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
2651. Which of the following is not a nature public monopoly ?
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A. electricity

B. water supply

C. mobile phone

D. postal service

2652. Capital flight ?
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A. increases a countrys net exports and increases its long-run growth path

B. decreases a countrys net exports and increases its long-run growth path

C. increases a countrys net exports and decreases its long-run growth path

D. decreases a countrys net exports and decreases its long-run growth path

2653. An example of external diseconomies is ?
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A. scholarship for technical education

B. R&D in robotics

C. a new drug to cure AIDS

D. environmental pollution
2654. If Toyota builds a new plant in the north of England ?
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A. Once the plant starts producing cars UK GDP will rise less than UK GNP

B. once the plant starts producing cars UK GDP will rise more than UK GNP

C. None of these answers

D. There has been an increase in foreign portfolio investment in the UK

2655. Which of the following is not true ?
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A. Life expectancy is probably the best single indicator of national health levels

B. There are growing inequalities in investment in health worldwide

C. Life expectancy in Africa increased steadily from 1994 to 2003 due to better health care

D. Development generally improves the health system while better health increases productivity social cohesion, and economic welfare

2656. indifference curves for perfect substitutes are ?
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A. right angles

B. straight lines

C. bowed inward

D. nonexistent

E. bowed outward

2657. How has the relative gap between GNP per capita for Western Europe and GNP per capita for African less-developed countries changed from the late nineteenth century to the present ?
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A. declined

B. cannot be determined

C. remained the same

D. increased
2658. According to Lewiss model the dual economy grows only when ?
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A. the modern sector increases its output share relative to the traditional sector

B. modern manufacturing sector is labor intensive

C. agricultural sector uses modern equipment

D. agricultural sector hires labor economically

2659. The limit on the consumption bundles that a consumer can afford is known as ?
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A. the budget constraint

B. an indifference curve

C. the consumption limits

D. the marginal rate of substitution

2660. Thomas Malthus argued that ?
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A. an ever-increasing population is constrained only by the food supply resulting in chronic faminies

B. technological progress will continuously generate improvement in productivity and living standards.

C. none of these answers

D. labor is the only true factor of production

2661. Copper is an example of ?
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A. technology

B. physical capital

C. a renewable natural resource

D. a non-renewable natural resource
2662. In monopolistic competition ?
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A. Firms face a perfectly elastic demand curve

B. All products are homogeneous

C. Firms make normal profits in the long run

D. There are barriers to entry to prevent entry
2663. In monopolistic competition ?
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A. Products are homogeneous

B. The marginal revenue is below the demand curve and diverges

C. Demand is perfectly elastic

D. Marginal revenue = price

2664. The input-output table, when divided vertically shows ?
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A. development planning and the required information on national income growth

B. the inputs to each industry from other industries and sectors

C. how the output of each industry is distributed within the sectors of the economy

D. the planned public capital divided by feasible actual industrial projects public capital

2665. In monopolistic competition ?
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A. There are many sellers

B. There is one seller

C. There are few sellers

D. There are few buyers

2666. If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause ?
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A. no impact on either the price of the good or the number of firms in the market

B. an increase the price of the good but no increase in the number of firms in the market

C. an increase the price of the good and an increase in the number of firms in the market

D. an increase in the number of firms in the market but no increase in the price of the good
2667. Which of the following groups would not benefit from an EU imports quota on Japanese cars ?
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A. employees of EU car manufacturers

B. Shareholders of German carmaker BMW

C. Eu consumers who buy electronics from Japan

D. EU farmers who export grain
2668. If consumers always spend 15 percent of their income on food. then the income elasticity of demand for food is ?
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A. 0.15

B. 1.00

C. 1.15

D. none of these

E. 1.5

2669. For a competitive firm, its short run supply curve is ______ and its long run supply curve is _____?
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A. SMC above SAVC, LMC above LAC

B. SMC, LMC

C. SMC below SAVC, LMC bellow LAC

D. SMC below SAVC, LMC above LAC

2670. Which of the following is not true regarding the outcome of a consumers optimization process ?
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A. The consumer has reached his highest indifference curve subject to his budget constraint

B. The consumers indifference curve is tangent to his budget constraint

C. The consumer is indifferent between any two points on his budget constraint

D. The marginal utility per dollar spent on each good is the same

E. The marginal rate of substitution between goods is equal to the ratio of the prices between goods

2671. In the short run a firm will produce zero output if ?
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A. price is greater than short run average total cost

B. profit is zero

C. price is less than short run average variable cost

D. price is between short run average total cost and short run average variable cost

2672. Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raises its price Rs40 per month the number of subscribers will fall to 20000 Using the midpoint method for calculating the elasticity what is the price elasticity of demand for cable TV in Small Town ?
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A. 2

B. 1.4

C. 0.75

D. 0.66

2673. Our standards of living is most closely related to ?
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A. how hard we work:

B. our supply of natural resources because they limit production

C. our productivity because our income is equal to what we produce

D. our supply of capital because everything of value is produced by machinery

2674. Short run average total costs are equals to the sum of ____ and _____?
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A. Short run variable costs, profit

B. Short run average variable costs, profit run average fixed costs

C. Short run opportunity costs, profit

D. Short run average variable costs, profit

2675. James Pickett D. J. C. Forsyth, and N. S McBain on the basis of field research in Africa, concluded that business people often want to use the most advanced design without knowing that it may not be the most profitable. They attribute this attitude to ?
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A. intermediate technology

B. engineering mentality

C. factor price distortions

D. maximum capital absorption

2676. Developing countries, if compared with other countries, have ?
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A. a lower rate of illiteracy

B. a greater degree of equality in the income distribution

C. a lower infant mortality rate

D. a smaller percentage of the labor force in urban areas
2677. You can see the computer age everywhere but, in the productivity, statistics is a attributed to which economist ?
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A. Joseph Stieglitz

B. Dale Jorgenson

C. Robert Solow

D. Theodore W. Schultz

2678. If an increase in a consumers income causes the consumers to decrease her quantity demanded of a good, then the good is ?
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A. a substitute good

B. a normal good

C. an inferior good

D. a complementary good

2679. To increase growth, governments should do all of the following except ?
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A. Promote free trade

B. encourage research and development

C. encourage saving and investment

D. nationalize major industries

E. encourage foreigners to investment in your country

2680. Which of the following statements regarding the loanable funds market is not true ?
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A. An increase in domestic investment shifts the demand for loanable funds to the right

B. An increase in a countrys net capital outflow raises its real interest rate

C. A decrease in a countrys net capital outflow shifts the demand for loanable funds to the left

D. An increase in a countrys net capital outflow shifts the supply of loanable funds to the left
2681. Which of the following statement regarding the loanable funds market is true ?
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A. An increase in private saving shifts the supply of loanable funds to the left

B. An increase in the government budget deficit shifts the supply of loanable funds to the left

C. A decrease in the government budget deficit increase the real interest rate

D. An increase in the government budget deficit shifts the supply of loanable funds to the right

2682. The term Fourth World has been coined to describe ?
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A. Countries that still have a communist government like China and Cuba

B. countries that have fallen far behind the economic advances of the rest of the world

C. The republics of the former Soviet Union

D. the newly industrialized countries like Korea, Taiwan Malaysia

2683. Based on Mankiw Romer and Weil (1992) with conditional convergence holding fertility rates, education and government spending as a share of GDP constant ?
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A. income per capita in poor countries grows conditional upon foreign aid

B. income per capita in rich countries grows faster than in poor countries

C. income per capita is the same regardless of poor or rich countries

D. income per capita in poor countries grows faster than in rich countries
2684. The invisibly underemployed ?
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A. result from an inadequate use of workers capacities

B. are workers who are compelled to work short hours

C. None of the above is correct

D. are part-time workers who voluntarily work short hours

2685. An increase in Pakistans private saving ?
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A. increase Pakistans net exports and Pakistans net capital outflow the same amount

B. decreases Pakistans net exports and Pakistans net capital outflow the same amount

C. Increase Pakistans net exports and decrease Pakistans net capital outflow

D. decrease Pakistans net exports and increase Pakistans net capital outflow

2686. If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?
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A. downward sloping

B. upward sloping

C. perfectly elastic

D. perfectly inelastic

2687. By 2010 the U.S Census Bureau expects life expectancy in the tow southern African countries of Botswana and South Africa to be ?
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A. 30 to 40 years, about the same as in 1995

B. 30 to 40 years, a fall of more than 10 years from 1995

C. 70 years, an increase from 1995

D. 50 to 60 years, about the same as in 1995

2688. Most of the Third World/Fourth World debt was incurred in ?
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A. The colonial period

B. The early 1950s

C. most debt was incurred during the oil shocks of the 1970s

D. the early 1960s

2689. If an increase in a consumers income causes the consumer to increase his quantity demand of a good, then the good is ?
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A. a normal good

B. an inferior good

C. a complementary good

D. a substitute good

2690. In monopolistic competition of firms are making abnormal profit other firms will enter and ?
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A. the demand curve will shift inwards

B. The average variable cost will increase

C. The average cost will shift downwards

D. The marginal cost will shift outwards
2691. If the cross-price elasticity between two goods is negative the two goods are likely to be ?
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A. substitutes

B. complements

C. luxuries

D. necessities

2692. What is the ratio of population density of developing countries to the population of developed countries ?
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A. no more than 1

B. 2

C. 10

D. 20

2693. In the long run in perfect competition ?
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A. Firms are allocatively inefficient

B. Firms are productively efficient

C. The price equals total cost

D. The price equals the total revenue

2694. 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 substitution effect is represented by the movement from point ?
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A. X to point X

B. Z to point X

C. X to point Z

D. Y to point X

2695. Assume that the real income of developing Island increases from $120,000 to $160,000 from 2005 to 2006 while its population expands from 1000 to 1100 during the same period Real income per capita has increased by about ?
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A. $25

B. $40,000

C. $145

D. $100

2696. Which of the following is an example of foreign portfolio investment ?
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A. JCB builds a new plant near Manchester

B. Toyota builds a new plant in the north of England

C. EDF of France buys shares in Scottish & Southern Energy of the UK, and Scottish & Southern Energy uses the Proceeds to build a new hydro-electric power station in Scotland

D. Deutsche Bank of Germany buys some new software from UK Supplier

2697. More than seventy percent of the population of fast g: owers lives in ?
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A. Europe

B. United States

C. Russia

D. China
2698. Which of the following is true about the consumers optimum consumption bundle? At the optimum ?
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A. none of these answers are true

B. the slope of the indifference curve equals the slope of the budget constraint

C. the relative prices of the two goods equals the marginal rate of substitution

D. the indifference curve is tangent to the budget constraint

E. all of these answers are true
2699. As economic development proceeds income inequality tends to follow a(n) _____ curve?
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A. S-Shaped

B. inverted U shaped

C. L-shaped

D. convex

2700. If consumers think that there are very few substitutes for a good, then ?
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A. demand would tend to be price inelastic

B. none of these answers

C. demand would tend to be price elastic

D. Supply would tend to be price elastic