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
2151. The Tragedy of the Commons is a parable that illustrates why?
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A. natural monopolies overproduce goods.

B. public goods are underproduced

C. private goods are under consumed

D. common resources are overconsumed
2152. International joint ventures can lead to welfare losses when the newly established firm ?
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A. enters markets neither parent could have entered individually

B. adds to the pre-existing productive capacity

C. yields cost reductions unavailable to parent firms

D. gives rise to increased amounts of market power
2153. When markets fail to allocate resources efficiently, the ultimate source of the problem is usually ?
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A. that property rights have not been well established

B. that prices are not high enough, so people overconsume

C. government regulation

D. that prices are not low enough so firms over produce

2154. The stock of knowledge, skills and talents that people possess is called ?
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A. skill-building investment

B. skill capital

C. human capital

D. training investment

2155. A public good is ?
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A. neither rival nor excludable

B. rival but not excludable.

C. both rival but excludable

D. not rival but excludable

2156. The opportunity cost of acquiring education is ?
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A. Course fees living expenses and textbook

B. course fees and living expenses

C. the earnings foregone

D. course fees

2157. The ratio of Industrial progress in the country is ?
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A. 6.20%

B. 5.40%

C. 8.6%

D. 4.30%

2158. The market power effect of an international joint venture can lead to welfare losses for the domestic economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting welfare gains for the overall economy ?
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A. new work rules promoting workers efficiency

B. lower wages extracted from workers

C. R&D generating welfare improved technology

D. development of more productive machinery

2159. Efficiency wages are ____ that raise _____?
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A. low wages, employment

B. high wages, employment

C. high wages, labor supply

D. high wages, productivity
2160. Which of the following is not a supply side measure ?
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A. Helping individuals to move location to find work

B. Increasing spending on existing industries

C. Providing more information

D. Increased training

2161. The formula for the marginal revenue product of labour (L is for labour, X is the product) is ?
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A. PX/MPL

B. MPL/PX

C. MPL + PX

D. (MPL) (PX)

2162. The biggest Industry of Pakistan is ?
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A. Paper

B. Textile

C. Sugar

D. cement

2163. A progressive income tax means that those with a higher income pay ?
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A. all the taxes in the economy

B. the same percentage of their income in taxes as low income people all the taxes in the economy.

C. a higher percentage of their income in taxes then low income people

D. a lower percentage of their income in taxes than low income people

2164. If borrowers and lenders agree on a nominal interest rate and inflation turns out to be less than they had expected ?
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A. borrowers will gain at the expense of lenders

B. lenders will gain at the expense of borrowers

C. None of these answers

D. neither borrowers nor lenders will gain because the nominal interest rate has been fixed by contract

2165. Space Satellite Badr II was launched on December 10, 2001 when Pakistan launched Pak Sat I ?
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A. 15-Feb-03

B. 25-Dec-02

C. 29-Dec-02

D. January 25, 2003
2166. The agro based industry is ?
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A. Carpets

B. Dairy farms

C. Iron work

D. Woodwork

2167. The Benazir Benefit income Scheme is a good example of ?
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A. none of the above

B. a benefit in kind.

C. a means tested cash benefit

D. a universal (social insurance based) benefit

2168. Reducing involuntary unemployment ?
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A. Helps the economy move on the to Production Possibility Frontier

B. Helps shift the economys Production Possibility Frontier outwards

C. Helps the economy move along its Production Possibility Frontier

D. Helps the economy move inside the Production Possibility Frontier

2169. Governments can stimulate productivity by ?
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A. Imposing higher taxes on capital

B. reducing spending in education

C. encouraging private investment

D. encouraging more labour intensive work to reduce unemployment

2170. A decrease in the supply of labour is likely to lead to ?
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A. A higher equilibrium wage and lower quantity of labour

B. A lower equilibrium wage and lower quantity of labour

C. A lower equilibrium wage and higher quantity of labour

D. A higher equilibrium wage and higher quantity of labour

2171. Unions tend to increase the disparity in pay between insiders and outsiders by ?
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A. decreasing the demand for workers in the Unionized sector

B. Increasing the wage in the Unionized sector which may create an increase in the supply of workers in the non-unionized sector

C. increasing the wage in the Unionized sector, Which may create a decrease in the supply of workers in the non-unionized sector

D. Increasing the demand for workers in the Unionized sector

2172. Sialkot is also famous for Saddles & ?
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A. paper manufacturing

B. agriculture machinery

C. musical instruments

D. harvesters

2173. If the Pakistan receives larger than expected revenues from exports then the exchange value of its currency will tend to ?
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A. appreciate

B. fluctuate more than if exports were lower

C. not be affected

D. depreciate

2174. Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?
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A. appreciation

B. fall

C. devaluation

D. depreciation

2175. A miner who has been unable to find work for so long that he has stopped looking for work is considered to be ?
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A. Unemployed

B. Not in the labour force

C. Not in the adult population

D. Employed

2176. As the wage rate per hour increases, the opportunity cost of leisure ?
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A. may increase of decrease depending on the individuals preferences.

B. remains constant

C. decreases since the customer now has more income to spend

D. increases since the cost of forgoing one hour of work increases
2177. In the year 2010-11 what was per capita income ?
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A. $975

B. $ 1095

C. $905

D. $945

2178. The participation rate in the labour force is affected by ?
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A. higher real wages

B. all of the above

C. lower fixed costs of working

D. changes in tastes between leisure and work

E. lower non-labour income

2179. In the West Women and non-whites on average receive lower incomes than white men because ?
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A. all of the above

B. they tend to work in relatively unskilled jobs

C. educational disadvantage

D. firms are reluctant to invest in training

2180. Heavy Mechanical Complex Taxila was set up with the aid of ?
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A. UK

B. China

C. Japan

D. USA

2181. A person who regularly watches BBC television programs in the UK but fails to pay their TV licence fee is known as ?
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A. a free rider

B. an unwelcome rider

C. a common resource

D. excess baggage

E. a costly rider

2182. Real business cycles are cycles in ?
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A. real output

B. actual output

C. potential output

D. international trade

2183. Real business cycle theorists argue that _________ can explain short- and long-term fluctuation in output?
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A. intertertemporal decisions of households, firms and government

B. imperfect labor markets

C. rational expectations

D. sun spot cycles

2184. A profit maximising firm will employ labour up to the point where ?
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A. Marginal revenue = marginal product

B. Marginal revenue product = average cost of labour

C. Marginal revenue product = marginal cost of labour

D. Marginal cost = marginal product
2185. A free rider is a person who ?
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A. receives the benefits of a good but avoids paying for it.

B. fails to produce goods but is allowed to consume goods.

C. produces a good but fails to receive payment for the good

D. pays for a good but fails to receive any benefit from the good

2186. An increase in the minimum wage will cause a relatively large increase in unemployment among ?
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A. skilled workers if the demand for labour is relatively inelastic

B. skilled workers if the demand for labour is relatively elastic

C. unskilled workers if the demand for labour is relatively inelastic

D. unskilled workers if the demand for labour is relatively elastic
2187. If one persons consumption of a good diminishes other peoples use of the good, the good is said to be ?
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A. a common resource

B. rival

C. a good produced by a natural monopoly

D. excludable

2188. Guest worker programs usually result in temporary migration of workers from ?
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A. impoverished countries to impoverished countries

B. wealthy countries to impoverished countries

C. impoverished countries to wealthy countries

D. wealthy countries to wealthy countries

2189. If labour market discrimination crowds women into a limited number of occupations so that the number of occupations available to men increases, then ?
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A. wages of men will be higher but the marginal productivity of men will be lower than it otherwise would be

B. the wages of men will be lower but the marginal productivity of men will be higher than it otherwise would be

C. both the wages and the marginal productivity of men will be lower than they otherwise would be

D. both the wages and the marginal productivity of men will be higher than they otherwise would be
2190. Because peoples income vary other the life cycle and because there are transitory shocks to peoples incomes the standard measures of income distribution ?
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A. could exaggerate or understate the inequality of living standards depending on whether the transitory shocks are positive or negative

B. accurately represent the true inequality of living standards

C. understate the inequality of living standards

D. exaggerate the inequality of living standards
2191. If people can borrow and lend to perfectly smooth out their lifetime living standards, then ?
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A. life-cycle income is a good measure of the distribution of living standards.

B. none of these answers

C. transitory income is a good measure of the distribution of living standards

D. current annual income is a good measure of the distribution of living standards.

E. permanent income is a good measure of the distribution of living standards.
2192. A combined measure of productivity that takes account of both labor and capital productivity is known as ?
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A. total productivity

B. total exploitation

C. total factor productivity

D. labour/capital productivity

2193. Which of the following is an example of a common resource ?
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A. iron one

B. a firework displays

C. national defense

D. a national park
2194. A private good is ?
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A. rival but not excludable

B. not rival but excludable

C. both rival excludable

D. neither rival nor excludable

2195. Constrained choice is relevant for households ?
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A. making spending decision but not labour-supply decision.

B. making both spending and labour-supply decisions

C. considered to be poor but not for those who are considered to be rich

D. making labour-supply decisions but not spending decisions.

2196. Which of the following could result in women being paid less than men ?
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A. women preferring to work in pleasant clean safe work places

B. women obtaining less human capital because they dont plan to work continuously to the age of retirement

C. all of these answers

D. Women entering and leaving the labour force to care for children

E. customers preferring to deal with men

2197. The amount of unemployment that the economy normally experiences is known as ?
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A. cyclical unemployment

B. The natural rate of unemployment

C. frictional unemployment

D. efficiency wage unemployment

2198. If people are made unemployed because of a fall in aggregate demand this is known as ?
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A. Cyclical unemployment

B. Frictional unemployment

C. Structural unemployment

D. Seasonal unemployment
2199. A minimum wage law tends to ?
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A. Help all teenagers because they receive a higher wage than they would otherwise

B. Create more Unemployment is high-skill job markets than in low-skill job markets

C. Create more unemployment in low-skill job markets than in high-skill job markets

D. have no impact on unemployment as long as it is set above the competitive equilibrium wage

2200. The idea that the demand for car workers stems from the demand for cars is ?
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A. the value of the marginal product of auto workers.

B. indirect demand

C. output demand

D. derived demand