economics MCQs – Page 41

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 Review each marked answer and report any item that may be outdated or unclear.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
801. Technological improvements are similar to international trade since they both ?
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A. Provide benefits for all producers and consumers

B. Reduce unemployment for all domestic workers

C. Increase the nations aggregate income

D. Ensure that industries can operate at less than full capacity

802. Initial conditions in the year before the crisis in Thailand Indonesia Malaysia the Philippines and Korea in 1997 indicate that ?
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A. credit growth was fast

B. capital inflows/GDP were very low

C. Nonperforming bank loan ratios were high

D. . current account deficits were high

803. The natural rate of output is the amount of real GDP produced ?
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A. When there is no no unemployment

B. When the economy is at the natural rate of investment

C. When the economy is at the natural rate of unemployment

D. When the economy is at the natural rate of aggregate demand

804. The multiplier is calculated as___________?
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A. 1/MPS

B. 1/MPC

C. 1(1-MPC)

D. a or b
805. The University of Pennsylvania researchers Summers and Heston compute the price level of GDP as the ratio of purchasing power parity (PPP) exchange rate to the actual exchange rate where ?
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A. both exchange rates are measured s the domestic currency price of the US-dollar

B. both exchange rates are not converted into international dollars

C. both exchange rate are pegged

D. both exchange rate are converted into Big Mac PPP formula

806. A main advantage of specialization results from ?
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A. Smaller production runs resulting in lower unit costs

B. Economies of large-scale production

C. High wages paid to foreign workers

D. The specializing country behaving as a monopoly

807. In the economy when a steel producer sells steel to car producer it is regarded as ?
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A. a final good

B. a leakage

C. an intermediate good

D. an injection

808. Aggregate demand includes only ?
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A. consumer expenditure investment government expenditure and exports less imports

B. sumer expenditure and investment

C. consumer expenditure government expenditure and investment

D. consumer debt investment debt and government debt

809. Aggregate supply is the total amount ?
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A. of products produced by a given industry

B. of goods and services produced in an economy

C. produced by the government

D. of labor supplied by all households

810. Total withdrawals from the circular flow of income include ?
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A. consumption savings and taxes

B. savings taxes and imports

C. savings government expenditure and imports

D. savings taxes and exports

811. Short-run equilibrium output means that aggregate demand __________ actual output?
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A. fluctuates around

B. is greater than

C. is less than

D. equals
812. Feudalism was undercut by?
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A. the migration of serfs to the town

B. the rise of the business corporation

C. #NAME?

D. factory competition with handicraft and manorial production

813. The marginal propensity of consume is equal to ?
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A. Total consumption / total income

B. Change in consumption / change in income

C. Change in consumption / change in savings

D. Total spending / total consumption

814. Which of the following statement is not true about LDCs ?
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A. Setting up western labor standard and minimum wages in labor-abundant LDCs is sensible

B. A greater share of GNP would have to be devoted to education to attain the same primary enrollment rates as in the U.S

C. Most LDCs have less than 1/10 the per capita GNP of the U.S

D. Most LDCs have a greater shortage of qualified teachers than the U.S does

815. Rostows economics stages are ?
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A. The traditional society the preconditions for takeoff, the takeoff, the drive to maturity and the age of high mass consumption

B. the preconditions for consumption the replication the drive to maturity and the age of high mass consumption

C. The preconditions for takeoff, the takeoff, the drive to maturity and the age of creative destruction

D. the learning curve the age of high mass consumption post takeoff, and the drive to maturity

816. Refer to Exhibit 6.If People in the economy expect inflation to be 6 percent but inflation turn out to be 3 percent the economy is operating at point ?
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A. c

B. F

C. d

D. H

817. The percentage of the labor force that is unemployed is the ?
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A. labor force rate

B. unemployment rate

C. employment rate

D. unemployment population ratio

818. The Harrod Domar growth model suggests that growth is ?
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A. directly related to savings and inversely related to the capital/output ratio

B. directly related to savings and the capital/output ratio

C. directly related to the capital/output ratio and inversely related to savings

D. indirectly related to savings and the capital/output ratio

819. The formula to calculate economic growth from 2001 to 2002 is given by ?
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A. [(GDP2002 GDP2001)/GDP2001]100

B. [(GDP2001 GDP2002]100

C. [(GDP2002 + GDP2001)/GDP2001]100

D. [(GDP2002 GDP2001) GDP2001]100

820. A countrys total external debt (EDT) includes ?
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A. IV public official development assistance

B. long-term debt with a maturity of more than one year

C. short term debt with a maturity of one year or less

D. . repurchase obligations to the IMF