the general population they are practicing which of the following principle ?
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A. Consumer-oriented marketing

B. Societal marketing

C. Value marketing

D. Innovative marketing

1953. Which does the government not control directly ?
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A. Spending on health

B. Firms investment decisions

C. Spending on defence

D. Spending on education

1954. When supply increase in an agricultural market farmers earning might fall because ?
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A. All output must be sold at a maximum price

B. The government buys up all the excess production

C. Supply is price elastic

D. Demand is price inelastic
1955. If the marginal propensity of consume MPC is 0.75 the value of the multiplier is ?
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A. 7.5

B. 4

C. 0.75

D. 5

1956. When a market is contestable, incumbent firms must __________ to avoid the entry of new competitors?
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A. differentiate their products

B. behave like competitive firms

C. practice price discrimination

D. agree to act together

1957. The government is considering placing a tax on cigarettes to raise revenue to finance health-care benefits. The demand for cigarettes is price inelastic Which of the following statements is True ?
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A. This tax will not raise much revenue either in the short term or the long term since demand is price inelastic

B. The tax on cigarettes may not raise as much revenue as anticipated in the years to com because the demand for cigarettes is likely to become more elastic over time.

C. This a very good way to raise revenue both in the short term and in the long term, because there are no substitutes for cigarettes.

D. No tax revenue can be raised in this way because sellers of cigarette will just lower their price by the amount of the tax and therefore, the price of cigarettes to consumers will not change

1958. __________ is a philosophy holding that a companys marketing should support the best long-run performance of the marketing system?
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A. Enlightened marketing

B. Fundamental marketing

C. Conceptual marketing

D. Myopic marketing

1959. If the consumption of good by one person does not reduce the quantity available by others and nobody can be easily excluded from consumption, we are referring to a ?
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A. public good

B. Private good

C. merit good

D. abundant good

1960. In the EMU a countrys competitiveness can change because of ?
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A. central bank intervention in the Forex

B. domestic wage and price adjustment

C. interest rate adjustment

D. devaluation

1961. If the exchange rate between the UK and Japan changes from 1 = 100 yen to 1 = 150 yen then ceteris paribus, the price of UK goods in Japan ?
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A. could either increase of decrease

B. will increase

C. will remain the same

D. will decrease

1962. _________ are products bought by individuals and organizations for further processing or for use in conducting a business?
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A. Consumer products

B. Industrial products

C. Services

D. Specialty products

1963. When a marketing research organization chooses a segment of the population that represents the population as a whole, they have chosen a ?
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A. sample

B. market target

C. bi-variant population

D. group

1964. Market failure may arise because of ?
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A. all of the above

B. externalities

C. missing markets

D. taxation

E. imperfect competition

1965. Which best describes consumer surplus ?
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A. The cost of providing a unit

B. The price consumers are willing to pray for a unit

C. The difference the price a consumer pays for an item and the price he/she is willing to pay

D. The profits made by a firm

1966. Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _______ and ________ ?
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A. buy foreign exchange buy domestic currency

B. buy foreign exchange, sell domestic currency

C. sell foreign exchange sell domestic currency

D. sell foreign exchange buy domestic currency
1967. Suppose consumer tastes shift toward the consumption of apples Which of the following statements is an accurate description of the impact of this event on the market for apples ?
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A. There is an increase in the quantity demanded of apples and in the supply for apples

B. There is a decrease in the quantity demanded of apples and an increase in the supply for apples

C. There is an increase in the demand for apples and a decrease in the supply of apples

D. There is an increase in the demand for apples and an increase in the quantity supplied of apples.

E. There is an increase in the demand and supply of apples.

1968. A monopolistic market has ?
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A. none of these answers

B. only one seller

C. many buyers and sellers

D. firms that are price takers

1969. When a company reviews sales costs and profit projections for a new product to find out whether these factors satisfy the companys objectives they are in which of the following new process development stages ?
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A. Business analysis

B. Marketing strategy development

C. Concept development and testing

D. Commercialization

1970. The initial effect of an increase in the money supply is to ?
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A. increase the price level

B. decrease the price level

C. increase the interest rate

D. decrease the interest rate

1971. The effect of a tax to offset a negative externality will be to ____ price and ______ quantity?
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A. increase, increase

B. increase, reduce

C. reduce , reduce

D. reduce, increase

1972. Agricultural prices tend to be unstable because ?
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A. Demand and supply are price inelastic

B. Supply is price elastic

C. Demand is price elastic

D. Supply is stable

1973. What is meant by an objective ?
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A. A way of reaching a target

B. A target

C. A policy

D. A strategy
1974. A shift is demand will have more effect on price than quantity if ?
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A. The price elasticity of supply is infinity

B. The price elasticity of supply is price elastic

C. The price elasticity of supply is price inelastic

D. The price elasticity of supply is perfectly elastic

1975. Income inequality can be high in the free market and should be reduced This is an example of What ?
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A. Normative economic statement

B. Judicial economic statement

C. Positive economic statement

D. Formative economic statement

1976. If the price of good is below the equilibrium price ?
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A. there is a surplus and the price will rise

B. there is a shortage and the price will fall

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

D. there is a shortage and the price will rise
1977. All of the following are thought to be sources of new product ideas EXCEPT ?
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A. the local library

B. competitors

C. customers

D. internal sources

1978. When an increase in government purchases raises incomes shifts money demand to the right raises the interest rate, and lowers investment we have seen a demonstration of ?
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A. None of these answers

B. The crowding-out effect

C. supply-side economics

D. The multiplier effects

1979. Comparing a monopoly and competitive firm, the monopolist will ?
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A. produce less at a lower price

B. produce less at a lower price

C. produce more at a lower price

D. produce less at a higher price
1980. The initial impact of an increase in government spending is to shift ?
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A. aggregate demand to the left

B. aggregate demand to the right

C. aggregate supply to the left

D. aggregate supply to the right

1981. If the field salesforce has been supplied with new leads (via the telephone) that have been qualified, they have probably been assisted by ?
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A. master salespersons

B. sales assistants

C. telemarketers

D. technical support persons

1982. ________ is screening new product ideas in order to spot good ideas and drop poor ones as soon as possible?
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A. Brainstorming

B. Idea screening

C. Idea generation

D. Concept development and testing

1983. In Nash equilibrium each player chooses the best strategy ?
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A. Assuming other players move first

B. given the strategies of other players

C. dominated by the other players

D. that is a credible threat

1984. All of the following factors can affect the attractiveness of a market segment EXCEPT ?
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A. actual or potential substitute products

B. the presence of many strong and aggressive competitors

C. the power of buyers in the segments

D. the likelihood of government monitoring
1985. Today advertising captures about ________ percent of total promotion spending?
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A. 29

B. 23

C. 15

D. 33

1986. Fiscal policy is weak under floating exchanges rates as fiscal expansion ?
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A. crowds out imports

B. reduces the budget deficit

C. crowds out exports

D. crowds out public consumption

1987. Merit goods are ?
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A. Provided free

B. Under provided in the free market economy

C. Over provided in the free market economy

D. Not provided in the free market economy

1988. The advantages of audience selectivity no ad competition and personalization apply to which type of media ?
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A. Radio

B. Television

C. Direct Mail

D. Newspapers

1989. The Maastricht criteria for entry to the EMU are that applicants should have ?
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A. stable nominal exchange rates

B. budget deficits and government debt under control

C. low inflation

D. all of the above

E. low interest rates

1990. When Coca-Cota and Nestle formed joint venture to market a ready to drink coffee and tea worldwide the type of marketing system that was formed would best be described as being a(n)?
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A. diversified marketing system

B. vertical marketing system

C. horizontal marketing system

D. parallel marketing system

1991. The demand for ice-cream is lower outside of summer causing lower demand for ice-cream salesman if they cannot find other work, this is called _______ unemployment?
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A. structural

B. demand-deficient

C. Regional

D. seasonal
1992. That the company that overlooks new and better ways to do things will eventually lose customers to another company that has found a better way to serving customer needs is a major tenet of ?
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A. consumer oriented marketing

B. sense -f mission marketing

C. innovative marketing

D. value marketing

1993. Which of the following is a policy instrument as opposed to a government objective ?
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A. lower interest rates

B. Faster economic growth

C. A better balance of trade position

D. Lower unemployment
1994. The law of supply states that an increase in the price of a good ?
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A. increases the quantity supplied of that good

B. none of these answers

C. decrease the quantity demanded for that good

D. decrease the demand for the good

E. increase the supply of that good

1995. If an increase in consumer incomes leads to a decrease in the demand for camping equipment, then camping equipment is ?
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A. none of these answers

B. an inferior good

C. a substitute good

D. a normal good

1996. An increase (rightward shift) in the demand for a good will tend to cause ?
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A. none of these answers

B. a decrease in the equilibrium quantity.

C. an increase in the equilibrium price and quantity

D. an increase in the equilibrium price and a decrease in the equilibrium quantity

E. a decrease in the equilibrium price and quantity.
1997. Yahoo, Infoseek, and Baido are all called ?
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A. browsers

B. search engines

C. Webcasters

D. software

1998. Which of the following is not likely to be government objective ?
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A. Increasing the level of exports

B. Increasing government spending

C. Increasing economic growth

D. Increasing employment
1999. Successful service companies focus their attention on both their customers and their employees they understand ________ which links service firm profits with employee and customer satisfaction ?
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A. interactive marketing

B. service-profit chains

C. service differentiation

D. internal marketing

2000. An economy that trades with and has financial dealing with other countries is called a/an ________ economy?
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A. open

B. free-trade

C. mixed

D. autarkic