economics MCQs – Page 443

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 Review each marked answer and report any item that may be outdated or unclear.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 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
8841. Mariam earns more than Seamus and she came by her income fairly and honestly which of the following political philosophies would argue against the redistribution of income from Mariam to Seamus ?
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A. none of these answers

B. all of these answers

C. libertarianism

D. utilitarianism

8842. The Benazir Benefit income Scheme is a good example of ?
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A. a universal (social insurance based) benefit

B. a benefit in kind.

C. none of the above

D. a means tested cash benefit

8843. The marginal tax rate is ?
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A. your total income divided by the total amount of tax you pay.

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

C. the tax rate you pay on any additional income that you earn.

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

8844. A progressive income tax means that those with a higher income pay ?
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A. the same percentage of their income in taxes as low income people all the taxes in the economy.

B. all the taxes in the economy

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

D. a higher percentage of their income in taxes then low income people
8845. The greatest advantage of a negative income tax is that it ?
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A. reduces the cost to the government of fighting poverty

B. would not provide benefits to lazy people

C. generates a smaller disincentive to work than most alternative anti-poverty policies.

D. ensures that the poor actually receive what the government thinks they need does all these answers.

8846. 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.

8847. The stock of knowledge, skills and talents that people possess is called ?
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A. training investment

B. human capital

C. skill capital

D. skill-building investment

8848. The marginal revenue product of labour is ?
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A. the additional revenue a firm earns by employing on additional unit of labour

B. the additional revenue the firm makes by selling one unit of labour.

C. the additional profit a firms earns by employing one additional unit of labour

D. the marginal product of capital times the price of labour.

8849. 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?
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A. utilitarianism, liberalism, libertarianism

B. libertarianism liberalism, utilarianism

C. liberalism, libertarianism, utilitarianism

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

E. libertariansim, utilitarianism, libertarianism
8850. A Gini coefficient of zero means that the ?
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A. all the income is received by the top 20% of the income distribution

B. one person has all the income and every one else has nothing

C. the income is split equally between the top 20% and the rest of the distribution

D. income is equally distributed

8851. A minimum wage law tends to ?
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A. Create more unemployment in low-skill job markets than in high-skill job markets

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

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

D. Help all teenagers because they receive a higher wage than they would otherwise

8852. Supply side policies are most appropriate to cure ?
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A. Cyclical unemployment

B. Involuntary unemployment

C. A fall in aggregate demand

D. Voluntary unemployment

8853. Union might increase efficiency in the case Where they ?
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A. Lower the wage of local outsiders

B. Raise the wage for insiders above the competitive equilibrium

C. Offset the market power of a large firm that is the dominant employer in a region

D. Threaten a strike but dont actually follow through so there are not lost hours of work

8854. Which of the following government policies would fail to lower the unemployment rate ?
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A. Establishing employment agencies

B. Establishing right-to-work laws

C. Raising the minimum wage

D. Reducing unemployment benefits

E. Establishing worker training Programs

8855. Reducing involuntary unemployment ?
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A. Helps the economy move along its Production Possibility Frontier

B. Helps the economy move on the to Production Possibility Frontier

C. Helps the economy move inside the Production Possibility Frontier

D. Helps shift the economys Production Possibility Frontier outwards

8856. Occupational immobility of labour occurs if ?
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A. People cannot afford to move location

B. People do not have the right skills to work

C. People do not want to work

D. People lack information

8857. Unions tend to increase the disparity in pay between insiders and outsiders by ?
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A. increasing the wage in the Unionized sector, Which may create a decrease in the supply of workers in the non-unionized sector

B. Increasing the demand for workers in the Unionized sector

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

D. decreasing the demand for workers in the Unionized sector

8858. Which of the following is an example of a reason why firms might pay efficiency wages ?
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A. At equilibrium wages workers often quit to find better jobs.

B. At equilibrium wages workers sleep when the boss is not looking because workers are not deeply concerned about being fired

C. All of these answers

D. At equilibrium wages, workers cannot afford a healthy diet so they fall asleep at work due to a lack of energy

E. At equilibrium wages only minimally qualified workers apply for the job

8859. Refer to Figure 1. The unemployment rate is ?
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A. Not Enough

B. 5.8 Percent

C. 5.7 Percent

D. 3.2 Percent

8860. If the minimum wage is set above the equilibrium wage rate, then another thing unchanged ?
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A. More people will be employed

B. There will excess demand in the labour market

C. There will be equilibrium in the labour market

D. There will be excess supply in the labour market