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
2101. The idea of convergence of GDP in Europe suggests that ?
comments icon0

A. All countries will eventually join the EEC

B. Poorer countries have higher capital/labour ratios than richer countries.

C. The gap between countries GDP per head will widen

D. Poorer less developed countries will catch up with richer ones.
2102. Which Pakistani city is famous for high quality sports equipment ?
comments icon0

A. Lahore

B. Chiniot

C. Gujranwala

D. Sialkot
2103. Inflation can be measured by all of the following except the ?
comments icon0

A. consumer price index

B. Producer price index

C. finished goods price index

D. GDP deflector

E. All of these answers are used to measure inflation.

2104. ________ refers to the price charged for products sold to a subsidiary to a multinational corporation b another subsidiary in another country?
comments icon0
A. transfer pricing

B. marginal cost pricing

C. full cost pricing

D. price discrimination

2105. Under which of the following conditions would you prefer to be the lender ?
comments icon0
A. The nominal rate of interest is 5 percent and the inflation rate are 1 percent

B. The nominal rate of interest is 20 percent and the inflation rate is 25 percent

C. The nominal rate of interest is 15 percent and the inflation rate is 14 percent

D. The nominal rate of interest is 12 percent and the inflation rate is 9 percent

2106. Inflation ?
comments icon0

A. Reduce the standard of living

B. Reduce the cost of living

C. Reduce the price of products

D. Reduce the purchasing power of a rupee

2107. the cost of using capital services is the ?
comments icon0

A. wage rate of capital

B. interest charges

C. rental rate for capital

D. marginal capital cost

2108. If a person who works in coal mine gets paid more than a person with a similar background and skills who works in a safer job, then ?
comments icon0

A. we have evidence of discrimination against workers outside the coal mine

B. coal miners must be more attractive than other workers

C. coal miners must have greater human capital than others

D. we have observed a compensating differential
2109. Involuntary unemployment exists if workers ?
comments icon0

A. will not work because the hours are anti-social

B. will not work at the offered wage

C. Are not prepared to move house to get the job

D. would work at the going wage but cant find jobs
2110. The functional distribution of income shows how national income is divided between ?
comments icon0

A. the population

B. the factors of production

C. the working population

D. employees

2111. Tax incidence is the ?
comments icon0

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

B. ultimate distribution of a taxs burden

C. structure of the tax.

D. behaviour of shifting the tax to another party

2112. A negative externality affect market efficiency in a manner similar to ?
comments icon0
A. a common resource

B. an excludable good.

C. a public good.

D. a private good

2113. Some frictional Unemployment is inevitable because ?
comments icon0

A. of minimum wage laws

B. Of unions

C. There are changes in the demand for labour among different firms.

D. Efficiency wages may hold the wage

E. All of these answers

2114. If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?
comments icon0

A. falls; falls; falls; surplus

B. rise; falls; rises; deficit

C. falls; rise; falls; surplus

D. is static; low; rise; deficit;

2115. The marginal tax rate is ?
comments icon0

A. the additional tax you pay divided by your total income

B. your total income divided by the total amount of tax you pay.

C. the total amount of tax you pay divided by your total income

D. the tax rate you pay on any additional income that you earn.
2116. Tax shifting ?
comments icon0

A. occurs when taxes cause prices to increase but wages to fall.

B. is the ultimate distribution of a taxs burden

C. is the way in which a tax is structured

D. occurs when households can alter their behaviour and do something to avoid paying tax
2117. Assuming leisure is a normal good, if the income effect is greater than the substitution effect a wage increase ?
comments icon0

A. will have no effect on labour supply

B. could cause either an increases or a decrease in labour supply

C. will decreases labour supply

D. will increase labour supply.

2118. If a person can be prevented from using a good, the good is said to be ?
comments icon0
A. excludable

B. rival

C. a public goods

D. a common resource

2119. A wage differential among groups may not by itself be evidence of discrimination in the labour market because different groups have ?
comments icon0

A. different levels of education

B. different levels of job experience

C. different preferences for the type of work they are willing to do

D. all of these answers are correct
2120. An unemployed salesperson has been offered a job paying Rs500 a week. He turns that job down and continues to search for another job that pays more. The cost of this continued search is ?
comments icon0
A. The Rs500 weekly salary that he has forgone and the monetary costs incurred by continuing to search

B. Rs0, since he is currently unemployed

C. Rs difference between the weekly salary he finally accepts and the Rs500 weekly salary that he has forgone

D. the Rs500 weekly salary that he has forgone to search for another job

2121. Which of the following is Cottage Industry ?
comments icon0

A. Cement

B. Sugar

C. Handicraft

D. Textile

2122. The substitution effect of a rise in the price of labour will ____ the quantity of labour and the output, effect will ____ it
comments icon0

A. increase; increase

B. reduce; increase

C. increase; reduce

D. reduce; reduce
2123. Refer to Figure 1. The labour force participation rate is ?
comments icon0

A. 47.1 Percent

B. 65.9 Percent

C. 70.2 Percent

D. 50.2 Percent

2124. The total amount of tax you pay divided by your total income is the ?
comments icon0

A. average tax rate

B. total tax rate

C. marginal tax rate

D. proportional tax rate

2125. In the ERM, each country fixed participant Collectively the group ________ against the rest of the world?
comments icon0

A. a real exchange rate, pegged

B. a real exchange rate, floated

C. a nominal exchange rate, floated

D. a purchasing power parity, pegged

2126. The value of an asset depends upon ?
comments icon0

A. its scrap values

B. the present value of the future stream of income it can earn

C. the cost of loans

D. its depreciation

2127. During the fiscal year 2009-10 gross fixed capital formation or domestic investment grew by ?
comments icon0

A. 9.20%

B. 11.50%

C. 19.80%

D. 10.3%
2128. If there is cyclical unemployment in the economy the government might ?
comments icon0

A. Cut taxes

B. Reduce government spending

C. Increase interest rates

D. Encourage savings
2129. When did Pakistan Meteorological Department Successfully experimented artificial rainfall in Thar (Sindh) ?
comments icon0

A. 15-Aug-00

B. August 3, 2000

C. 13-Jul-00

D. 15-Sep-01

2130. In Pakistan the term the poverty trap is used to describe the fact that ?
comments icon0

A. poor people are excluded from most leisure and social activities

B. in the Pakistan poor people are heavily taxed

C. the Pakistan benefit system makes being poor vary degrading

D. if poor people earn more their benefits fall, making them no better off.
2131. The Faisalabad is also known as ?
comments icon0

A. Little California

B. Little Manchester

C. Little England

D. Little Oxford

2132. Rank utilitarianism liberalism, and libertarianism in sequence from the political philosophy that would redistribute income the greatest to the one that would redistribute income the least?
comments icon0

A. liberalism, libertarianism, utilitarianism

B. All three political philosophies argue for similar degree of income redistribution

C. utilitarianism, liberalism, libertarianism

D. libertarianism liberalism, utilarianism

E. libertariansim, utilitarianism, libertarianism
2133. The percentage of the working age population that is part of the workforce is known as the ?
comments icon0

A. diligent rate

B. non-slackers

C. workers

D. participation rate
2134. If the income effect is smaller than the substitution effect, higher net wages will ?
comments icon0
A. increase the supply of labour

B. have no effect on the supply of labour

C. reduce the supply of labour.

D. increase the demand for labour

2135. Supply side policies are considered effective in ?
comments icon0
A. encouraging technological progress

B. increasing the money supply

C. reducing taxation

D. Increasing government expenditure

2136. The price of one countrys currency in terms of another countrys currency is the ?
comments icon0

A. terms of trade

B. balance of trade

C. currency validation

D. exchange rate
2137. The long run equilibrium level of national income is the level at which ?
comments icon0

A. All investment is used in the manufacturing sector

B. Economic growth is growing

C. All investment is used to maintain the existing capital stock at its current level

D. economic growth is Zero

2138. The maximin criterion suggested by Rawlss theory of justice means that the government should aim to ?
comments icon0

A. Maximize the total utility of society

B. Maximize the well-being of the worst-off person in society

C. maximize the economic freedom of individuals by minimizing government interference in private decision making

D. minimize the difference between the rich and poor

E. minimize the well-being of the best-off person in society

2139. All of the following are parts of the business cycle except ?
comments icon0

A. boom

B. recovery

C. acceleration

D. slump

2140. Menu costs in relation to inflation refers to ?
comments icon0
A. Costs of altering price lists

B. Costs of money increasing its value

C. Costs of revaluing the currency

D. Costs of finding better rates of return

2141. Industry is the second largest sector of the economy. How much of GDP it accounts for ?
comments icon0

A. 19.70%

B. 20.50%

C. 16.50%

D. 18.2%
2142. If workers get a real wage increase this will likely ____ and _____?
comments icon0

A. encourage the use of more capital in the long run, reduce demand for all inputs

B. encourage the use of more capital increase demand for all inputs

C. encourage the use of less capital reduce demand for all inputs

D. encourage the use of less capital, reduce demand for all inputs

2143. Human capital can be described as ?
comments icon0

A. education

B. a person inherited ability

C. the tools used by workers to enhance productivity

D. the stock of expertise accumulated by a worker
2144. It is not considered discrimination when an employer offers different opportunities to individuals that differ only by them ?
comments icon0

A. sex

B. race

C. productivity

D. age

2145. Suppose that requiring motorcycle riders to wear helmets reduces the probability of a motorcycle fatality from 0.3 percent to 0.2 percent over the lifetime of a motorcycle rider and that the cost of lifetime supply of helmets is Rs5000. It is efficient for the government to require riders to wear helmets if human life is valued at ?
comments icon0

A. Rs50,000 or more

B. Rs500 or more

C. Rs 500,000 or more

D. Rs 150 or more

E. Rs100 or more

2146. If one country, with floating exchange rates, has higher inflation than its competitors we would expect its exchange rate to ?
comments icon0

A. be in short supply

B. depreciate

C. appreciate

D. revalue

2147. Multinational corporations ?
comments icon0

A. require governmental subsidies in order to conduct worldwide operations

B. always enjoy political harmony in nations where their subsidiaries operate

C. increase the transfer of technology between nations

D. make it harder to nations to foster activities of comparative advantage

2148. Where a tax can be shifted the incidence depends on ?
comments icon0

A. how many producers there are:

B. who is legally obliged to pay the tax

C. elasticities of demand and supply

D. whether there is perfect or imperfect information

2149. A rise in the real exchange rate will ________ the competitiveness of the domestic economy?
comments icon0

A. None of the above

B. do nothing to

C. increase

D. reduce
2150. Suppose each of 20 neighbours on street values street repairs at 3000 the cost of the street repair is 40,000 which of the following statements is true ?
comments icon0

A. it is not efficient to have the street repaired

B. It is efficient for each neighbour to pay 3,000 to repair the section of street in front of his/her home

C. it is efficient for the government to tax the resident 2,000 each and repair the road

D. None of these answers are true