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
2051. A(n) _____ are computerized collections of information obtained from data sources within the company ?
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A. retrieval systems

B. flow diagrams and PERT charts

C. internal databases

D. marketing research reports

2052. The stage is the product life cycle that focuses on expanding market and creating product awareness and trails is the ?
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A. decline stage

B. maturity stage

C. growth stage

D. introduction stage
2053. ___________ have contractual authority to sell a manufacturers entire output?
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A. Rack jobbers

B. Purchasing agents

C. Selling agents

D. Manufacturers agents

2054. A monopoly may be self-perpetuating because profits may be used for ?
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A. cost-saving

B. research

C. all of the above

D. technical advance

2055. The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives is called ?
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A. Marketing control

B. Marketing analysis

C. Marketing implementation

D. Marketing strategy

2056. The problem posed by a natural monopoly is that it faces a _____ This means that _______?
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A. increasing average cost curve, marginal cost lies below average cost

B. increasing average cost curve, marginal cost lies above average cost

C. decreasing average cost curve marginal cost lies above average cost

D. decreasing average cost curve, marginal cost lies below average cost
2057. An individual who is not working and who has given up looking for work is classfied as ?
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A. hard core unemployed.

B. unemployable

C. unemployed.

D. a discouraged worker:
2058. An increase in the marginal propensity to consumer (MPC) ?
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A. has no impact on the value of the multiplier?

B. lowers the value of the multiplier

C. raises the value of the multiplier

D. rarely occurs because the MPC is set by congressional legislation

2059. If a government were to fix a minimum wage for adult workers, economists would predict ?
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A. the costs and prices of firms employing cheap labour would increase

B. there would be more unemployment

C. fewer young workers would be employed

D. wages in general would fall as employers tried to hold down costs

2060. Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account ?
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A. deficit

B. devaluation

C. revaluation

D. surplus
2061. Which of the following is the government most likely to subsidies ?
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A. Monopolies

B. Oligopolies

C. Positive externalities

D. Negative externalies

2062. A companys compensation plan should reflect its overall marketing strategy For example if the overall strategy is to grow rapidly and gain market share the compensation plan should reward ?
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A. spot selling and old product rejuvenation

B. loyalty and perseverance

C. high sales performance and encourage capturing new accounts

D. high pressure situations and competitive reaction

2063. Which of the following best describes how an increase in the money supply shift the aggregate demand curve ?
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A. The money supply shifts right prices fall spending increases and the aggregate demand curve shifts right

B. The money supply shifts right the interest rate rises investment decreases and the aggregate demand curve shifts left

C. The money supply shifts right, prices rise, demand curve shifts left

D. The money supply shifts right the interest rate falls, investment increases, and the aggregate demand curve shifts right
2064. When supply and demand for money are expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the price level ?
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A. shifts money demand to the right and increases the interest rate

B. shifts money demand to the right and decreases the interest rate

C. shifts money demand to the left and decrease the interest rate

D. None of these answers

E. shifts money demand to the left and increases the interest rate

2065. When capital mobility is perfect interest rate differentials will tend to be offset by ?
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A. Price difference

B. expected exchange rate changes

C. current account differences

D. balance of payments difference

2066. 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

2067. As prices rise. People will want to keep more money as cash and in bank accounts This is called ?
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A. menu costs of inflation.

B. cash ratio.

C. real balance effect.

D. money illusion.

2068. Nationalisation occurs when ?
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A. The government takes control of an industry

B. The government bans a product

C. The government sells assets to a the private sector

D. The government taxes a product to a raise its price

2069. All of the following are criticisms leveled against marketing by critics EXCEPT ?
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A. harming consumers through high prices

B. harming consumers through high-pressure selling

C. harming consumers through deceptive practices

D. harming consumers through too many product choices
2070. Pricing to cover variable costs and some fixed costs as in the case of some automobile distributorships that sell below total costs is typical of which of the following pricing objectives ?
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A. Survival

B. current profit maximization

C. product quality leadership

D. Market share leadership

2071. The fact that services cannot be stored for later use or sale is evidence of their ?
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A. perishability

B. inseparability

C. variability

D. intangibility

2072. Unemployment resulting from real wages being above their equilibrium level is called _________ unemployment?
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A. frictional

B. disequilibrium

C. structural

D. natural

2073. If my neighbour burns garden waste causing my house to fill with smoke this is an example of ?
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A. transaction costs

B. a second-best solution

C. a consumption externality

D. a production externality

2074. Except for taxes to offset ______ taxes are ______?
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A. imperfect competition popular

B. externalities , distortionary

C. inequality , a first best option

D. poor health, unnecessary

2075. One of the most common problems with using internal database information is that ?
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A. since it was probably collected for some other purpose it may be incomplete or wrong

B. the data is almost always unsecured and therefore, suspect as to reliability

C. top executives are usually unwilling to relinquish data therefore the data has limits

D. it is usually expensive to retrieve

2076. The record of countrys imports and exports of goods is called its ?
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A. visible trade balance

B. balance of trade:

C. balance of payments

D. balance of payments on current account

2077. Tax incidence is the ?
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A. measure of the impact the tax has on employment and output

B. structure of the tax

C. behaviour of shifting the tax to another party.

D. ultimate distribution of a taxs burden.
2078. Unemployment resulting from imperfect information in the labour market is called ____ unemployment?
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A. Frictional

B. disequilibrium

C. real-wage

D. natural

2079. Economists use the term Black Markets for situations where ?
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A. goods are sold at prices above legal or official price.

B. buyers and/or sellers are not paying taxes as they should

C. transactions are not recorded in the GDP figures.

D. illegal substances are sold

2080. The prisoners Dilemma Game demonstrates that ?
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A. monopoly is better than competition

B. players are better off if they co-operate

C. players are better of to act independently

D. people will always cheat

2081. The competitive advantage from a devaluation is likely to be offset by _______ and ________?
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A. higher import prices, lower export prices

B. higher import prices, higher wages increases

C. lower export prices, lower imports volumes

D. higher wage increases lower import volumes

2082. Aggregate demand is the total demand for all goods and services in an economy from ?
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A. all sectors of the economy including the rest of the world.

B. the household and government sectors

C. all sectors of except the rest of the world

D. the household sector.

2083. A price reduction to buyers who buy in large volumes is called a(n) ?
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A. cash discount

B. quantity discount

C. trade discount

D. seasonal discount

2084. The allocation of resources is not efficient if ?
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A. economic growth is low

B. the marginal cost of production does not equal societys marginal benefit

C. the distribution is inequitable

D. unemployment is high

2085. A competitive equilibrium is Pareto-efficient because ?
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A. prices equal marginal cost and benefit

B. All of the above

C. consumers and producers face the same prices

D. marginal costs and benefits are equal

E. Producers are price takers

2086. Which of the following is not involved with fiscal policy ?
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A. VAT

B. National insurance

C. Income tax

D. Interest insurance

2087. If a large car importer in the Pakistan wants to import many cars, then the exchange value of the Pak rupees will tend to ?
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A. fluctuate more than it would do otherwise

B. not be affected

C. depreciate

D. appreciate

2088. Which of the following statements is true about the impact of an increase in the price of lettuce ?
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A. Both the demand for lettuce will decrease and the equilibrium price and quantity of salad dressing will fall

B. The supply of lettuce will decrease

C. The demand for lettuce will decrease

D. The equilibrium price and quantity of salad dressing will fall

E. The equilibrium price and quantity of salad dressing will rise

2089. If a consumer describes a car as being the most economical car on the market than this descriptor is a?
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A. cute

B. attitude

C. belief

D. rule

2090. As prices rise, there will be costs of constantly changing price-tags and reprinting price-lists This is called ?
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A. real balance effect

B. money illusion.

C. cost-push inflation.

D. menu costs of inflation
2091. When money demand is expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the interest rate ?
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A. increase the quantity demanded of money

B. decreases the demand for money

C. increases the demand for money

D. None of these answers

E. decrease the quantity demanded of money
2092. If a companys objective were to reach masses of buyers that were geographically dispersed at a low cost per exposure the company would like choose which of the following promotion forms ?
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A. Advertising

B. Sales promotion

C. Public relations

D. Personal selling

2093. Which of the following shifts the demand for watches to the right ?
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A. none of these answers

B. a decrease in the wage of workers employed to manufacture watches

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

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

E. an increase in the price of watches

2094. The social costs of monopoly power arises because ?
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A. price is less than marginal cost

B. marginal consumer benefit is less than marginal revenue

C. there is too little output at too high a cost

D. marginal cost is set equal to marginal revenue

2095. Classifying discouraged workers as unemployed would ?
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A. increase the unemployment rate

B. have an indeterminate impact on the unemployment rate

C. not change the unemployment rate

D. decrease the unemployment rate

2096. The difference between gross investment and net investment is ?
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A. inventories

B. depreciation of the existing capital stock

C. productive investment

D. dwellings

2097. If inflation is 8 percent and the real interest rate is 3 percent, then the nominal interest rate must be ?
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A. 3/8 percent

B. 5 percent

C. 11 percent

D. 24 percent

2098. If currency dealers expect the value of the pound to fall, the exchange value will tend to ?
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A. not be affected

B. depreciate

C. appreciate

D. fluctuate more than it would do therwise

2099. The substitution effect of higher wages suggests that as the wage rate increases ?
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A. leisure becomes less expensive and households buy more of it

B. leisure becomes more expensive and households buy more of it

C. leisure becomes less expensive and households buy less of it.

D. leisure becomes more expensive and households buy less of it
2100. The migration of employable workers from low-paying nations to high-paying nations will ?
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A. increase business or capitalist incomes in the high-paying nations

B. decrease wage rates in the low-paying nations

C. increase business or capitalist incomes in the low-paying nations

D. decrease productivity and real output in the world