economics MCQs – Page 453

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 Review each marked answer and report any item that may be outdated or unclear.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
9041. By restricting labor supply a trade union can _____ and _______?
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A. increase the wage, lower employment

B. maintain the wage, lower employment

C. increase the wage, increase employment

D. maintain the wage, increase employment

9042. Which of the following is not a reason why some workers are paid above the equilibrium wage ?
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A. efficiency wages

B. unions

C. beauty

D. minimum-wage laws

9043. The marginal revenue product of capital is the ?
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A. change in companys share price

B. change in a companys balance sheet when it acquires new plant

C. additional value of output from using more capital

D. changing value of the capital stock

9044. Which of the following statements regarding discrimination is true ?
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A. The existence of a wage differential among groups is strong evidence of discrimination in the labour market

B. Discrimination can only persist in a competitive labour market it customers are willing to pay to maintain the discriminatory practice or the government requires discrimination

C. Bigoted employers are the main source of a persistent discriminatory wage differential in a competitive market

D. Discrimination cannot exist in a competitive labor market

9045. 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 ?
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A. coal miners must have greater human capital than others

B. we have observed a compensating differential

C. coal miners must be more attractive than other workers

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

9046. Which of the following is not part of a workers human capital ?
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A. all of these answers are parts of a workers human capital

B. education

C. experience

D. on the job training

E. effort
9047. Efficiency wages are ____ that raise _____?
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A. high wages, productivity

B. high wages, employment

C. high wages, labor supply

D. low wages, employment

9048. All of the following would tend to increase a workers wage except ?
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A. doing a job that is fun

B. Working the night shift

C. working harder

D. having a greater amount of natural ability

E. more education

9049. If workers get a real wage increase this will likely ____ and _____?
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A. encourage the use of less capital, reduce demand for all inputs

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

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

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

9050. A profit-maximizing firm will hire labour until _____ equals the _______?
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A. long run marginal revenue, long run marginal cost

B. labor output ratio, capital output ratio

C. marginal revenue, marginal cost

D. marginal cost of labor, marginal revenue product
9051. Involuntary unemployment exists if workers ?
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A. will not work because the hours are anti-social

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

C. would work at the going wage but cant find jobs

D. will not work at the offered wage

9052. Land will be allocated between competing uses so that ?
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A. the equilibrium rental rate equilibrium total demand with supply

B. housing gets priority

C. industry gets priority

D. farming gets priority

9053. Economists have hypothesized that the widening gap between the wages of unskilled workers and skilled workers may be due to ?
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A. decrease in the demand for unskilled workers are more poorly educated

B. increase in the number of unskilled workers available due to immigration into the UK.

C. increase in the number of unskilled workers available because workers are more poorly educated

D. decrease in the demand for unskilled workers because of increases in technology and increases in international trade
9054. Which of the following is true regarding the earning of attractive versus unattractive workers ?
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A. Attractive people tend to earn less because attractive people are viewed as shallow and more self-absorbed and therefore, as less productive

B. Attractive people tend to earn less because attractive people usually have less human capital

C. Attractive people tend to earn more because attractive people usually have greater human capital

D. Attractive people tend to earn more because they may actually have a larger value of marginal product
9055. Top footballers tend to earn more than lecturers because ?
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A. lecturers are lazy

B. the labor markets are imperfect

C. top footballers are relatively scarce in relation to lecturers

D. footballers give more entertainment

9056. The difference between gross investment and net investment is ?
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A. dwellings

B. inventories

C. productive investment

D. depreciation of the existing capital stock
9057. The opportunity cost of acquiring education is ?
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A. the earnings foregone

B. course fees

C. course fees and living expenses

D. Course fees living expenses and textbook

9058. Which of the following professionals is most likely to be able to generate the income of a superstar ?
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A. the best writer

B. the best professor

C. the best medical doctor

D. The best accountant

E. All of these answers participate in markets that could generate a superstar

9059. According to the signaling view of the education ?
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A. can make any worker into a superstar

B. only helps firms sort workers into high ability and low-ability workers

C. increases human capital and the wages of workers

D. reduces the wage gap between high-skill and low-skill workers.

9060. Which of the following could result in women being paid less than men ?
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A. women obtaining less human capital because they dont plan to work continuously to the age of retirement

B. all of these answers

C. women preferring to work in pleasant clean safe work places

D. customers preferring to deal with men

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