economics MCQs – Page 401

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 Review each marked answer and report any item that may be outdated or unclear.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 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
8001. A reduced share of the world export market for the United States would be attributed to?
comments icon0

A. High levels of investment by American corporations

B. High incomes of American households

C. Decreased productivity in U.S manufacturing

D. Relatively low interest rates in the United States

8002. The terms of trade measure ?
comments icon0
A. Export prices compared to import prices

B. The GDP of one country compared to another

C. The quantity of exports of one country compared to another

D. The income of one country compared to another

8003. Import substitution is the replacement of ____ by domestic production _____ protection of ________?
comments icon0

A. exports, patents

B. exports, subsidies

C. imports, subsidies

D. imports, high tariffs or import quotas
8004. International difference is opportunity costs lead to countries acquiring ?
comments icon0
A. Comparative advantage

B. trade quotas

C. trade barriers

D. High exchange rates

8005. A country has a comparative advantage in the production of a product if the goods _____ cost in different from the goods _____ cost in another country ?
comments icon0

A. money; opportunity

B. foreign exchange money

C. opportunity; opportunity

D. resource; resource

8006. International trade tends to cause welfare losses to at least some groups in a country ?
comments icon0
A. The less mobile the countrys resources

B. higher the countrys initial living standard

C. The more mobile the countrys resources

D. The lower the countrys initial living standard

8007. International specialization takes place because of______________?
comments icon0
A. All of the above

B. differences in technology

C. differences in factor endowments

D. scale economies

8008. Economists suggest that an optimum tariff would be one which reduce imports to a point where___________?
comments icon0

A. import prices are the same as export prices

B. Price elasticity of imports is unity and tariff revenue is maximized

C. Comparative advantage is achieved

D. marginal social cost equals marginal social benefit
8009. Increased foreign competition tend to ?
comments icon0

A. Intensify inflationary pressure at home

B. Place constraints on the wages of domestic workers

C. Increase profits of domestic import competing industries

D. Induce falling output per worker-hour for domestic workers

8010. When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?
comments icon0
A. trade creation and trade diversion

B. trade creation

C. trade diversion

D. trade channeling

8011. If a country can produce 10 of product A or 4 of product B the opportunity cost of 1B is ?
comments icon0

A. 1B

B. 0.4A

C. 2.5A

D. 10A

8012. International trade in goods and services tends to ?
comments icon0

A. Keep all domestic costs and prices at the same level

B. Increase all domestic costs and prices

C. Lessen the amount of competition facing home manufacturers

D. Increase the amount of competition facing home manufacturers
8013. Output fell sharply in the transition economies because ?
comments icon0

A. banks were unable to function

B. All of the above

C. there was little corporate control

D. vital infrastructure was missing

8014. In a floating exchange rate system ?
comments icon0

A. The Balance of payments will always equal the government budget

B. The exchange rate should adjust to equate the supply and demand of the currency

C. The government intervenes to influence the exchange rate

D. The Balance of payments should always be in surplus

8015. Tariffs ?
comments icon0
A. Increase the quantity of imports

B. Increase government earnings from tax

C. Decrease domestic production

D. Decrease the domestic price of a product

8016. The level of the equilibrium exchange rate offsets international differences in ?
comments icon0

A. relative costs

B. absolute advantage

C. opportunity cost

D. comparative advantage

8017. If goods are exported for less than societys marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from?
comments icon0

A. a quota

B. an import subsidy

C. an export subsidy

D. comparative advantage

8018. International trade forces domestic firms to become more competitive in terms of ?
comments icon0

A. Product price

B. The introduction of new products

C. Product design and quality

D. All of the above
8019. An optimal tariff is one which reduces imports to the level at which ____ equals ____?
comments icon0

A. imports, exports

B. The demand for currency the supply of currency

C. social marginal cost, social marginal benefit

D. the balance of trade, zero

8020. A primary reason why nations conduct international trade is because ?
comments icon0

A. interest rates are not identical in all trading nations

B. Trade enhances opportunities to accumulate profits

C. Some nations prefer to produce one thing while others produce another

D. Resources are not equally distributed to all trading nations