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
2001. In 1985, the Coca-cola Company made a classic marketing blunder with its deletion of its popular Coca-Cola product and introduction of what it called New Coke Analysts now believe that most of the companys problems resulted from poor marketing research. As the public demanded their old Coke back the company relented and reintroduced Coca-Cola Classic (which has regained and surpassed its former position) while New Coke owns only 0.1 percent of the market Which of the following marketing research mistakes did Coca-Cola make ?
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A. They did not investigate dealer reaction and had inadequate distribution

B. They failed to account for the Pepsi Challenge taste test in their marketing efforts

C. They defined their marketing research problem too narrowly

D. They did not investigate pricing correctly and priced the product too high

2002. According to Engels law as income rises ?
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A. The percentage spent on savings remains constant

B. The percentage spent on food rises

C. The percentage spent on other categories increase

D. The percentage spent on housing increases

2003. In a fixed exchange rate regime, the central the exchange rate ?
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A. buying reduce

B. C and D

C. selling, increase

D. selling, reduce

E. A and B

F. buying increase

2004. A _____ is a good offered either free or at low cost as an incentive to buy a product ?
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A. patronage reward

B. spiff

C. premium

D. price pack

2005. Since 1998 many government have defined unemployment using ?
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A. the number out of work and claiming benefit

B. the ILO/OECD standardised unemployment measurement

C. the percentage of the labour force not in work

D. a labour force survey.

2006. In the insurance industry, high-risk customers are more likely to take out insurance. This is an example of ?
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A. a poor gamble

B. risk aversion

C. moral hazard

D. adverse selection
2007. When an increase in government purchases increases the income of some people, and those people spend some of that increase in income on additional consumer goods, 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
2008. Each salesperson is assigned to an exclusive area in which to sell the companys full line of products or services in which type of salesforce structure ?
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A. Territorial sales force

B. Hybrid sales force

C. Customer sales force

D. Product sales force

2009. If the price in a market is fixed by the government below equilibrium ?
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A. There is equilibrium

B. There is excess equilibrium

C. There is excess demand

D. There is excess supply

2010. A company is in the ________ stage of the new product development process when the company develops the product concept into a physical product in order to assure that the product idea can be turned into a workable product ?
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A. product development

B. marketing strategy

C. business analysis

D. commercialization

2011. The price mechanism cannot ?
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A. Act as a signal

B. shift the demand curve

C. Act as a incentive

D. Act as a rationing device

2012. Regulations that arise to ensure that firms take responsibility for the social costs of their products or production processes stem from which reason for government legislation of business ?
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A. To protect the interests of society

B. To protect businesses from unfair consumer demands

C. To protect companies form each other

D. To protect consumers from unfair business practices

2013. Marketers are sometimes accused of deceptive practices that lead consumers to believe they will get more value than they actually do. _____ includes practices such as falsely advertising factory of wholesale prices or a large price reduction from a phony high retail price ?
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A. Deceptive packaging

B. Deceptive promotion

C. Deceptive pricing

D. Deceptive cost structure

2014. Joining with foreign companies to produce or market products and services is called ?
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A. joint venturing

B. indirect exporting

C. direct exporting

D. licensing

2015. If interest rates rise then costs are likely to _______ and demand is likely to _________?
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A. fall; fall

B. rise; rise

C. rise, fall

D. fall; rise

2016. In a example discussed in your text Johnson & Johnsons recall of their Tylenol product following the discovery that several bottles of Tyloenol had been laced with cyanide is consistent with which business philosophy ?
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A. The marketing concept

B. The product concept

C. The selling concept

D. The societal marketing concept
2017. If the price of a good is above 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 rise

C. there is a surplus and the price will fall

D. there is a shortage and the price will fall

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

2018. In terms of execution style a family seated at the dinner table enjoying the advertised product would be an example of which of the following types of advertising ?
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A. Mood or imagery

B. Slice of life

C. Lifestyle

D. Personality symbol

2019. Suppose a wave of investor and consumer pessimism in the USA causes a reduction in spending If the US federal Reserve (Which has a broader remit than the Bank of England Which is charged only with controlling inflation) chooses to engage in activist stabilization policy it should ?
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A. decrease interest rates

B. Increase government spending and decrease taxes

C. decrease the money supply

D. decrease government spending and increase taxes

2020. Markets sometimes fail to exist because of________?
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A. a and c

B. externalities

C. the free-rider problem

D. a and b
2021. The primary reason that many companies work to become the low cost producers in their industry is because ?
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A. they can gain tax advantages

B. they can please top management

C. they can set lower prices that that result in greater sales and profits

D. they can generate more advertising

2022. Suppose the government increases its purchases by Rs16 billion. If the multiplier effect exceeds the crowding out effect, then ?
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A. the aggregate supply curve shifts to the left by more than Rs 16 billion

B. The aggregate supply curve shifts to the right by more than Rs 16 billion

C. The aggregate demand curve shifts to the right by more than Rs 16 billion

D. The aggregate demand curve shifts to the left by more than Rs 16 billion

2023. A subsidy paid to producers ?
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A. shifts the demand curve

B. Leads to a contractions in supply

C. Leads to an extension of supply

D. Shifts the supply curve
2024. The main features of the European Monetary system are ?
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A. the exchange rate mechanism

B. The ECU

C. currency swap agreement between member

D. all of the above
2025. Cyclical unemployment is the ?
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A. Portion of unemployment that is due to changes in the structure of the economy that results in a significant loss of jobs in certain industries.

B. Unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work.

C. Unemployment that occurs during recessions and depressions.

D. Portion of unemployment that is due to the normal working of the labour market

2026. All of the following are types of imperfect competition except ?
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A. monopolistic competition

B. oligopoly

C. unfair competition

D. monopoly

2027. In the market for real output, the initial effect of an increase in the money supply is to ?
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A. shift the aggregate demand curve to the right

B. shift the aggregate supply curve to the left

C. shift the aggregate supply curve to the right

D. shift the aggregate demand curve to the left

2028. Costs that do not vary with production or sales levels are called ?
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A. fixed costs

B. standard costs

C. variable costs

D. independent costs

2029. Government policies that focus on changing taxes and government spending are called ?
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A. supply-side policies

B. monetary policies

C. incomes policies

D. fiscal policies
2030. Suppose a frost destroys much of the Florida orange crop. At the same time, suppose consumer tastes shift toward orange juice, What would we expect to happen to the equilibrium price and quantity in the market for orange juice ?
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A. price will decrease, quantity is ambiguous

B. The impact on both price and quantity is ambiguous.

C. Price will increase, quantity will increase

D. price will increase, quantity will decrease

E. price will increase, quantity is ambiguous.
2031. The situation when a country imports more than it exports is ?
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A. a recession

B. an expansion.

C. a trade surplus

D. a trade deficit
2032. A decrease (leftward shift) in the supply for a good will tend to cause ?
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A. a decrease in the equilibrium price and quantity.

B. none of these answers

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 an increase in the equilibrium quantity

2033. An inferior good is one for which an increase in income causes a(n) ?
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A. decrease in demand

B. increase in supply

C. decrease in supply

D. increase in demand

2034. The law of demand states that an increases in the price of a good ?
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A. increases the quantity supplied of that good

B. decreases the quantity demanded for that good

C. None of these answers

D. decreases the quantity supplied of that good
2035. A dominant strategy is ?
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A. a losing strategy

B. a players best strategy when moving first

C. a players best strategy whatever the strategies adopted by rivals

D. a wining strategy

2036. A __________ is a brand created and owned by a reseller of a product of service ?
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A. manufacturers brand private brand

B. co-brand

C. licensed brand

D. private brand
2037. A perfectly competitive market has ?
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A. at least a few sellers.

B. many buyers and sellers.

C. only one seller.

D. firms that set their own prices

2038. A reduction in the costs of production will ?
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A. Lead to a movement along the supply curve

B. Shift the demand curve

C. Shift the supply curve

D. Lead to an extension of supply

2039. The single European Act committed ________ governments to a ________ in 1992?
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A. Western European, single currency area

B. Western European, single market

C. European Union, single currency area

D. European union, single market
2040. The natural rate of unemployment is generally thought of as the ?
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A. Sum of structural unemployment and cyclical unemployment.

B. Sum of frictional unemployment and cyclical unemployment

C. sum of frictional unemployment and structural unemployment.

D. ratio of the frictional unemployment rate to the cyclical unemployment rate.

2041. Satellite television subscription and television detection devices are ways in which broadcasting companies address the ________ problem?
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A. free rider

B. market imperfection

C. externality

D. deadweight burden

2042. A _______ is a promotion strategy that calls for using the sales force and trade promotion to move the produce through channels ?
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A. push strategy

B. pull strategy

C. blocking strategy

D. integrated strategy

2043. A positive externality occurs when ?
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A. The social marginal benefits are higher than the private marginal benefits

B. A product is not provided in the free market

C. The social marginal cost equal the social marginal benefit

D. The social marginal costs are higher than the private marginals costs
2044. __________ has the advantage of being high in selectivity low cost; immediacy; and interactive capabilities?
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A. Online

B. Outdoor

C. Radio

D. Direct Mail

2045. Concerns that the manufactures of harmful products such as tobacco have influence on lawmakers to the detriment of the public interest is used as evidence of which criticism of marketing ?
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A. Cultural pollution

B. Too much political power

C. Too much advertising

D. Too few social goods

2046. The type of trade promotion discount in which manufacturers agree to reduce the price to the retailer in exchange for the retailers agreement to feature the manufacturers products is some way is called a(n) ?
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A. premium

B. allowance

C. rebate

D. discount

2047. Which of the following is an automatic stabilizer ?
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A. Spending on public schools

B. All of these answers are automatic stabilizers

C. Unemployment benefits

D. Military spending

E. spending on the space shuttle

2048. Catalog marketing is big business in the United States. The average house hold receives __________ catalogs per year?
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A. 100

B. 75

C. 50

D. 25

2049. Which of the following statements about stabilization policy is not true ?
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A. Long lags enhance the ability of policy makers to fine tune the economy

B. When policy makers implement activist stabilization policies there is a significant risk that their policies may actually have a destabilizing effect

C. None of these answers are true

D. Many economists prefer automatic stabilizers because they affect the economy with a shorter lag than activist stabilization policy

2050. VAT is a good example of which kind of tax ?
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A. Specific

B. Exercise duty

C. Ad valorem

D. Direct