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
2601. A profit maximizing firm is perfect competition produces where ?
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A. Total revenue is maximized

B. Marginal revenue equals average cost

C. Marginal revenue equals marginal cost

D. Marginal revenue equals zero

2602. Suppose, due to political instability, Russians suddenly choose to invest in UK assets as opposed to Russian assets Which of the following statements is true regarding UK net foreign investment ?
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A. UK net foreign investment is unchanged because only UK residents can after UK net foreign investment

B. None of the above

C. UK net foreign investment rises

D. UK net foreign investment falls
2603. Governments use of coordinated policies to achieve national economic objectives is ?
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A. development planning

B. commanding heights

C. entrepreneurial programs

D. public physical policy

2604. The opportunity cost of growth is ?
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A. a reduction in current investment

B. a reduction in current saving

C. a reduction in taxes

D. a reduction in current consumption
2605. The marginal product model assumes that ?
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A. government subsidizes schooling

B. individuals pay the full cost of their education

C. education persons migrate more

D. capital and unskilled labor are complements

2606. When economists say that developing countries have a dualistic economy the 2 parts referred to are ?
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A. rich people and poor people

B. modern sector and traditional sector

C. men and women

D. town and country

2607. Gunnar Myrdal argues that a major barrier to high labor productivity is ?
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A. The lack of bargaining power y cheap labor

B. a class system in which the elite are contemptuous of manual work

C. due to a lack of education

D. upper-and middle-class westerners

2608. Which of the following factors has been suggest as an explanation for the lack of economic growth in many poor nations ?
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A. An adequate level of social overhead capital

B. A steady rate of capital formation

C. The constraints imposed by dependency on the already-developed nations

D. The supply of human resources is too high

2609. Technological improvements in agriculture that shift the supply of agricultural commodities to the right tend to ?
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A. reduce total revenue to farmers as a whole because the demand for food is elastic

B. reduce total revenue to farmers as a whole because the demand for food is inelastic

C. increase total revenue to farmers as a whole because the demand for food is elastic

D. increase total revenue to farmers as whole because the demand for food is inelastic

2610. In the long run in perfect competition ?
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A. Total revenue = Total variable cost

B. price = marginal cost = total cost

C. price = average cost = total cost

D. price = average cost = marginal cost
2611. A reasonable measure of the standard of living in a country is ?
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A. real GDP per person

B. The growth rate of nominal GDP per person

C. Real GDP

D. nominal GDP per person.

2612. Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumers income is 100 Suppose that the price of a pair of socks falls from 5 to 2 The income effect is represented by the movement from point ?
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A. Y to point X

B. X to point Z

C. Z to point X

D. X to point Y
2613. Which of the following is NOT true about child mortality ?
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A. 19 of the 20 countries with the highest child mortality were in Africa

B. World-wide child mortality rates increased from 1990 to 2002

C. About 18 percent of the worlds deaths are among children less than five years old

D. More than 98 percent of child deaths were in LDCs

2614. Why has modern economic growth mainly been in western countries ?
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A. the use of the medieval economy

B. a strong Catholic church intervention in the economic decisions

C. an emphasis on trade restrictions

D. the rise of capitalism
2615. in long-run equilibrium in a competitive market, firms are operating at ?
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A. their efficient scale

B. intersection of marginal cost and marginal revenue

C. all of these answers are correct

D. the minimum of their average-total-cost curves

E. zero economic profit

2616. Dani Rodrik points out that ?
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A. financial liberalization in LDCs leads to collapse of the economy

B. globalization increases job insecurity

C. employers and consumers can more readily replace domestic workers with foreign workers by investing abroad or buying imports

D. an economy more open to foreign trade and investment faces a more inelastic demand for unskilled workers

2617. The consumers optimal purchase of any two goods is the point where ?
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A. the consumer reaches the highest indifference curve subject to remaining on the budget constraint

B. the consumer has reached the highest indifference curve

C. the two highest indifference curves cross

D. the budget constraint crosses the indifference curve

2618. Which of the following groups would be most harmed by a UK government budget deficit ?
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A. Foreigners who wish to buy assets in the UK

B. BAe Systems wishing to sell aircraft to Saudi Arabia

C. Lenders of loanable funds

D. UK residents wishing to buy foreign Produced cars

2619. In the long run, the competitive firms supply curve is the ?
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A. upward-sloping portion of the average total cost curve

B. portion of the marginal cost curve that lies above the average variable cost curve.

C. upward-sloping portion of the average variable cost curve

D. entire marginal cost curve

E. portion of the marginal cost curve that lies above the average total cost curve
2620. An agreement between a borrower country and the International Monetary Fund in which the country agrees to revamp its economic policies to provide incentives for higher export earnings and lower imports is a ?
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A. stabilization program

B. debt service agreement

C. program for growth

D. debt rescheduling agreement
2621. If a firm is not operating at the output necessary to achieve all scale economies, it has not achieved its ?
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A. Average efficient scale

B. Minimum efficient scale

C. Maximum efficient scale

D. Efficient scale

2622. Labor productivity is higher in DCs such as Japan and Germany than LDCs due to ?
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A. high formal education and training

B. better health and physical condition of the labor force

C. Both a and b are correct

D. None of the above is correct

2623. If the income elasticity of demand for a good is negative it must be ?
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A. a luxury good

B. an elastic good

C. an inferior good

D. a normal good

2624. uppose a consumer must choose between the consumption of sandwiches and pizza. If we measure the quantity of pizza on the horizontal axis and the quantity of sandwiches on the vertical axis and if the price of a pizza is Rs10 and the price of a sandwich is Rs5, then the slope of the budget constraint is ?
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A. 2

B. 5

C. 2-Jan

D. 10

2625. Perestroika in the former Soviet Union refers to ?
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A. economic restructuring by Gorbachev

B. None of the above

C. intensified central planning

D. total market reliance for resource allocation

2626. If income where to double and prices were to to double the budget line would ?
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A. shift outward in a parallel fashion

B. shift inward in parallel fashion

C. stay the same

D. rotates outward

E. rotate inward

2627. The disease burden could be measured by calculating _________ combining years lost through premature death and from living with disability?
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A. mortality-adjusted lifelong

B. disability-adjusted life years

C. premature living age

D. life mortality-fertility ratio

2628. Suppose a project results in a net stream of $200 per year for 4 years, but nothing thereafter, Assume that the discount rate is 5 percent. The discounted value of the total income stream over the 4-year period is ?
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A. less than zero

B. 40,000

C. more than zero but less than 800

D. 800

2629. Two or more nuclear families of parent(s) and children is known as ?
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A. two-tier family tree

B. institutional family

C. dual family

D. extended family
2630. Debt-re-scheduling is ?
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A. regular payments of interest and repayments of capital

B. an agreement with the World Bank to turn some of a debt into other forms

C. a change in debt repayment due to inability to pay

D. a program of austerity measures agreed with the IMF to make repayment possible

2631. Market price adjusted to consider differences between social cost-benefit and private cost-benefit calculations are ?
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A. exchange rates

B. price distortions

C. shadow prices

D. consumer surplus

2632. Increasing in the real GNP per capita occur when ?
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A. government programs direct resources away from investment goods to consumer goods.

B. the level of consumption expenditures rises relative to the level of savings

C. tariffs and quotas prevent countries from trading and thus prevent dollars from leaving each country

D. the rate of growth in real GNP is greater than the rate of growth in the population
2633. Suppose, due to political instability, Russians suddenly choose to purchase UK assets as opposed to Russian assets Which of the following statements is true regarding the value of the pound and UK net exports ?
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A. The pound appreciates, and UK net exports rise

B. The pound appreciates, and UK net exports fall

C. The pound depreciates, and UK net exports fall

D. The pound depreciates, and UK net exports rise

2634. Two countries that still rely on the Soviet communist model of development are ?
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A. China and Hong Kong

B. Poland and Germany

C. Cuba and North Korea

D. Ghana and Nigeria

2635. For a perfectly competitive firm ?
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A. price equals total revenue

B. price equals total cost

C. Price equals marginal revenue

D. price is greater than marginal revenue

2636. Firms in perfect competition face a?
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A. perfectly elastic demand curve

B. perfectly inelastic supply curve

C. perfectly elastic supply curve

D. perfectly inelastic demand curve

2637. A policy of developing local industries that can compete with imports is referred to as ?
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A. industrial promotion

B. export promotion

C. unbalanced growth

D. import substitution
2638. Koreas keirestsu-like corporate conglomerates is known as ?
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A. chaebol

B. bourgeoisie

C. laissez faire

D. zaibatsu

2639. Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raise its price to Rs 40 per month the number of subscribers will fall to 20000 At which of the following price does small Town Cablevision earn the greatest total revenue ?
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A. Rs 0 per month

B. Rs 40 per month

C. Either Rs 30 or Rs 40 per month because the price elasticity of demand is 1.0

D. Rs 30 per month
2640. If a fisher must sell all of his daily catch before it spoils for whatever price he is offered once the fish are caught the fishermans price elasticity of supply for fresh fish is ?
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A. one

B. zero

C. infinite

D. unable to be determined form this information

2641. A competitive firm demand curve is ?
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A. vertical

B. Horizontal

C. downward sloping

D. elastic

2642. Under Soviet-type economy-wide central planning ?
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A. resources owned by private entities moves to efficient use but not those owned publicly

B. resources are free to move to their lowest cost uses

C. most resource lack freedom to move to their highest value uses

D. resources are privately owned by capitalists

2643. Planning in many LDCs has failed because detailed programs for the public sector have not been worked out and ?
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A. monopolies dominate in the agricultural sector

B. the brain drains cost government substantially

C. governments depend primarily on their colonial masters

D. excessive controls are used in the private sector
2644. In Porters five force model conditions are more favorable for firms within an industry if ?
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A. Buyer power is high

B. Entry threat is low

C. Supplier power is high

D. Substitute threat is high
2645. Which of the following statements is not true with regard to the standard properties of indifference curves ?
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A. Higher indifference curve is preferred to lower ones

B. Indifference curves are downward sloping

C. indifference curves are bowed outward

D. Indifference curves do not cross each other

2646. Lack of absorptive capacity in developing countries results from ?
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A. inadequate government bureaucracy

B. All of the above are correct

C. small size of infrastructure

D. unsuitable technology

E. too few innovative entrepreneurs

2647. 85% of the worlds population lives in developing countries and receives about _____ of the worlds income?
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A. 30%

B. 40%

C. 20%

D. 10%

2648. Holding all factors constant except one and increasing a variable factor is expected to lead to steadily decreased marginal product of that factor, this is an example of ?
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A. decreasing returns to scale

B. an inefficient production technique

C. constant returns to scale

D. The law of diminishing returns
2649. If a supply curve for a good is price elastic then ?
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A. the quantity supplied is sensitive to changes in the price of that good

B. None of these

C. That quantity demanded is insensitive to changes in the price of that good

D. the quantity demanded is sensitive to changes in the price of that good

E. the quantity supplied is incentive to changes in the price of that good

2650. Which of the following is True is LDCs ?
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A. Labor is often underemployed, having a low alternative cost

B. Labor is usually considered the scarce factor

C. It is cheaper to hire labor in LDC because its productivity is relatively higher than in DCs

D. Adapting existing Western technology to LDC conditions requires little creativity