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
2701. The low-income economies generally have the following except ?
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A. a per capital GNP of more than $900

B. deficient infrastructures

C. low life expectancies

D. low savings

2702. Which of the following statements about trade policy is true ?
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A. A restrictive imports quota increases a countrys net exports

B. A countrys trade policy has no impact on the size of its trade balance

C. None of these answers

D. A restrictive import quota decreases a countrys net exports

2703. In low-income countries the average agricultural family produces a surplus ?
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A. of zero

B. large enough of feed five other families

C. enough to supply only a small nonagricultural population

D. large enough to feed 25 other families

2704. In a competitive industry each buyer and seller ?
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A. Producer different products

B. is a price taker

C. Prevents the entry of competitors

D. Believes that can influence price

2705. An increase in the government budget deficit ?
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A. has no impact on the real interest rate and fails to crowed out investment

B. Increases the real interest rate and crowds out investment

C. None of these answers

D. decreases the real interest rate and crowds out investment

2706. The short run marginal cost curve cuts the short run total cost curve and short run average variable cost curve ?
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A. When they are declining

B. When they are increasing

C. At their lowest points

D. When marginal revenue is zero

2707. When a national has very little GDP per person ?
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A. an increase in capital will likely have little impact on output

B. it has the potential to grow relatively quickly due to the catch-up-effect

C. none of these answers

D. It must be a small nation.

E. it is doomed to being relatively poor forever

2708. The long-run market supply curve ?
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A. is always more elastic than the short-run market supply curve.

B. is always perfectly elastic

C. is always less elastic than the short-run market supply curve

D. has the same elasticity as the short run market supply curve

2709. A change in the relative prices of which of the following pair of goods would likely cause the smallest substitution effect ?
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A. petrol from BP and petrol from shell

B. coke and Pepsi

C. kit-Kat chocolate snacks and Twix chocolate snacks

D. right shoes and left shoes
2710. The change in consumption that results when a price change moves the consumer along a given indifference curve is known as the ?
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A. income effect

B. inferior effect

C. complementary effect

D. normal effect

E. substitution effect
2711. The policy that has been the most successful in increasing agricultural output in developing countries is ?
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A. import substitution

B. land reform

C. mechanization

D. produce marketing boards

2712. Dual economies are countries ?
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A. with a modern manufacturing sector as well as traditional agriculture sector

B. with foreign owned and domestically owned capital

C. that specialize in labor intensive products more than capital intensive products

D. with double capital and labor/

2713. In the long-run some firms will exit the market if the price of the good offered for sale is less than ?
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A. average total cost

B. marginal revenue

C. marginal cost

D. average revenue

2714. Based on the 2010 population survey four of the five most populous countries include ?
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A. Russia, Pakistan Bangladesh and Nigeria

B. Russia, China, India, and South Africa

C. China, India, Indonesia, and Brazil

D. China, Russia, Mexico, and Indonesia

2715. Which of the following best describes the rate of growth in productivity in the United states over the last fifty years ?
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A. Productivity has been growing more slowly every decade since world War II

B. Productivity growth has been steady over the last 50 years

C. Productivity grew slowly from the 1950s through the 1970s and then began to accelerate probably due to advances in computer technology

D. Productivity grew quickly in the 1950s and 1960s more slowly from the early 1970s through 1995 and then quickly again
2716. Which of the following describes an increase in technological knowledge ?
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A. A farmer sends his child to agricultural college and the child returns to work on the farm

B. A farmer hires another day laborer

C. A farmer discovers that it is better to plant in the spring rather than in the fall

D. A farmer buys another tractor

2717. In marketing USP stands for ?
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A. Underlying Sales Proposition

B. Unique Selling Proposition

C. Unit Sales Point

D. Under Sales Procedure

2718. Goals are achieved through ____ such a monetary fiscal, exchange rate tariff tax subsidy, business incentive foreign investment and foreign aid?
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A. central planning

B. indicative plan

C. instrument variables

D. central bank policies

2719. Asian tigers or newly industrializing countries (NICs) of East and Southeast Asia include the following except ?
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A. China

B. Singapore

C. South Korea

D. Taiwan

2720. Which of the following statements is true ?
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A. Countries all have the same growth rate and level of output because any country can obtain the same factors of production

B. Countries have great variance in both the level and growth rate of GDP/person thus poor countries can become relatively rich over time

C. Countries may have different level of GDP/person but they all grow at the same reate

D. Countries may have a different growth rate but they all have the same level of GDP/person

2721. The informal sector includes ?
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A. activities with little capital skill and entry barriers

B. #NAME?

C. rtisans, cottage industrialists, petty traders, teashop proprietors

D. garbage pickers jitney unauthorized taxis repair persons

2722. Decrease returns to scale means that _____ as ______?
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A. Short run marginal cost rises, output rises

B. long run marginal cost rises, output rises

C. long run average cost rises, output rises

D. Short run average cost rises, output rises

2723. Which of the following is not capita good ?
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A. inventories

B. consumers goods

C. plant and equipment

D. buildings

2724. Suppose we measure the quantity of good X on the horizontal axis and the quantity of good Y on the vertical axis If indifference curves are bowed inward, as we move from having an abundance of good X to having an abundance of good Y, the marginal rate of substitution of good Y for good X (the slope of the indifference curve) ?
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A. rises

B. stays the same

C. could rise or fall depending on the relative prices of the two goods.

D. falls

2725. A countrys capital stock is the ?
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A. approximated investment minus actual investment

B. difference between GDP and capital consumption

C. sum of previous gross investment minus depreciation

D. inflow of investment from abroad

2726. When economists talk about developing countries experiencing flight of capital they mean?
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A. people investing money abroad rather than in their own country

B. money lent to the country being immediately invested abroad

C. money moving around financial institutions rather than being invested in production

D. People investing their money in urban business rather than agriculture

2727. Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumers income is 100 A pair of socks is ?
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A. an inferior effect

B. a Geffen good

C. none of these answers

D. a normal good
2728. Which of the following market would most closely satisfy the requirements for a competitive market ?
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A. cola

B. All of these answers represent competitive markets

C. cable television

D. milk

E. electricity

2729. Which of the following is NOT one of the problems facing most developing nations ?
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A. Rapid population growth

B. Food shortages

C. Foreign debt

D. Labor shortages
2730. For a given level of technology, we should expect an increase in productivity within a nation when there is an increase in each of the following except ?
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A. human capital/worker

B. natural resources/worker

C. labor

D. physical capital/worker

2731. Polish economist Oskar Langes model of decentralized ______ combined the advantages of market allocation with more uniform income distribution by dividing the returns from social ownership of nonhuman productive resources among the whole population ?
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A. monopoly

B. market socialism

C. capitalism

D. mixed economy

2732. Which of the following would cause a demand curve for a good to be price inelastic ?
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A. There are a great number of substitutes for the good

B. The good is a necessity

C. The good is an inferior good

D. The good is luxury

2733. Which of the following is not a characteristic of a competitive market ?
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A. The are many buyers and sellers in the market

B. Firms generate small but positive economic profits in the long run

C. The goods offered for sale are largely the same.

D. All of these answers are characteristic of a competitive market

E. Firms can freely enter or exit the market

2734. Canada France, Germany, Italy, Japan, The United Kingdom and United States are ?
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A. countries with highest productivity growth in the world since 1960

B. countries with the lowest information technology equipment and software index prices

C. countries with decreasing TFP growth since 1990s

D. G-7 countries
2735. In perfect competition ?
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A. the fixed cost equals the variable costs

B. the price equals the average variable cost

C. the price equals the total cost

D. The price equals the marginal revenue
2736. Which of the following expenditures to enhance productivity is most likely to emit a positive externality ?
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A. OGDC leases a new oil field

B. Naila pays her university tuition fees.

C. Megabank buys a new computer

D. Indus Motors buys a new drill press

2737. Peasants are ?
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A. rural politicians

B. rural cultivators

C. rural industrialist

D. rural, religious group

2738. If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost the firm could increase profit if it ?
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A. decreased production

B. maintained production at the current level

C. temporarily shut down.

D. increased production
2739. If a firm takes over a competitor then, according to porters 5 forces model ?
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A. Substitute threat is higher

B. Supplier power is higher

C. Buyer power is higher

D. Rivalry is lower

2740. On what did the Russian Soviet development model of growth not depend ?
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A. markets for allocating resources

B. state assisted entrepreneurs

C. diverting savings from agriculture to industry

D. state monopolized trading

2741. Industrialization?
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A. id inversely related to development

B. is positively related to development

C. causes development

D. inhibits development

2742. Branko Horvats historical review of the last two and one-half century indicates that in large part market or decentralized socialism ?
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A. is the only way to eradicate poverty?

B. works well in Utopia

C. is widely used in sub Saharan Africa

D. has failed
2743. In the 1980s economists studying the source of growth observed no positive relationship between information and communications technology (ICT) investments and productivity This is known as ?
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A. Stieglitz discrepancies

B. technological followership

C. productivity paradox

D. Solow residual

2744. A competitive firm produces a level of output at which ?
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A. Price is greater than marginal cost

B. price equals marginal cost

C. None of the above

D. price is less than marginal cost

2745. Simon S.Kuznets argues that the major stock of an economically advanced country is not its physical capital but ?
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A. land

B. natural resources

C. body of knowledge

D. quantity of labor

2746. Structuralist economists who study developing countries focus their attention on ?
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A. The impact of international trade structures on developing countries

B. specific barriers to development and how to overcome them

C. changes in industrial structure over time

D. the caste of class structure and discrimination in the labor market

2747. Which of the following is not a public policy to promote the private sector ?
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A. Increasing market monopolies and oligopolies to help producers

B. Providing adequate infrastructure for public and private agencies

C. Investigating development potential through scientific and market research and natural resources surveys

D. Creating markets, including commodity markets, security exchanges, banks credit facilities and insurance companies

2748. The 1993 World Bank study entitled The East Asian Miracle (1993) identifies eight high performing Asian economies Which of the following is not one of them ?
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A. Vietnam

B. Japan

C. Thailand

D. Four tigers

2749. Annual GNP growth of 6% poverty reduced by 1% point of the population Balance of payments deficit not in excess of $200 million For a planner, the above are ?
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A. recurrent expenditures

B. bound by soft budget

C. target variables

D. achieved only through socialism

2750. The following statements are true about informal sector except ?
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A. Production is capital intensive

B. Uses family workers

C. May be enterprises with less than 10 workers

D. Uses no mechanical power