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
2251. Which one of the following types of Unemployment results from the wage being held above the competitive equilibrium wage ?
comments icon0
A. Structural unemployment

B. None of these answers

C. Cyclical Unemployment

D. Frictional Unemployment

E. Sectoral Unemployment

2252. In a perfectly competitive labour market firms are wage takers and the marginal cost of labour equals?
comments icon0

A. The marginal product

B. The marginal revenue

C. The average cost of labour

D. The total cost of labour
2253. Under Which of the following conditions would you prefer to be the borrower ?
comments icon0

A. The nominal rate of interest is 12 percent and the inflation rate is 9 percent

B. The nominal rate of interest is 5 percent and the inflation rate is 1 percent

C. The nominal rate of interest is 20 percent and the inflation rate is 25 percent

D. The nominal rate of interest is 15 percent and the inflation rate is 14 percent

2254. The Chiniot city is known for its ornate brickwork and ?
comments icon0
A. wooden work

B. laquer work

C. fire work

D. None of them

2255. The first nuclear power plant was set up in Karachi in ?
comments icon0

A. 1970

B. 1972

C. 1971

D. 1973

2256. A tax whose burden is the same proportion of income for all households is ?
comments icon0

A. an equal tax

B. a regressive tax

C. a progressive tax

D. a proportional tax
2257. Because in-kind transfers are not accounted for in standard measures of income distribution the standard measures of income distribution ?
comments icon0

A. understate the inequality of living standards

B. accurately represent the true inequality of living standards

C. exaggerate the inequality of living standards

D. could exaggerate of understate the inequality of living standards depending on whether the transfers are goods or services.

2258. According to the Office of National Statistics UK, a husband who chooses to stay home and take care of household is ?
comments icon0

A. A discouraged worker

B. Unemployed

C. Not in the labour force

D. Employed

2259. Housing Benefit is a good example of ?
comments icon0
A. a means tested cash benefit

B. a benefit in kind

C. none of the above

D. a universal (social insurance based) benefit

2260. Mianwali is important for ?
comments icon0

A. agriculture

B. wood work

C. irrigation work

D. Embroidery work

2261. The multiplier accelerator model assumes ____ depends on ______?
comments icon0

A. stock building interest rates

B. consumption expected future profits

C. investment expected future profits

D. investment, interest rates

2262. Which of the following statements is correct ?
comments icon0

A. The nominal interest rate is the inflation rate minus the real interest rate

B. The nominal interest rate is the real interest rate minus the inflation rate.

C. The real interest rate is the nominal interest rate minus the inflation rate

D. none of these answers

2263. A Gini coefficient of one means that ?
comments icon0

A. all the income is received by the top 20% of the income distribution

B. income is distributed equally

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

D. one family has all the income and every one else has nothing.
2264. Real business cycle theories suggest that _____ to correct departures from the desired growth path?
comments icon0
A. There is a role for stabilizing output ever the business cycle

B. There is a role for fiscal policy

C. There is a role for monetary policy

D. There is a role for supply-side policy

2265. The downward sloping marginal physical product of labor is the firms ?
comments icon0

A. Supply of labor

B. ginal revenue product of labor

C. marginal cost of labour

D. Short-run demand curve for labor
2266. The biggest Industrial unit in public sector is ?
comments icon0
A. Pakistan Steel Mili

B. Telephone Industry of Pakistan

C. Karachi Shipyard

D. State Cement

2267. Occupational immobility of labour occurs if ?
comments icon0
A. People do not have the right skills to work

B. People lack information

C. People do not want to work

D. People cannot afford to move location

2268. Which of the following government policies would fail to lower the unemployment rate ?
comments icon0

A. Establishing worker training Programs

B. Establishing employment agencies

C. Reducing unemployment benefits

D. Establishing right-to-work laws

E. Raising the minimum wage
2269. If the minimum wage is set above the equilibrium wage rate, then another thing unchanged ?
comments icon0
A. There will be equilibrium in the labour market

B. There will be excess supply in the labour market

C. More people will be employed

D. There will excess demand in the labour market

2270. When government employ cost-benefit analysis to help them decide whether to provide a public good, measuring benefits is difficult because ?
comments icon0

A. there are no benefits to the public since a public good is not excludable

B. the benefits are infinite because a public good is not rival and an infinite amount of people can consume it at the same time

C. one can never place a value on human life or the environment

D. respondents to naires have little incentive to tell the truth.
2271. A reservation wage is the ?
comments icon0

A. tip necessary to get a waiter to reserve a table

B. minimum wage the worker is willing to accept

C. competitive equilibrium wage.

D. Maximum wage the firm is willing to pay

2272. The poverty trap refers to ?
comments icon0

A. a situation in which those receiving state benefits are discriminated against by employers and so find it more difficult to find jobs.

B. a situation in which workers are unable to find jobs.

C. a situation in which those receiving state benefits may be almost no better off if they choose to work more to earn more income for themselves and their families because doing so will mean they have to pay back the benefits they have previously received

D. a situation in which those receiving state benefits may be almost no better off if they choose to work more to earn more because doing so will reduce the amount of benefit income to which they are entitled and increase the amount to tax
2273. The business cycle describes fluctuations in output around the?
comments icon0

A. boom

B. recession

C. trend path of output

D. short-run fluctuations in output

2274. Utilitarianism suggests that the government should choose policies that maximize the total utility of everyone in society by ?
comments icon0

A. allowing each individual to maximize their own utility without interference from the government

B. redistributing income from rich to poor because due to the diminishing marginal utility of income, taking a pound from the rich reduces their utility by less than the gain in utility generated by giving a pound to the poor

C. istributing income from rich to poor because this would maximize the well-being of the worst-off person in society

D. redistributing income from rich to poor because this is what the members of society would choose to do if they were behind a veil of ignorance

2275. VAT is a good example of which kind of tax ?
comments icon0

A. specific

B. Excise duty

C. Direct

D. Ad valorem
2276. Policies to encourage productivity do not include ?
comments icon0

A. encouraging innovation

B. building more retail outlets

C. encouraging risk-taking

D. encouraging R & D

2277. A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?
comments icon0

A. encourages

B. facilitates

C. undermines

D. enhances

2278. The belief that the rate of growth depends upon technological progress facilitated by institutions incentives and government is known as ________ growth theory?
comments icon0
A. endogenous

B. beta

C. convergence

D. exogenous

2279. The record of a countrys imports and exports of of goods and services plus net investment incomes and current transfers of money to and from abroad, is called its ?
comments icon0
A. balance of payments on current account

B. visible trade balance

C. balance of payments

D. balance of trade

2280. Which of the following is an example of a reason why firms might pay efficiency wages ?
comments icon0

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

B. At equilibrium wages workers often quit to find better jobs.

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

2281. A congested toll road is ?
comments icon0

A. a common resource

B. a public good

C. a good produced by a natural monopoly

D. a private good
2282. Differences in wages that result from differences in working conditions are known as ?
comments icon0

A. job differentials.

B. occupational differentials

C. compensating differentials

D. search differentials

2283. Rawlss miximin criterion does not mean that there should be redistribution so as to equalise everyones incomes in society because ?
comments icon0

A. such redistribution would amount to confiscation of honestly earned income from higher earners and so would be unjust.

B. such redistribution would not maximize the total income of all members of society

C. Such redistribution would mean that those who worked hard were no better off than those who were lazy and this would be unfair.

D. Such redistribution would remove the incentive to work hard, so societys total income would fall, and so the least well off person would be worse off than they could be under a system in which there was some inequality income.
2284. Demand for labour is more likely to be wage inelastic if ?
comments icon0

A. It is easy to replace labour

B. Capital is a good substitute for labour

C. Wages are a small proportion of total costs

D. Demand for the final product is price elastic

2285. Rawlss suggestion that policy should be directed at maximizing the welfare of the least well off person in society is derived from ?
comments icon0

A. the idea that people should consider policy as if behind a veil of ignorance as to what their circumstances might be in society, and the idea that as long as there is no theft then there is no need for governments to intervene and redistribute income.

B. the idea that people should consider policy as if behind a veil of ignorance as to what their circumstances might be in society, and the idea that people will then be particularly concerned about the possibility that they might find themselves at the bottom of the income distribution

C. the idea that people a veil of ignorance as policy as if behind a veil of ignorance as to what their circumstances might be in society, and the ignorant people should be looked after

D. the idea that everyone in society should have an equal income

2286. TO reduce cyclical unemployment the government might ?
comments icon0

A. Increase the budget surplus

B. Reduce government expenditure

C. Reduce interest rates

D. Increase the balance of payment deficit

2287. When did Pakistan launched its first space satellite Badr I largely designed and fabricated by SUPARCO ?
comments icon0

A. 10-Aug-91

B. 12-Sep-92

C. 16-Oct-89

D. July 16, 1990
2288. In the short run unemployment may fall below the natural rate of unemployment if ?
comments icon0
A. Nominal wages have risen more than inflation

B. Nominal wages have risen less than unemployment

C. Nominal wages have risen at the same rate as inflation

D. Nominal wages have risen less than inflation

2289. Identify below what does NOT affect productivity ?
comments icon0

A. Private investment in new physical caital

B. Innovation and the application of new technology

C. The phase of the lunar cycle

D. Public investment in education

2290. A fall in demand for labour is likely to lead to ?
comments icon0

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

2291. If employees cannot accept a job because of the costs of moving this is known as ?
comments icon0

A. Geographical immobility

B. Cyclical unemployment

C. Occupational immobility

D. Structural immobility

2292. All of the following are benefits of the single market except ?
comments icon0

A. it intensified competition

B. it is easier to book holidays in member countries

C. economies of scal

D. it allows countries to exploit their comparative advantage, more fully

E. firm could more readily exploit

2293. In 1989, the CPI was 124.0 in 1990, it was 130.7 What was the rate of inflation over this period ?
comments icon0

A. You cant tell without knowing the base year

B. 30.7 percent

C. 5.4 percent

D. 5.1 percent

2294. The best way to achieve economic growth is to ?
comments icon0

A. increase personal consumption

B. save more

C. reduce taxation

D. increase government spending

2295. A current account deficit means that a country may ?
comments icon0

A. increases its foreign currency reserves

B. reduce its stock of foreign assets

C. increase its stock of foreign assets

D. increases its savings

2296. A positive externality affects market efficiency in a manner similar to a ?
comments icon0

A. private good

B. public good

C. rival good

D. common resource

2297. Which of the following is not part of a workers human capital ?
comments icon0

A. experience

B. education

C. effort

D. on the job training

E. all of these answers are parts of a workers human capital

2298. Which of the following are potential solutions to the problem of air pollution?
comments icon0

A. Auctions off pollution permits.

B. all of these answers

C. Regulate the amount of pollutants that firms can put in the air

D. Grant right of the clean air to citizens so that firms must purchase the right to pollute

2299. The Marginal Revenue Product is ?
comments icon0

A. Downward sloping due to the law of diminishing returns

B. Downward sloping due to the law of supply

C. Upward sloping due to the law of demand

D. Upward sloping due to the law of marginal utility

2300. An increase in costs will ?
comments icon0

A. Reduce the natural rate of unemployment

B. Increase the productivity of employees

C. Shift aggregate supply

D. Shift aggregate demand