economics MCQs – Page 59

Practise multiple-choice questions from economics for competitive examinations and subject revision. Review each marked answer and report any item that may be outdated or unclear.

economics Mcqs

1. the national economy 2. profit maximizing under perfect competition and monopoly 3. application of economics 4. the aggregate demand aggregate supply model 5. surplus 6. money interest rates and output 7. average and total cost 8. stabilization adjustment reform and privatization 9. risks and diversification efficient market hypothesis 10. the phillips curve 11. supply and demand 12. capital formation investment choice information technology and technical progress 13. aggregate supply unemployment and inflation 14. elasticity 15. comparative gdp 16. roots of modern macroeconomics 17. production factors 18. poverty malnutrition and income inequality 19. trade regulations and industrial policies 20. monetary union 21. exchange rate systems and currency crises 22. economic development in historical perspective 23. exchange rate determination 24. monopoly competition 25. the balance of payments 26. inflation productivity 27. macroeconomic issues and analysis 28. employment migration and urbanization 29. macroeconomic policy tools 30. supply side policies 31. exchange rate adjustments and the balance of 32. miscellaneous 33. taxation 34. trade policies for the developing nations 35. markets efficiency and the public interest 36. the external debt and financial crises 37. budget deficits and the trade balance 38. alternative theories of the firm 39. public goods 40. the meaning and measurement of economic development 41. characteristics and institutions of developing countries 42. agriculture irrigation system of pakistan 43. education health and human capital 44. economic problems of developing countries 45. theories of economic development 46. basic of economics 47. consumer theory vs real consumers 48. applied microeconomics 49. long term economic growth 50. externality internality 51. fiscal and monetary policy 52. prices wages taxes 53. balance of payments aid and foreign investment 54. international factor movements and multinational corporations 55. entrepreneurship organization and innovation 56. the international economy and globalization 57. population and development 58. non tariff trade barriers 59. foundations of modern trade theory 60. global economic development 61. market 62. rural poverty and agricultural transformation 63. regional trading arrangements 64. foreign exchange 65. introduction to economics 66. world economy miscellaneous 67. sources of comparative advantage 68. natural resources and the environment toward sustainable development 69. monopoly 70. asymmetric information 71. income inequality 72. labour market 73. tariffs 74. development planning and policy making the state and the market 75. oligopoly 76. industrial development 77. costs supply and perfect competition 78. human capital 79. monetary fiscal and incomes policy and inflation 80. stocks

1161. Which of the following statements is False ?
0

A. For a market to be contestable, the product must be produced with a labor-intensive technology

B. In a contestable market, economic profits cannot persist in the long run.

C. participants in a contestable market are continuously faced with competition or the threat of competition because entry is cheap

D. In a contestable market forces will guarantee that the firms produce efficiently or be driven out of business

1162. According to classical models, the level of employment is determined primarily by ?
0

A. the level of aggregate demand for goods and services.

B. the quantity of money

C. interest rates

D. prices and wages

1163. Economics in India Pakistan the Philippines and Mexico argue the foodgrain growth would not have kept up with population growth in the last four decades without ?
0

A. improved packages of high-yielding seed varieties

B. fertilizers, pesticides and irrigation

C. #NAME?

D. better extension service

1164. In free trade A will import ?
0

A. 700 units from country C and 600 units from country B

B. 600 units from country C and 400 units from country B

C. 700 units from country C

D. 600 units from country C

1165. Monopolistic competition differs from perfect competition primarily because ?
0

A. in monopolistic competition, firms can differentiate their products

B. in monopolistic competition entry into the industry is blocked

C. in monopolistic competition there are relatively few barriers to entry.

D. in perfect competition firms can differentiate their products

1166. Criticisms against the North American Free Trade Agreement include all of the following except ?
0

A. The environment is not adequately protected by NAFTA

B. wages in the United States will rise relative to Mexican wages

C. None of the above

D. American jobs will be lost to workers in Mexico

1167. In which of the following circumstances would a cartel be most likely to work ?
0

A. The market for copper, where there are very few producers and the product is standardized.

B. The automobile industry, where there are few producers but there is great product differentiation.

C. The coffee market where the product is standardized and there are a large number of coffee growers.

D. The fast-food market where there are a large number of producers but the demand for fast food is inelastic

1168. Diversification of portfolio can ?
0

A. reduce idiosyncratic risk

B. increase the standard deviation of the portfolios return

C. eliminate all risk

D. reduce aggregate risk

1169. Which of the following is not a consequence of growing agricultural commercialization ?
0

A. An increase in rural poverty

B. Women gain in decision making power

C. An increase in the number of landless laborers

D. Workers nutrition is reduced

1170. Which of the following statements is true if the government places a price ceiling on petrol at Rs150 per litre and the equilibrium price is Rs100 per litre ?
0

A. There will be a shortage of petrol

B. A significant increase in the supply for petrol could cause the price ceiling to become a binding constraint.

C. A significant increase in the demand for petrol could cause the price ceiling to become a binding constraint.

D. There will be surplus of petrol

1171. The NAFTA is a ?
0

A. monetary union

B. customs union

C. free trade area

D. common market

1172. In his empirical test of comparative advantage Wassily Leontief found that ?
0

A. None of the above

B. U.S imports are labor intensive relative to U.S exports

C. U.S exports are neither labor nor capital intensive

D. U.S exports are capital intensive relative to U.S imports

1173. An individual firms demand for a factor of production ?
0

A. Slopes downward due to the factors diminishing marginal product

B. is perfectly elastic (horizontal) if the factor market is perfectly competitive

C. Slopes downward because an increase in the production of output reduces the price at which the output can be sold in a competitive market, thereby reducing the value of the marginal producing the value of the marginal product as more of the factor is use

D. slopes upward due to the factors increasing marginal product

1174. The factor endowment theory was pioneered by ?
0

A. Eli Heckscher and Bertil Ohlin

B. Adam smith

C. David Ricardo

D. Wassily Leontief

1175. The government increase government spending to try to reduce unemployment This is an example of ?
0

A. fine tuning

B. automatic stablisers

C. laissez-faire.

D. monetary policy

1176. The amount today that would be needed, at prevailing interest rates, to produce a particular sum in the future is known as ?
0