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
2751. Which two countries have enjoyed a real per capita growth rate of more than 7% yearly since the 1960s ?
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A. Canada and the United States

B. Sierra Leone and Nigeria

C. Taiwan and South Korea

D. Ghana and Mexico

2752. A state planning ideology arose in LDCs as a reaction to nationalist perceptions of ?
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A. western countries, nation-state ideology

B. Keeping balanced budget, a price target

C. minimizing public spending in the rural areas

D. slow economic growth under colonial capitalism
2753. According to Oskar Langes model socialist enterprises should produce where ?
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A. marginal revenue equals average cost

B. The monopoly profit maximization rule applies

C. total revenue equals total cost

D. Product price equals marginal cost
2754. A medium-term plan can be a(n) ________ revised at the end of each year?
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A. perspective plan

B. seasonal expenditure

C. rolling plan

D. instrument variable

2755. What is gross domestic product (GDP) ?
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A. the number of dollars earned in industry

B. goods received from the nations residents

C. income earned within a countrys boundaries

D. income earned through foreign exchange

2756. The developed nations have only about 15% of the worlds population, but they are estimated to consume _______ of the worlds output ?
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A. 80%

B. 50%

C. 25%

D. 65%

2757. If consumption when young and when old are both normal goods, an increase in the interest rate ?
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A. will always increase the quantity of saving

B. will increase the quantity of saving if the substitution effect outweighs the income effect

C. will always decrease the quantity of saving

D. will increase the quantity of saving if the income effect outweighs the substitution effect

2758. A decrease in supply (shift to the left) will increase total revenue in that market if ?
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A. supply is price elastic

B. demand is price inelastic

C. supply is price inelastic

D. demand is price elastic

2759. The emigration of highly-skilled people from the developing countries is known as ?
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A. human capital deterioration

B. labor degradation

C. productivity

D. The brain drain
2760. Which of the following is not TRUE about unemployed in LDCs ?
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A. The unemployed are relatively well educated

B. The unemployment rate for youths is twice that of people over 24

C. Unemployment in rural areas is twice that of urban areas

D. World-wide there are fewer unemployed females than males, but the rate is higher for women
2761. An example of a trade policy is ?
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A. All are examples of trade policy

B. capital flight because it increases a countrys net exports

C. A tariff on sugar

D. an increase in the government budget deficit because it reduces a countrys net exports

2762. The market efficiently allocates scarce resource among alternative ends such that ?
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A. the market distributes income among rich individuals

B. Production resources hire out to maximize income)

C. #NAME?

D. consumers receive goods for which they are willing to pay

2763. The Phrase twin deficits refers to ?
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A. The fact that if a country has a trade deficit, its trading partners must also have trade deficits

B. A countrys trade deficit and its government budget deficit

C. a countrys trade deficit and its net capital outflow deficit

D. the equality of a countrys saving deficit and its investment deficit

2764. The bourgeoisie refers to ?
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A. the monarchy

B. the aristocrats of wealthy nations

C. the central planners of the Soviet Union

D. the capitalist and middle class
2765. Most mixed or capitalist developing countries are limited to an indicative plan, which indicates expectations, aspirations, and intentions ?
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A. of implementation through foreign aid

B. of the central bank

C. but falls short of authorization

D. with immediate implementation

2766. Which of the following is not one of the four Ps in marketing ?
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A. Product

B. Place

C. Presence

D. Price

2767. Once a country is wealthy ?
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A. capital becomes more productive due to the catch-up- effect

B. it may be harder for it to grow quickly because of the diminishing returns to capital

C. it no longer needs any human capital

D. none of these answers

2768. A grocery store should close at night if the ?
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A. variable costs of staying open are less than the total revenue due to staying open.

B. variable costs of staying open are greater than the total revenue due to staying open

C. total costs of staying open are less than the total revenue due to staying open

D. total costs of staying open are greater than the total revenue due to staying open

2769. The Keynesian remedy for unemployment is to ?
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A. reduce tax rates or lower interest rates

B. decrease aggregate demand

C. decrease private consumption and investment

D. decrease government spending

2770. If a production function exhibits constant returns to scale ?
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A. doubling all of the inputs less than doubles output due to diminishing returns

B. doubling all of the inputs more than doubles output due to the catch-up effect

C. doubling all of the inputs has absolutely no impact on output because output is constant

D. doubling all of the inputs doubles output
2771. Many East Asian countries are growing very quickly because ?
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A. They have enormous natural resources.

B. They save and invest an unusually high percentage of their GDP

C. They are imperialists and have collected wealth from previous victories in war

D. They have always been wealthy and will continue to be wealthy, which is known as the snowball effect

2772. Which of the following statement is true about low-income countries ?
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A. the average agriculture family produces surplus large enough only to supply small non-agriculture population

B. less than 10% of the labor force is in agriculture

C. One-third of the labor force produce food

D. share of labor force is about 30%

2773. ASEAN refers to the ?
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A. Alliance of South Eastern African Nations

B. Association of South East Asian Nations

C. Association of South East Argo Nations

D. Alliance of South East Asian Neighbors

2774. The demand for which of the following is likely to be the most price inelastic ?
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A. taxi rides

B. bus tickets

C. transportation

D. airline tickets

2775. A countrys export commodity concentration ratio is the ?
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A. proportion of the primary export commodity in total exports

B. average annual investment made in production of exported commodities

C. ratio of four leading commodities to total merchandise exports

D. total annual investment made in production of exported commodities

2776. If supply is price inelastic the value of the price elasticity of supply must be ?
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A. less than 1

B. none of these

C. infinite

D. Zero

E. greater than 1

2777. If an increase in the price of a good has no impact on the total revenue in that market demand must be ?
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A. unit price elastic

B. all of these answers

C. price inelastic

D. price elastic

2778. Which of the following government policies is least likely to increase likely to increase growth in Africa ?
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A. increase expenditure on public education

B. eliminate civil war

C. All of these answers would increase growth

D. increase restrictions on the importing of American tractors and electronics
2779. Takatoshi Ito (1992) contends that parliamentary governments manipulate the timing of _____ while presidential governments manipulate the timing of _____?
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A. economic policies; political policies

B. elections; economics policies

C. tax collection, tax implementation

D. monetary policy, fiscal policy

2780. Vaccinating people for measles, rubella, polio and cholera to substantially increase net social benefits by improving the health and productivity of the population is an example of ?
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A. economies of scale

B. net present value

C. external economies

D. negative externality

2781. For a competitive firm, marginal revenue is ?
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A. equal to the quantity of the good sold

B. average revenue divided by the quantity sold

C. total revenue divided by the quantity sold

D. equal to the price of the good sold
2782. In the short run firms in perfect competition will still produce provided ?
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A. The price covers average fixed cost

B. The price covers variable cost

C. The price covers fixed costs

D. The price covers average variable cost
2783. Of the 57 million people dying worldwide in 2002, _____ were from stroke and heart disease and ________ from cancer disproportionately from DCs?
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A. 0.5 million, 5 million

B. 7 million, 0.7 million

C. 3 million, 1 million

D. 17 million, 7 million
2784. In perfect competition ?
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A. Products are heavily differentiated

B. Consumer have limited information

C. The products firm offer is very similar

D. A few firms dominate the market

2785. 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

2786. The 1993 World Bank study entitled The East Asian Miracle 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. The four tigers

2787. One of the benefits of putting resources into agricultural projects is that ?
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A. agricultural projects usually have low import requirements

B. export prices for agricultural products are more stable than those for industrial products

C. agricultural investment will prevent the flight of capital abroad

D. Successful agricultural projects produce surplus food to support urban development

2788. The idea that suggests that poverty is self-perpetuating because poor nations are unable to save and invest enough to accumulate the capital stock that would help them grow is ?
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A. the dependency theory

B. the under-consumptionist hypothesis

C. the vicious circle of poverty hypothesis

D. neo-colonialism

2789. Which of the following statements regarding the impact of population growth on productivity is true ?
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A. All of these answers

B. There is no evidence, yet that rapid population growth stretches natural resources to the point that it limits growth in productivity

C. Rapid population growth may promote technological progress increasing productivity.

D. Rapid population growth may dilute the capital stock lowering productivity

2790. A production is technique is technically efficient if ?
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A. Costs are minimized

B. inputs are minimized

C. there is no way to make a given output using less of one input and no more of the other inputs

D. output is maximized

2791. Which of the following is True about HIV/AIDS ?
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A. Since 1981 120 million people have died of AIDS

B. Women comprised 58 percent of HIV-positive adults in the Sub-Sahara

C. AIDs infection rates in Africa are highest among urban high

D. - in 2001 40 million people with HIV/AIDS lived in sub-Saharan Africa

2792. Which of the following is Not True about education in LDCs ?
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A. Public expenditure per student for higher education is about ten times as high as for primary education

B. Boys are sent to schools far more often than girls

C. Economists unanimously agree that LDCs should put greater priority on primary education

D. The expansion of primary education redistributes benefits from the rich to the poor

2793. If a long run average cost curve is falling form left to right this is an example of ?
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A. the minimum efficient scale

B. increasing returns to scale

C. constant returns to scale

D. decreasing returns to scale

2794. A dual economy is distinguished from other economies by having ?
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A. state owner ship of the means of production

B. a traditional agricultural sector and a modern industrial sector

C. an industrial sector and a manufacturing sector

D. an industrial sector that concentrates on manufacturing and construction

2795. Japans programs ?
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A. are biased toward Asia

B. are understaffed politically muddled and administratively complex

C. focus on loans and the grant element of aid is low

D. #NAME?

2796. In perfect competition ?
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A. Short run abnormal profits are competed away by the government

B. Short run abnormal profits are competed away by firms entering the industry

C. Short run abnormal profits are completed away by firms leaving the industry

D. Short run abnormal profits are competed away by greater advertising

2797. An annual summary of countrys international economic and financial transactions is ?
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A. the capital accounts

B. the international balance of payments statements

C. the long-term current account

D. the trade accounts

2798. In the short run, the competitive firms supply curve is the portion of the marginal cost curve that lies above the average variable cost curve?
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A. entire marginal cost curve.

B. Upward-sloping portion of the average total cost curve

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

D. portion of the marginal cost curve that lies above the average total cost curve.

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

2799. In the long run, expanding educational and training facilities, transportation and communication and other infrastructure in LDCs should increase ?
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A. productivity paradox

B. absorptive capacity

C. uncertainly

D. the residual

2800. Export primary commodity concentration ratios are ?
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A. export earnings as a ratio of population

B. food, raw materials minerals and organic oils and fat as a percentage of total merchandise exports

C. total merchandise export divided by Gross National Income

D. commodity exports as a percentage of GDP per capita of exporting country divided by importing country