economics MCQs – Page 454

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 Review each marked answer and report any item that may be outdated or unclear.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

9061. the cost of using capital services is the ?
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A. wage rate of capital

B. rental rate for capital

C. marginal capital cost

D. interest charges

9062. A wage differential among groups may not by itself be evidence of discrimination in the labour market because different groups have ?
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A. different levels of job experience

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

C. different levels of education

D. all of these answers are correct

9063. In a competitive market, which of the following is least, likely to be the source of a persistent discriminatory wage differential ?
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A. the government

B. the employer

C. the customer

D. All of these answers could be source of a persistent discriminatory wage differential

9064. Which of the following explanations of wage differentials is not likely to be true ?
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A. Men have more human capital than women

B. None of the above

C. Men have more job experience than women

D. Employers in competitive markets are bigots

9065. In the short run, the supply of capital is ________ and in the long run will depend on _______?
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A. fixed, rental rate of capital

B. variable, interest rates

C. variable, technology

D. fixed, expectations

9066. The participation rate in the labour force is affected by ?
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A. lower non-labour income

B. all of the above

C. lower fixed costs of working

D. changes in tastes between leisure and work

E. higher real wages

9067. Which of the following is likely to generate a compensating differential ?
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A. One employee is willing to work the nightshift while another is not.

B. One employee is more attractive than another

C. All of these answers generated

D. One employee works harder than another

E. One employee is more educated than another

9068. 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. firms are reluctant to invest in training

C. educational disadvantage

D. they tend to work in relatively unskilled jobs

9069. Human capital can be described as ?
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A. the tools used by workers to enhance productivity

B. the stock of expertise accumulated by a worker

C. a person inherited ability

D. education

9070. Skilled labor is relatively scarce because ?
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A. it is costly to acquire human capital

B. too few student places in higher education

C. teachers salaries are too low

D. there are too few teachers

9071. Different capital intensity in different industries is mainly explained by _______ and ________?
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A. technology, the ease of factor substitution

B. patents, skill shortages

C. government grants, international competition

D. wage differentials, skill levels

9072. Competitive markets tend to ?
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A. reduce labour market discrimination because non-discrimination firms will employ cheaper labour earn more profits and drive discriminating firms out of the market

B. increase labour market discrimination because bigoted employers can charge any price they want in a competitive market to cover the cost of their discrimination

C. have no impact on labour market discrimination

D. Increase labor market discrimination because some workers can charge more for their services than other workers in a competitive market

9073. The downward sloping marginal physical product of labor is the firms ?
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A. ginal revenue product of labor

B. marginal cost of labour

C. Supply of labor

D. Short-run demand curve for labor

9074. The value of an asset depends upon ?
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A. its depreciation

B. its scrap values

C. the cost of loans

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

9075. Unions achieve a higher wage differential the more _____ and the more ______?
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A. the economy is growing, people prefer leisure

B. inelastic the demand for labour, they can restrict the supply of labour

C. members they have, aggressive they behave

D. the productivity is growing vacancies exist

9076. According to the human capital view of education ?
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A. increases human capital and the wages of workers

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

C. can make any worker into a superstar

D. has no impact on the human capital of workers?

9077. In order for a market to support superstars it must have which of the following characteristics ?
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A. It must be involved in professional athletics

B. Every customer must want the good supplied by the best producer and the technology must exist for the best producer to supply every customer at low cost

C. Every customer must be willing to pay an enormous amount for the product and the product must be a necessity

D. Every customer must be indifferent to the price they pay, and the seller must be a competitor in the market for the product

9078. It is not considered discrimination when an employer offers different opportunities to individuals that differ only by them ?
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A. sex

B. race

C. age

D. productivity

9079. If two jobs require the same amount of skills and experience the job that pays the most is most likely to be the one that is ?
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A. fun

B. safe

C. unpleasant

D. all these answers