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
2801. In monopolistic competition firms profit maximize where ?
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A. Marginal revenue = Marginal cost

B. Marginal revenue = Total cost

C. Marginal revenue = Average revenue

D. Marginal revenue = Average cost
2802. In perfect competition ?
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A. There are many buyers and sellers

B. Firms are price makers

C. There are many buyers but few sellers

D. A few firms dominate the industry

2803. Which of the following statements regarding the market for foreign currency exchange is true ?
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A. An increase in Pakistans net capital outflow increase the demand of rupees and the rupees appreciate

B. An increase in Pakistans net capital outflow increase the supply of rupees and the rupees appreciate

C. An increase in Pakistans net capital outflow increase the demand of rupees and the rupees depreciate

D. An increase in Pakistans net capital outflow increase the supply of rupees and the rupees depreciate
2804. in general a flatter demand curve is more likely to be ?
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A. unit price elastic

B. price inelastic

C. none of these answers

D. price elastic

2805. If a competitive firm doubles its output its total revenue ?
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A. doubles.

B. cannot be determined because the price of the good may rise or fall

C. less than doubles.

D. more than double

2806. The competitive firm maximize profit when it produces output up to the point where ?
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A. marginal cost equals total revenue

B. marginal revenue equals average revenue

C. price equals average variable cost

D. marginal cost equals marginal revenue
2807. An increasing in Europes taste for UK produced Hondas would cause the pound to ?
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A. depreciate and would decrease UK net exports

B. depreciate and would increase UK net exports

C. appreciate and would increase UK net exports

D. appreciate, but the total value of UK net export stays the same
2808. Which of the following statement is NOT true about OECD aid ?
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A. In 2001, only Denmark Norway, Sweden, the Netherlands, and Luxembourg exceeded the aid target for LDCs

B. In the early 1990s the OECD contributed 98 percent of all aid

C. The OECD aid increased from $6.9 billion in 1970 to $8.9 billion in 2001

D. During the 1980s OECD countries contributed four fifths of the worlds bilateral official development assistance to LDCs

2809. Which of the following assumptions underlying input-output analysis raises about its validity ?
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A. The technical coefficients are fixed which means so substitution between inputs occurs

B. #NAME?

C. There is no technical change

D. There are no externalities so that the total effect of carrying out several activities is the sum of the separate effects

2810. If there is excess capacity in a production facility it is likely that the firms supply curve is ?
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A. price elastic

B. price inelastic

C. none of these

D. unit price elastic

2811. The firms long run output decision will be where ?
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A. marginal revenue equals output

B. marginal revenue equals long run marginal cost

C. long run average cost is lowest

D. marginal cost equals output

2812. Aid or official development assistance (ODA) includes ?
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A. technical cooperation

B. developments grants

C. loans with at least 25 percent grant element

D. #NAME?

2813. Experiences over the last three decades has suggested that in order for economic development to occur, it is necessary for an economy to ?
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A. stress agricultural development over industrial development

B. promote industrial development over agriculture

C. use a balanced strategy that promotes both agricultural and industrial development

D. stress the importation of agricultural products and the export of manufactured goods

2814. Which of the following is not TRUE about rural urban migration ?
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A. From 1975 to 2000 the number of cities in LDC with populations over 1 million increased from 20 to 50

B. The urban share of total LDC population grew from 27 percent in 1975 and 35 percent in 1992 to 40 percent in 2003

C. Migration to the cities is a larger contributor than natural population growth to urban labor growth is sub Saharan Africa

D. In Latin America natural population increase is the major source of urban growth
2815. Which of the following is not True ?
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A. In 2001 internet users per 1000 people in middle income countries were greater than high income countries

B. In 1990 the world had 98 mainline phones and 2 mobile phones per 1,000 people: in 2001 169 mainline and 153 mobiles per 1000

C. In 2001 the World information technology expenditures were about 1/20 of 1% of world gross investment

D. Mobile phones do not require the massive infrastructure investment that mainline telephone require

2816. Which of the following statements regarding the market for foreign currency exchange is true ?
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A. An increase in Pakistans net exports increase the demand for rupees and the rupees appreciates

B. An increase in Pakistans net exports decreases the supply of rupees and the rupees depreciates

C. An increase in Pakistans net exports decrease the demand for rupees and the rupees appreciates

D. An increase in Pakistans net exports increases the Supply of rupees and the rupees depreciates

2817. If the EU imposes a quota on the importing of clothing produced in China, so reducing UK imports of clothing Which of the following is true regarding the market for foreign currency exchange ?
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A. The Supply of pounds decreases, and the pound appreciates

B. The Supply of pounds increases, and the pound depreciates

C. The demand for Pounds increases and the pound appreciates

D. The demand for pounds decreases and the pound depreciates

2818. I = S + F The equation above states that a country can increase its new capital formation (or investment) through is ?
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A. savings from abroad and financial outflow

B. own domestic savings and by inflows of capital from abroad

C. stock market and fiscal policy

D. savings and financial liberalization

2819. In 2000, the Economist estimated that only _________ of some 360 million internet users were in Africa ?
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A. 60 million

B. 10 million

C. million

D. 3 million
2820. The theoretical basis for zero marginal productivity of labor was the concept of ?
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A. labor force literacy

B. limited technical sustainability of factors

C. substitution of leisure and work among labor

D. marginal rate of substitution

2821. If a small percentage increase in the price of a good greatly reduces the quantity demanded for that good, the demand for that good is ?
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A. income inelastic

B. price inelastic

C. unit price elastic

D. price elastic
2822. Increases in real GNP per capita occur when ?
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A. government programs direct resources away from investment goods to consumer goods.

B. the rate of growth of real GNP is greater than the rate of growth of population

C. tariffs and quotas prevent dollars from leaving the country

D. the level of consumption expenditures rises relative to the level of saving

2823. Clientelism ?
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A. #NAME?

B. is also known as patrimonialism

C. is the dominant pattern in many LDCs

D. commands equals wealth, status or influence, based on unconditional loyalties and involving mutual benefits

2824. Keiretsu refers to ?
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A. financial cliques

B. State-assisted entrepreneurs

C. horizontal manufacturing groups consisting of a core company and its partners

D. groups of affiliated companies loosely organized around a large bank
2825. The openly unemployed in LDCs are usually from all of the following except ?
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A. the educated

B. persons 15 to 24 years old

C. residents of urban areas

D. from the poorest 1/5 of the population
2826. If leisure is a normal good, an increase in the wage ?
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A. will increase the amount of labor supplied if the substitution effect outweighs the income effect

B. will always decrease the amount of labor supplied

C. will always increase the quantity of labor supplied

D. will increase the amount of labor supplied if the income effect outweighs the substitution effect

2827. Which one of the following countries is not a high-income country ?
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A. Canada

B. United Kingdom

C. Mexico

D. Germany

2828. Refer to Exhibit 4. Suppose that the consumer must choose between buying socks and belts Also suppose that the consumers income is 100 If the price of a belt is 10 and the price of a pair of socks is 5, the consumer will choose to buy the commodity bundle represented b point ?
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A. the optimal point cannot be determined from this graph

B. Z

C. X

D. Y

2829. If the EU imposes a quota on the importing of clothing produced in China, so reducing UK imports of clothing, which of the following is true regarding UK net exports ?
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A. None of these answers

B. Net exports will rise

C. Net exports will fall

D. Net exports will remain unchanged
2830. An export subsidy should have the opposite effect of ?
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A. An increase in Private saving

B. Capital flight

C. A tariff

D. A government budget deficit

2831. If an input necessary for production is in limited supply so that an expansion of the industry raises costs for all existing firms in the market, then the long-run market supply curve for a good could be ?
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A. perfectly elastic

B. perfectly inelastic

C. downward sloping

D. upward sloping
2832. In a competitive economy, a worker earns an income equivalent to ?
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A. The amount of brain drain

B. Marginal Product

C. The substitutability of labor to capital

D. Marginal utility

2833. A case when internal economies of scale bring about a continuously falling average cost curve that makes having more than one firm in an industry inefficient is illustrative of ?
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A. an individual firm facing a horizontal (perfectly elastic) demand curve in LDCs

B. a natural monopoly

C. The existence of oligopoly

D. an LDCs limit of one firm to an industry

2834. An increase in the Pakistans government budget deficit ?
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A. decreases Pakistans net exports and increase Pakistans net capital outflow

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

C. Increase Pakistans net exports and Pakistans net capital outflow the same amount

D. decreases Pakistans net exports and Pakistans net Capital outflow the Pakistans same amount
2835. Which of the following is not a requirement for economic development ?
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A. an adequate capital bases

B. a temperate climate

C. technological advance

D. natural resources

2836. If in Pakistan real GDP/person in 2004 is Rs18,073 and real GDP/person is 2005 is Rs18,635 What is the growth rate of real output per person over this period ?
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A. 18.0 percent

B. 3.1 percent

C. 3.0 percent

D. 18.6 percent

2837. For perfect competition to work there must be ?
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A. a standard product

B. perfect information

C. many buyers and sellers

D. free entry and exit

E. all of the above
2838. Deepak Lal argues that development economics is dominated by _______ approach that favors government intervention into LDC prices?
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A. Commanding heights

B. dirigiste

C. soft budget

D. Keynesian

2839. Worker-managed socialism helped contribute to ________ s rapid economic growth from 1959 to 1979?
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A. Vietnam

B. Yugoslavia

C. Chile

D. Japan

2840. The main reason why land reform increase agricultural output is that is ?
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A. enables farmers to escape the problem of diminishing return

B. encourages mechanization

C. makes farmers owners of the land instead of tenants and owners farmers are more productive than tenant farmers

D. allows the farmers to set the prices for their agricultural products

2841. Economic rent ?
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A. is productive activity to obtain private benefit from public action and resources

B. are the payments above the minimum essential to attract the resources to the market?

C. does not include monopoly profits

D. is the wage used to pay unskilled workers?

2842. The slope at any point on an indifference curve is known as ?
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A. the marginal rate of substitution

B. the trade-off rates

C. the marginal rate of trade-off.

D. the marginal rate of indifference

2843. The price elasticity of demand is defined as ?
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A. none of these answers

B. the percentage change in the quantity demanded divided by the percentage change in income.

C. the percentage change in income divided by the percentage change in the quantity demanded

D. the percentage change in the quantity demanded of a good divided by the percentage change in the price of that good
2844. If demand is linear (a straight line) then price elasticity of demand is ?
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A. inelastic throughout

B. elastic in the upper portion and inelastic in the lower portion

C. constant along the demand curve

D. inelastic in the upper portion and elastic in the lower portion

2845. Low agricultural productivity in developing countries is mainly caused by ?
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A. a lack of effective demand for food products

B. an over-investment in farm equipment

C. migration from rural areas to urban areas

D. shortages of inputs including land
2846. in general a flatter demand curve is more likely to be ?
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A. price elastic

B. unit price elastic

C. none of these answers

D. price inelastic

2847. When average cost is falling marginal cost is ________ and when average cost is rising marginal cost is?
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A. greater than average cost, less than average cost

B. less than average cost, greater than average cost

C. less than average cost, less than average cost

D. greater than average cost, greater than average cost

2848. he efficiency wage is the ?
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A. wage costs per unit of output

B. wage rate that prevails in LDCs

C. Wage rate divided by the productivity of labor

D. marginal product of labor divided by wage

2849. Pakistan is the _____largest Chickpea Producer country in the world ?
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A. Fifth

B. Sixth

C. Eight

D. Second
2850. Which province of Pakistan is the largest sugarcane producing province ?
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A. Sindh

B. Baluchistan

C. K.P.K

D. Punjab