economics MCQs – Page 413

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 Review each marked answer and report any item that may be outdated or unclear.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

8241. A monopoly may be self-perpetuating because profits may be used for ?
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A. cost-saving

B. research

C. technical advance

D. all of the above

8242. Which of the following shifts the demand for watches to the right ?
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A. a decrease in the wage of workers employed to manufacture watches

B. none of these answers

C. an increase in the price of watches

D. a decrease in consumer incomes if watches are a normal good

E. a decrease in the price of watch batteries if watch batteries and watches are complements

8243. A price ceiling is ?
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A. a minimum price that consumers are willing to pay for a good.

B. a minimum price usually set by government that sellers must charge for a good

C. a maximum price usually set by government that sellers may charge for a good

D. the different between the initial equilibrium price and the equilibrium price after a decrease in supply

8244. A decrease (leftward shift) in the supply for a good will tend to cause ?
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A. none of these answers

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

C. a decrease in the equilibrium price and quantity.

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

E. an increase in the equilibrium price and quantity

8245. With a positive externality ?
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A. There is over consumption in the free market

B. There is under-consumption in the free market

C. Society could be made off it less was produced

D. The government may tax to decrease production

8246. 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.

8247. Agricultural prices tend to be unstable because ?
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A. Supply is price elastic

B. Supply is stable

C. Demand is price elastic

D. Demand and supply are price inelastic

8248. Satellite television subscription and television detection devices are ways in which broadcasting companies address the ________ problem?
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A. externality

B. deadweight burden

C. free rider

D. market imperfection

8249. A natural monopoly has a declining _______ over a large range of output?
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A. long run marginal cost

B. long run marginal cost

C. short run marginal cost

D. long run average cost

8250. A good example of a public good is ?
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A. the national health service

B. public transport

C. rail transport

D. national defence

8251. An increase in income will ?
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A. Lead to a movement along the demand curve

B. Lead to an extension of demand

C. Shift the supply curve

D. Shift the demand curve

8252. Suppose there is an increase in both the supply and demand for personal computers. In the market for personal computers, we would expect?
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A. the equilibrium quantity to rise and the equilibrium price to remain constant

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

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

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

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

8253. If the market price is below the equilibrium price ?
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A. quantity demanded will be greater than quantity supplied

B. quantity demanded will equal quantity supplied .

C. quantity demanded will be less than quantity supplied

D. demand will be less than supply.

8254. Taxes creates a wedge between the sales price and purchase price that prevents the price system equating ____ and ______?
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A. demand, supply

B. marginal cost, average cost

C. marginal cost, marginal revenue

D. marginal costs, marginal benefits

8255. A monopolistic market has ?
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A. firms that are price takers

B. many buyers and sellers

C. only one seller

D. none of these answers

8256. 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. an inferior good

B. a substitute good

C. a normal good

D. none of these answers

8257. If my neighbour burns garden waste causing my house to fill with smoke this is an example of ?
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A. a production externality

B. a consumption externality

C. transaction costs

D. a second-best solution

8258. A public good ?
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A. Gas external costs

B. Is free

C. Has the properties of being non-excludable and non-diminishable

D. Is provided by the government

8259. The prisoners Dilemma Game demonstrates that ?
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A. monopoly is better than competition

B. people will always cheat

C. players are better off if they co-operate

D. players are better of to act independently

8260. If two firms doing the same thing in the same industry join together, this is known as a ?
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A. vertical merger

B. horizontal merger

C. hostile takeover

D. conglomerate merger

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