economics MCQs – Page 46

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 Review each marked answer and report any item that may be outdated or unclear.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

901. Structural economists from the United Nations Economic Commission for Latin America (ECLA) emphasized ?
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A. currency devaluation

B. long-run institutional and structural economic change

C. contractionary monetary and fiscal policies

D. short term-adjustment with a human face

902. New classical economists advocate reducing welfare payments to people who are unemployed or single parents. The economic reasoning used was that this would ?
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A. help small businesses

B. weaken the power of trade unions

C. reduce poverty

D. reduce unemployment

903. A contraction in supply occurs when ?
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A. The quantity supplied falls when the price falls

B. Demand shifts outwards

C. The supply curve shifts inwards

D. The supply curve shifts outwards

904. A firm that makes profit in addition to normal profit is making ?
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A. supernormal profit

B. Accounting profit

C. Economic profit

D. Normal profit

905. An increase in the costs of production will ?
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A. Shift demand outwards

B. Shift demand inwards

C. Shift supply inwards

D. Shift supply outwards so more is supplied at each and every price, all other things unchanged

906. Consumer surplus is the area ?
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A. below the demand curve and above the price.

B. above the supply curve and below the price.

C. below the demand curve and above the supply curve

D. above the demand curve and below the price.

E. below the supply curve and above the price.

907. According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ?
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A. Devote excessive amounts of resources to agricultural production

B. Import products that are land-intensive

C. Devote insufficient amounts of resources to agricultural production

D. Export products that are land-intensive

908. If we consider the impact on both consumers and producers, then protection of the steel industry is ?
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A. Not in the interest of the U.S as a whole, nor in the interest of the state of Pennsylvania

B. Not in the interest of the U.S as a whole, but it might be in the interest of the state of Pennsylvania

C. In the interest of the U.S as a whole and in the interest of the state of Pennsylvania

D. In the interest of the U.S as a whole but not in the interest of the state of Pennsylvania where steel mills are located

909. Increased levels of spending on imports ?
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A. shift aggregate supply to the right

B. shift aggregate supply to the left

C. shift aggregate demand to the left

D. shift aggregate demand to the right

910. If a small country imposes a tariff on an imported good, its terms of trade will ?
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A. not change

B. improve

C. worsen

D. any of these

911. Positive cross elasticities suggest that goods are ____ and negative cross-elasticities that goods are ?
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A. normal, complements

B. substitutes complements

C. substitutes inferior

D. normal, inferior

912. The comparative advantage model of Ricardo was based on ?
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A. demand conditions underlying specialization and trade

B. intraindustry specialization and trade

C. interindustry specialization and trade

D. income conditions underlying specialization and trade

913. The Setrite Corporation produce chairs. An economist working for the firm predicts that if peoples incomes rise next year, then the demand for our chairs will for our chairs will increase ceteris paribus The accuracy of the economists prediction depends on whether the chairs Setrite Produce ?
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A. have few complementary goods.

B. are normal goods

C. have many complementary goods.

D. have few substitutes.

914. According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?
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A. similar endowments of natural resources

B. similar wage levels

C. similar levels of technology

D. similar per-capita incomes

915. The price elasticity of supply is +4 The price increases by 15% sales were originally 200 units What will they be now ?
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A. 120 units

B. 320 units

C. 60 units

D. 80 units

916. The price elasticity of demand is a negative number this means ?
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A. Demand is price elastic

B. Demand is price inelastic

C. An increase in income will reduce the quantity demanded

D. The demand curve is downward sloping

917. Countries facing a persistent external deficit can ?
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A. borrow overseas

B. Undertake expenditure-reducing policies

C. increase trade restrictions and exchange controls

D. . undertake expansionary monetary and fiscal policies

918. In general, if a benevolent social planner wanted to maximize the total benefits received by buyers and sellers in a market, the planner should?
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A. choose a price above the market equilibrium price

B. Choose any price the planner wants because the losses to the sellers (buyers) from any change in price are exactly offset by the gains to the buyers (sellers).

C. choose a price below the market equilibrium price

D. allow the market to seek equilibrium on its own.

919. When the decrease in the price of one good causes the demand for another good to decrease, the goods are_________?
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A. complements

B. nromal

C. substitutes

D. inferior

920. Average income increase from Rs20,000 p.a to Rs 22,000 p.a Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ?
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A. Income elasticity is -2

B. The good is inferior

C. Demand is price inelastic

D. The product is normal

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