economics MCQs – Page 412

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 Review each marked answer and report any item that may be outdated or unclear.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

8221. A competitive equilibrium is Pareto-efficient because ?
0

A. All of the above

B. Producers are price takers

C. marginal costs and benefits are equal

D. prices equal marginal cost and benefit

E. consumers and producers face the same prices

8222. Which of the following is the government most likely to subsidies ?
0

A. Monopolies

B. Negative externalies

C. Oligopolies

D. Positive externalities

8223. The price mechanism does not act as a ?
0

A. Signal

B. Indicator of income

C. Rationing device

D. Incentive

8224. VAT is a good example of which kind of tax ?
0

A. Exercise duty

B. Direct

C. Specific

D. Ad valorem

8225. The law of demand states that an increases in the price of a good ?
0

A. increases the quantity supplied of that good

B. decreases the quantity supplied of that good

C. None of these answers

D. decreases the quantity demanded for that good

8226. A shift in demand will have more effect on price than quantity if ?
0

A. The price elasticity of supply is + 3

B. The price elasticity of supply is + 0.2

C. The price elasticity of supply is + 2

D. The price elasticity of supply is infinity

8227. Except for taxes to offset ______ taxes are ______?
0

A. externalities , distortionary

B. poor health, unnecessary

C. imperfect competition popular

D. inequality , a first best option

8228. A shift in supply will have a bigger effect on price than output if demand is ?
0

A. income elastic

B. income inelastic

C. Price elastic

D. Price inelastic

8229. 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 ?
0

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

B. There is an increase in the demand for apples and an increase in the quantity supplied of 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 quantity demanded of apples and in the supply for apples

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

8230. A movement along the demand curve may be caused by ?
0

A. A change in advertising

B. A change in income

C. A change in the number of buyers

D. A shift in supply

8231. We cannot say whether one allocation of resources is better than another allocation because ?
0

A. some people cant count

B. some people may not be permanent resident

C. We cant make value judgments to compare different peoples welfare

D. not all economic activity is legal

8232. Tax incidence is the ?
0

A. measure of the impact the tax has on employment and output

B. behaviour of shifting the tax to another party.

C. ultimate distribution of a taxs burden.

D. structure of the tax

8233. The reason for the kinked demand curve is that ?
0

A. The oligopolist believes that competitors will match price increase but not output increase

B. The oligopolist believes that competitors will match price increase but not output reduction

C. The oligopolist believers that competitors will match price cuts but not price rises

D. The oligopolist believes that competitors will match output increase but not output reduction

8234. Comparing a monopoly and competitive firm, the monopolist will ?
0

A. produce less at a lower price

B. produce more at a lower price

C. produce less at a lower price

D. produce less at a higher price

8235. A subsidy paid to producers ?
0

A. shifts the demand curve

B. Shifts the supply curve

C. Leads to a contractions in supply

D. Leads to an extension of supply

8236. The price mechanism cannot ?
0

A. Act as a signal

B. Act as a incentive

C. Act as a rationing device

D. shift the demand curve

8237. Suppose there is an increase in the both the supply and demand for personal computers Further, suppose the supply of personal computer increase more than demand for personal computers In the market for personal computers i the market for personal computers, we would expect ?
0

A. the equilibrium quantity to rise and the equilibrium price to rise

B. the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous

C. the equilibrium quantity to rise and the equilibrium price to remain constant

D. the equilibrium quantity to rise and the equilibrium price to fall

E. the change in the equilibrium quantity to be ambiguous and the equilibrium price to fall.

8238. It is necessary to ration a good whenever ?
0

A. supply exceeds demand

B. a surplus exists

C. demand exceeds supply

D. there is perfectly inelastic demand for the good

8239. Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by ?
0

A. An increase in supply

B. An increase in demand

C. improvements in production technology

D. An fall in demand

8240. 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 ?
0

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

Previous Next

Showing 8221 to 8240 of 9118 mcqs