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
4801. If the keep some money available in case I see a bargain this is an example of ?
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A. precautionary demand for money

B. transactions demand for money

C. asset demand for money

D. token demand for money

4803. An example of an expansionary monetary policy is ?
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A. an increase in the discount rate

B. an increase in the required reserve ratio

C. the Central bank buying government securities in the open market

D. a reduction in the taxes banks pay on their profits.

4806. When marginal costs are below average total costs ?
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A. average fixed cost is rising

B. average total cost is minimized

C. average total cost is raising

D. average total cost is falling
4807. If there are implicit costs of production ?
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A. economic profit will always be zero

B. economic profit and accounting profit will be equal

C. accounting profit will always be zero

D. economic profit will exceed accounting profit

E. accounting profit will exceed economic profit
4808. If a production function exhibits diminishing marginal product the slope of the corresponding total-cost curve ?
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A. becomes steeper as the quantity of output increases

B. is liner (a straight line)

C. could be any of these answers

D. become flatter as the quantity of output increases.

4809. If a production function exhibits diminishing marginal product. its slope ?
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A. becomes flatter as the quantity of the input increase

B. is linear (a straight line)

C. becomes steeper as the quantity of the input increase

D. could be any of these answers

4810. The efficient scale of production is the quantity of output that minimizes ?
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A. average total cost

B. average fixed cost

C. average variable cost

D. marginal cost

4812. In the long run, if a very small factory were to expand its scale of operations it is likely that it would initially experience ?
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A. economies of scale

B. diseconomies of scale

C. an increase in average total costs

D. constant returns to scale

4814. Which of the following is a variable cost in the short run ?
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A. rent on the factory

B. salaries paid to upper management

C. wages paid to factory labor

D. payments on the lease for factory equipment

E. interest payments on borrowed financial capital

4815. If marginal costs equal average total costs ?
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A. average total cost is minimized

B. average total cost is raising

C. average total cost is falling

D. average total cost is maximized

4816. Accounting profit is equal to total revenue minus ?
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A. variable costs

B. marginal costs

C. the sum of implicit and explicit costs.

D. implicit costs

E. explicit costs.
4817. Economic profit is equal to total revenue minus ?
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A. marginal costs

B. implicit costs

C. explicit costs

D. variable costs

4818. Which of the following statements is true ?
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A. All costs are variable in the long run

B. All costs are fixed in the long run

C. All costs are variable in the short run

D. All costs are fixed in the short run.

4820. In 1979-80 China first created _____ for foreigners to set up enterprises hire labor and import duty-free goods for processing and re-exporting ?
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A. Economic Union zones

B. liberalized trade monopoly zones

C. special economic zones

D. Communist free trade areas

4821. The industrial concentration ratio is the proportion of an industrys output ?
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A. as a percentage of production and marketing

B. and labor intensities relative to labor productivity

C. produced in cement, machine tools and steel industries

D. produced by the three largest firms in the industry
4822. Before the 1978 reforms China had a(n) ?
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A. mono bank system

B. urban credit cooperatives

C. housing savings banks

D. agricultural bank only

4823. Countries facing a persistent external deficit can ?
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A. borrow overseas

B. increase trade restrictions and exchange controls

C. Undertake expenditure-reducing policies

D. . undertake expansionary monetary and fiscal policies

4825. A development bank based in London, which loans funds to governments of Eastern Europe and the former Soviet Union is the ?
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A. OECD

B. Transitional Monetary Fund

C. World Bank

D. European Bank for Reconstruction and Development
4826. According to the Brandt report the IMFs insistence on drastic measures in short time periods ?
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A. #NAME?

B. reduces basis-needs attainment

C. contributes to low-income countries recovery quickly

D. may lead to the downfall of governments

4828. Structural economists from the United Nations Economic Commission for Latin America (ECLA) emphasized ?
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A. contractionary monetary and fiscal policies

B. short term-adjustment with a human face

C. long-run institutional and structural economic change

D. currency devaluation

4829. Which of the following is not a quasi-public good ?
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A. national defense

B. libraries

C. fire protection

D. an automobile
4830. When the world Bank or IMF requires improved external balance in the short run the agency may condition its loan on expenditure switching that is ?
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A. switching spending from domestic to foreign sources

B. devaluing local currencies

C. increase government spending

D. increase trade restrictions by imposing quota

4831. State-owned enterprises (SOEs) are also called ?
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A. government oligopolies

B. centralized firms

C. public enterprises

D. market economies

4833. Which of the following statement is NOT true about state owned enterprises (SOEs) ?
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A. SOEs perform better with competition

B. Successful performing SOEs in Japan, Singapore and Sweden have greater managerial autonomy and accountability than other SOEs

C. SOEs in South Korea and Sweden generally achieve inferior economic results to those in Ghana

D. Financial autonomy is a major factor contributing to SOEs managerial effectiveness

4835. Internal balance refers to ?
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A. monetary policy offsetting fiscal policy

B. exports equal to imports

C. exports minus imports

D. full employment and price stability
4836. A critic of Shock therapy to transition economies. Vladamir Popov, contends that shock therapists put a heavy emphasis on ?
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A. the creation of a small-scale private sector ans small independent banks

B. introducing the reform package at once to ensure that it became too late and costly to reverse the reforms

C. attempts to gradually remake institutions

D. agricultural reform rather than industrial reforms to overcome food insecurity

4837. Privatization refers to a range of policies including ?
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A. franchising or contracting public services or leasing public assets to the Private sector

B. Liberalization of entry into activities previously restricted to the public sector

C. . two infant industries merging into a monopoly

D. changing part of a public enterpriss ownership to the private sector

4838. Which of the following may constitute the International Monetary Funds conditionality for borrowing?
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A. restraining public sector employment and wage rates

B. limiting credit creation and liberalizing trade

C. government reducing budget deficts

D. . achieving market-clearing price

4839. Share prices will follow a random walk if ?
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A. people behave irrationally when choosing shares

B. shares are overvalued

C. markets reflect all available information in a rational way

D. shares are undervalued

4840. Which of the following reduces risk in a portfolio the greatest ?
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A. Increasing the number of shares in the portfolio from 1 to 10

B. Increasing the number of shares from 10 to 20

C. All of these answers provide the same amount of risk reduction

D. Increasing the number of shares from 20 to 30

4841. The study of a companys accounting statements and future prospects to determine its value is known as ?
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A. diversification

B. information analysis

C. risk management

D. fundamental analysis
4842. Diversification of portfolio can ?
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A. reduce aggregate risk

B. eliminate all risk

C. increase the standard deviation of the portfolios return

D. reduce idiosyncratic risk
4843. Compared to a portfolio composed entirely of shares a portfolio that is 50 percent government bonds and 50 percent shares will have a ?
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A. lower return and a higher level of risk

B. lower return and a lower level or risk

C. higher return and a higher level of risk

D. higher return and a lower level or risk

4844. If people are risk averse, then ?
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A. All of these answers are true

B. None of these answers are true

C. ir utility function exhibit the property of diminishing marginal utility of wealth

D. They dislike bad things more than the like comparable good things

E. The utility they would lose from losing a Rs50 bet would exceed the utility they would gain from winning a Rs 50 bet

4845. Which of the following should cause the price of a share of stock to rise ?
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A. An increase in expected dividends

B. All of these answers

C. A reduction in the interest rate

D. A reduction in aggregate risk

E. None of these answers

4846. Idiosyncratic risk is the ?
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A. uncertainty associated with the entire economy

B. risk associated with adverse selection

C. uncertainty associated with specific companies

D. risk associated with moral hazard

4847. An increase in the prevailing interest rate ?
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A. decreases the present value of future return from investment and decreases investment

B. increases the present value of future returns from investment and increases investment

C. increases the present value of future returns from investment and decreases investment

D. decreases the present value of future returns from investment and increase investment

4848. Which of the following does not help reduce the risk that people face ?
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A. diversifying their portfolio

B. All of these answers help reduce risk

C. buying insurance

D. increasing the rate of return within their portfolio
4850. It is difficult for an actively managed investment fund to outperform an index fund because ?
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A. all of these answers

B. index funds are able to buy undervalued stocks

C. stock markets tend to be inefficient

D. actively managed funds trade more often and charge fees for their alleged expertise