economics MCQs – Page 444

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 Review each marked answer and report any item that may be outdated or unclear.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

8861. According to the Office of National Statistics UK, a husband who chooses to stay home and take care of household is ?
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A. Employed

B. Not in the labour force

C. A discouraged worker

D. Unemployed

8862. TO reduce cyclical unemployment the government might ?
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A. Increase the budget surplus

B. Reduce interest rates

C. Increase the balance of payment deficit

D. Reduce government expenditure

8863. If, for any reason the wage is held above the competitive equilibrium wage?
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A. The quantity of labour supplied will exceed the quantity of labour demanded and there will be Unemployment

B. The quantity of labour demanded will exceed the quantity of labour supplied and there will be a labour shortage

C. The quality of workers in the applicant pool will tend to fall

D. Unions will likely Strike and the wage will fall to equilibrium

8864. If the real wage is too high in the labour market ?
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A. The quantity demanded of labour is lower than the quantity supplied

B. The quantity demanded of labour is higher than the quantity supplied

C. The quantity demanded of labour equals the quantity supplied

D. It will automatically adjust in the short run to bring equilibrium

8865. The Marginal Revenue Product is ?
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A. Upward sloping due to the law of demand

B. Upward sloping due to the law of marginal utility

C. Downward sloping due to the law of diminishing returns

D. Downward sloping due to the law of supply

8866. Some frictional Unemployment is inevitable because ?
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A. Efficiency wages may hold the wage

B. of minimum wage laws

C. All of these answers

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

E. Of unions

8867. If there is cyclical unemployment in the economy the government might ?
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A. Reduce government spending

B. Cut taxes

C. Increase interest rates

D. Encourage savings

8868. Less demand in the economy may increase unemployment; this may lead to less spending which may reduce demand further. This is called ?
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A. The downward mpc

B. The downward multiplier

C. The upward PPF

D. The upward accelerator

8869. Sector shifts tend to raise which type of unemployment ?
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A. Unemployment due to unions

B. Unemployment due to efficiency wages

C. Structural Unemployment

D. Frictional Unemployment

8870. Which of the following types of unemployment will exist even if the wage is at the competitive equilibrium ?
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A. Unemployment due to minimum-wage laws

B. Unemployment due to efficiency wages

C. Frictional Unemployment

D. Unemployment due to unions

8871. A profit maximising firm will employ labour up to the point where ?
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A. Marginal revenue product = average cost of labour

B. Marginal revenue product = marginal cost of labour

C. Marginal cost = marginal product

D. Marginal revenue = marginal product

8872. If employees cannot accept a job because of the costs of moving this is known as ?
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A. Structural immobility

B. Geographical immobility

C. Occupational immobility

D. Cyclical unemployment

8873. 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 adult population

C. Employed

D. Not in the labour force

8874. Which of the following statements about efficiency wage theory is true ?
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A. Paying above the competitive equilibrium wage may improve worker health lower worker turnover improve worker quality and increase worker effort

B. Paying the lowest possible wage is always the most efficient (Profitable)

C. Paying above the competitive equilibrium wage tends to cause workers to shirk their responsibilities

D. Firms do not have a choice about whether they pay efficiency wages or not because these wages are determined by law

8875. Demand for labour is more likely to be wage inelastic if ?
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A. It is easy to replace labour

B. Wages are a small proportion of total costs

C. Capital is a good substitute for labour

D. Demand for the final product is price elastic

8876. 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. Seasonal unemployment