economics MCQs – Page 49

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 Review each marked answer and report any item that may be outdated or unclear.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
961. The opportunity cost of a student is____________?
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A. What the student could have earned in the best job available by not studying

B. A loan from the bank

C. Course fees and rent

D. What the student will earn after graduation

962. Which of the following statements is true ?
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A. Long-term bonds tend to pay less interest than short-term bonds

B. Investment funds are riskier than single stock purchases because the performances of so many different firms can affect the return of a mutual fund

C. Government bonds pay less interest than comparable corporate bounds

D. A stock index is a directory used to locate information about selected stocks.

963. If your income doubles and the prices of the goods you buy double then your demand for these goods will likely?
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A. shift

B. not change

C. increase

D. decrease

964. An increase in the price of a good along a stationary demand curve ?
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A. improves the material welfare of the buyers.

B. decrease consumer surplus

C. increase consumer surplus.

D. improves market efficiency.

965. In his empirical tests, Wassily Leontief used an input-output table to ?
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A. calculate the capital productivity of American capital relative to foreign capital

B. All of the above

C. calculate the labor productivity of America workers relative to foreign workers

D. calculate the capital and labor required to produce $1 million of U.S exports and imports
966. In developed countries, tariffs on raw materials tend to be ?
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A. equal to tariffs on manufactured goods

B. higher than on manufactured goods

C. highest of all

D. lower than on manufactured goods
967. The industrial concentration ratio is the proportion of an industrys output ?
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A. as a percentage of production and marketing

B. produced by the three largest firms in the industry

C. and labor intensities relative to labor productivity

D. produced in cement, machine tools and steel industries

968. An increase in the price of a good along a stationary supply curve______________?
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A. decrease producer surplus

B. improves market equity

C. increase producer surplus

D. does all the things describe in these answers

969. A way of helping depressed regions by having lower wages lower local taxes and lower unemployment benefit has been suggested as ?
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A. market-orientated economists

B. Keynesian.

C. left-wing theorists

D. new-Keynesian

970. Which best describes a demand curve ?
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A. The quantity consumers are willing to sell

B. The quantity consumers are willing and able to buy each and every price all other things changed

C. The quantity consumers are willing and able to buy at each and every income all other things unchanged

D. the quantity consumers would like to buy in an ideal world

971. A tariff that prohibits imports has only ?
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A. consumption effect and protection effect

B. revenue effect and protection effect

C. redistribution effect and consumption effect

D. a revenue effect and redistribution effect

972. A tariff ______ increase a country overall welfare?
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A. can sometimes

B. will always

C. None of the above

D. will never

973. Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers wished to move output to its long run natural rate they should attempt to ?
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A. shift short-run aggregate supply to the right

B. shift aggregate demand to the right

C. Shift short run aggregate supply to the left

D. Shift aggregate demand to the left

974. Improved training of employees would ?
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A. Shift aggregate demand to the right

B. Shift aggregate supply to the left

C. Shift aggregate supply to the right

D. shift aggregate demand to the left

975. The increase in total cost when one more unit is produced is known as ?
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A. limited cost

B. marginal cost

C. opportunity cost

D. average cost
976. If no imported inputs (hard-disk drive) go into the domestic production of a final product (desktop computer) then the ?
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A. nominal tariff rate on the final product equals the effective tariff rate on the product

B. nominal tariff rate on the final product is less than the effective tariff rate on the final product

C. nominal tariff rate on the final product is greater than the effective rate on the product

D. None of the above

977. If a producer has market power (can influence the price of the product in the market) then free market solutions ?
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A. are inefficient

B. are equitable.

C. maximize consumer surplus

D. are efficient

978. The price of apples falls by 5% and quantity demanded increases by 6% This means that demand is ?
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A. elastic

B. zero elastic

C. perfectly elastic

D. inelastic

979. Suppose that the price of a new bicycle is Rs300 Natalie values a new bicycle at Rs 400 it costs Rs200 for the seller to produce the new bicycle. What is the value of total surplus if Natalie buys a new bike ?
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A. Rs500

B. Rs300

C. Rs400

D. Rs200

980. An increase in price all other things unchanged leads to ?
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A. An extension of demand

B. Shift demand outwards

C. A contractions of demand

D. Shift demand inwards