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
3001. How much of the total export earning is through agriculture ?
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A. 75%

B. 45%

C. 65%

D. 55%

3002. Columbias Jagdish Bhagwati criticizes United States administrations inability to distinguish between benefits of free trade ?
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A. and the dangers of a trade deficit

B. and the dangers of free capital movements for LDCs with poorly developed financial institutions

C. and the external openness of income growth among the poorest 40 percent of LDCs

D. and MNC domination and its effects on income distribution

3003. The theory of the second best suggests that in the absence of perfect competition a privatized industry should charge a price of ?
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A. p = Z

B. P = MC Z

C. p = MC

D. P = MC + Z
3004. Public limited companies may not maximize their profits because ?
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A. they are afraid of encouraging takeovers.

B. shareholders have little control over managers.

C. shareholders want higher dividends.

D. both the first and third option.

3005. Nicole wants to avoid buying a car that is a lemon. She takes a car she would like to buy to her mechanic before she purchases it. This is known as ?
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A. signaling

B. screening

C. moral hazard

D. adverse selection

3006. In the UK, electricity industry parts are a ____ and other parts are ___ ?
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A. nationalized; privatized

B. natural monopoly; potentially competitive

C. cartel; a sellers market

D. monopolistic competition duopoly

3007. Which one is the dominant source of foreign exchange earning ?
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A. Manufacturing

B. Textile

C. Agriculture

D. Foreign remittance

3008. The period of Rabi Season is _____ ?
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A. October-June

B. All of them

C. May-Aug

D. October-May
3009. Firms that engage in satisficing behavior are likely to be ?
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A. unlike other firms in their industry

B. growth maximisers.

C. leading firms in their industry

D. Like other firms in their industry.
3010. Cash crops cover nearly _______ of the cropped areas?
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A. 25%

B. 15%

C. 55%

D. 35%

3011. ________ is the most important staple food of Pakistan?
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A. Wheat

B. Sugarcane

C. Rice

D. Cotton

3012. The natural rate of unemployment is generally thought to be the sum of ?
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A. frictional unemployment and structural unemployment

B. cyclical unemployment and structural unemployment

C. frictional unemployment and cyclical unemployment

D. frictional unemployment and seasonal unemployment

3013. Jamils friend dies of a sudden heart attack. Jamil rushes to his doctor for an expensive physical examination. This response demonstrates that ?
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A. People easily change their minds when confronted with new information

B. People give too much weight to a small number of vivid observations

C. People tend to plan ahead and follow through on their plans

D. People enjoy going to the doctor

3014. Trimmu Sindhnai link canal links the Chenab with ?
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A. None of these

B. Ravi

C. Jhelum

D. Chenab

3015. Which one of the following is the largest sector of Pakistans economy ?
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A. Industry

B. Banking

C. Agriculture

D. Manufacturing

3016. Kharif crop includes ?
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A. Cotton and maize

B. All of them

C. Bajra and Jawar

D. Rice & sugarcane

3017. The Upper Swat Canal starts from ?
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A. Jhelum

B. Kabul

C. Malakand

D. Abazai

3018. What Pheromones are environmentally friendly and safe for another useful insects end ?
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A. predators

B. cows

C. pets

D. human being

3019. The annual growth rate of edible oil is ?
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A. 9%

B. 7%

C. 15%

D. 10%
3020. Which is the main staple food of the population and largest grain crop of the country ?
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A. pulses

B. rice

C. wheat

D. None of these

3021. An unspoken agreement between workers and firms that the firm will not cut wages is known as ?
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A. employment at will

B. an explicit contract

C. an implicit or social contract

D. a relative-wage contract

3022. Barro and Lee find that ceteris paribus, IMF lending has ?
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A. an exponentially negative effect on growth ten years

B. negative effect on economic growth during the simultaneous five-year period but has a significantly positive effect on growth in the subsequent five years

C. no effect on economic growth during the simultaneous five-year period but has a significantly negative effect on growth in the subsequent five years

D. a significantly positive effect on growth in the subsequent five years

3023. A merger between a paper producer and a book publisher is an example of?
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A. a horizontal merger

B. a vertical merger

C. a conglomerate merger.

D. a complementary products merger.

3024. Supporters of antimonopoly enforcement argue that the real gain from such enforcement ?
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A. is that if encourages firms to engage in research which leads to new products

B. is that it forces firms to produce efficiently.

C. Is that this policy serves to deter firms from engaging in such practices as collusion, price-fixing and deceptive advertising

D. is the revenue generated from the fines paid by those individuals who are found guilty of antitrust violation?

3025. A merger in which firms at various stages in a production process combine is a ?
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A. vertical merger

B. horizontal merger

C. conglomerate merger.

D. production merger

3026. How much of the total area is cultivated in Pakistan ?
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A. 55%

B. 35%

C. 45%

D. 25%
3027. Nara Canal is located in the Province of _______?
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A. None of these

B. Punjab

C. Sindh

D. Baluchistan

3028. Accounting profit is equal to total revenue minus ?
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A. the sum of implicit and explicit costs.

B. explicit costs.

C. implicit costs

D. variable costs

E. marginal costs

3029. The IMF is an agency charged with providing ?
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A. loans for post-World War II reconstruction

B. bonds denominated in U.S dollars as a loan to LDCs

C. short-term credit for international balance of payments deficits

D. technical assistance to stock market and financial market problems

3030. The U.S real food aid, as well as food reserves dropped from the 1960s to the 1980s partly because ?
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A. proponents of basic-needs attainment opposed food-aid

B. U.S farm interests wanted to reduce surplus grain stocks

C. agricultural production suffered excessively due to weather changes

D. the transportation and storage cost increased tremendously

3031. The Indus Water Treaty was mediated by ?
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A. IMF

B. USA

C. Britain

D. World Bank
3032. A sale maximizing firm will produce where ?
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A. sales revenue is maximized

B. quantity sold is maximized

C. AR minus AC is maximized

D. MC = MR

3033. Hollis Chenery and Alan Strout identity three development stages in which growth proceeds at the highest rate permitted by the most limiting factors These factors are ?
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A. the foreign exchange gap

B. #NAME?

C. the savings gap

D. the skill limit

3034. What growth rate was witnessed in agriculture sector last fiscal year ?
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A. 1.4%

B. 1.90%

C. 2%

D. 2.90%

3035. Jamils car is in need of repair, so John decides to sell it avoid the repair bill. Unaware of the problem, Shahab buys the car. This is an example of ?
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A. hidden actions

B. moral hazard

C. adverse selection

D. adverse selection

3036. Use of Borom and Zink can improve ?
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A. sunflower yield

B. rice yield

C. cotton yield

D. sugar yield

3037. If a production function exhibits diminishing marginal product. its slope ?
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A. is linear (a straight line)

B. becomes flatter as the quantity of the input increase

C. could be any of these answers

D. becomes steeper as the quantity of the input increase

3038. Which province of Pakistan is the largest Jowar producing province ?
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A. Baluchistan

B. K.P.K

C. Sindh

D. Punjab
3039. For Harvards Dani Rodrik Globalization involves ?
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A. changes of a traditional culture of a country to a western culture

B. decreasing autonomy of the nation-state involves

C. giving aid to poor countries to improve their economy politics and social status

D. the increasing international integration of markets for goods services and capital
3040. Pakistan is the ____largest milk producer country in the world?
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A. ht

B. Fifth

C. Sixth

D. Fourth

3041. Sales staff are keen to sell extended warranties because ?
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A. extended warranties offer value for money.

B. they are paid commission on each extended warranty they sell.

C. the cost of repair will usually exceed the cost of the warranty

D. They are concerned about customer satisfaction.

3042. Which of the following statements about microeconomics and macroeconomics is not true ?
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A. Microeconomics and macroeconomics cannot be entirely separated

B. Macroeconomics is concerned with economy-wide phenomena

C. The study of very large industries is a topic within macroeconomics

D. Microeconomics is a building block for macroeconomics

3043. Which province of Pakistan is the largest bajra producing province ?
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A. Baluchistan

B. Punjab

C. Sindh

D. K.P.K

3044. Pakistan is the _____largest tobacco Producer country in the world?
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A. Sixth

B. Seventh

C. Eight

D. Fifth

3045. Antimonopoly laws are based on the proposition that ?
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A. public ownership is the best way to achieve efficiency

B. competition is the best way to achieve efficiency.

C. regulation is the best way to achieve efficiency.

D. increasing market power is the best way to achieve efficiency.

3046. The total forest area of Pakistan is estimated at ?
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A. 6.20 million hectares

B. 5.20 million hectares

C. 4.20 million hectares

D. 3.20 million hectares

3047. The domestic requirement of oil seed has almost doubled during the last?
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A. 9/10 years

B. 6/7 years

C. 3/4 years

D. 7/8 years
3048. What is the total length of Seven canals built under Indus Water Treaty ?
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A. 650 KM

B. 621 KM

C. 615 KM

D. 910 KM

3049. Positive statements are ?
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A. statements of description that can be tested

B. Macroeconomic

C. Statements of prescription that involve value judgments.

D. Microeconomics

3050. Pakistan is the ___________ largest Cotton Producer country in the world?
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A. Fourth

B. Fifth

C. Eight

D. Sixth