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
4901. An increase in productivity should ?
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A. Lead to a shift in supply outwards (i.e more supplied at each and every price)

B. Lead to a higher equilibrium and lower equilibrium quantity

C. Lead to a contraction of supply

D. Lead to an expansion of supply

4902. If a firm wage costs increase this will cause __________ and __________?
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A. opportunity cost to increase the firm will close

B. average cost will rise output will increase ____ output and an upward shift in marginal revenue ____ output

C. marginal revenue to increase output to fall

D. marginal cost to increase, output to fall
4903. A supply curve that starts at the origin has ?
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A. A positive price elasticity of supply

B. A price elasticity of supply less than one

C. A price elasticity of supply greater than one

D. A price elasticity of supply equal to one
4904. The price of burgers increase by 22% and the quantity of burgers demanded falls by 25% This indicates that demand for burgers is ?
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A. unitarily elastic

B. inelastic.

C. elastic

D. perfectly elastic

4905. A firm that breaks even after all economic costs are paid is earning ?
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A. Accounting profit

B. Economic profit

C. Normal profit

D. Supernormal profit

4906. Increase unemployment benefits and less incentive to work would ?
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A. shift aggregate demand to the right

B. shift aggregate supply to the right

C. shift aggregate supply to the left

D. shift aggregate demand to the left

4907. The extra utility from consuming one more unit of a good is called ?
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A. Additional utility

B. Marginal utility

C. Surplus utility

D. Bonus utility

4908. A movement along the demand curve to the left may be caused by ?
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A. a rise in the price of inputs

B. a rise in income

C. a fall in the number of substitute goods

D. a decrease in supply.
4909. The income effect of a price increase of a normal good is to ________ of that good and the substitution effect is to _________ of that good?
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A. reduce quantity demanded, increase quantity demanded

B. increase quantity demanded, reduce quantity demanded

C. reduce quantity demanded, reduce quantity demanded

D. increase quantity demanded, increases quantity demanded

4910. The price of apples falls by 5% and quantity demanded increases by 6% This means that demand is ?
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A. elastic

B. perfectly elastic

C. zero elastic

D. inelastic

4911. A shift in aggregate supply is likely to ?
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A. Reduce the general price level and increase national income

B. Reduce the general price level and reduce national income

C. Increase the general price level and reduce national income

D. Increase the general price level and increase national income

4912. The quantity demanded of Pepsi has decreased. The best explanation for this is that ?
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A. Pepsis advertising is not as effective as in the past .

B. Pepsi consumers had an increase in income.

C. The price of Pepsi increased

D. The price of Coca Cola has increased,

4913. If a product is an inferior good ?
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A. Demand in inversely related to price

B. Demand is inversely related to income

C. Demand is inversely related to the price of substitutes

D. Demand is directly related to price

4914. An upward shift in marginal cost _____ output and an upward shift in marginal revenue ______ output?
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A. reduces; increases

B. reduces; reduces

C. increases; increases

D. increases; reduces

4915. If the demand for coffee decreases as income decreases, coffee is ?
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A. a substitute good

B. a normal good

C. a complementary good

D. an inferior good

4916. Normally a demand curve will have the shape:_________?
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A. Horizontal

B. Downward Sloping

C. Vertical

D. Upward Sloping

4917. An increase in aggregate demand if aggregate supply is totally inelastic will ?
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A. decrease output and price

B. increase output but not price

C. increase price but not output

D. increase output and price

4918. Which of the following is consistent with the law of supply ?
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A. As the price of calculators rise, the quantity supplied of calculators decreases, ceteris paribus.

B. As the price of calculators calls the supply of calculators increases, ceteris paribus.

C. As the price of calculators rise, the quantity supplied of calculators increases, ceteris paribus.

D. As the price of calculators rise, the supply of calculators increases ceteris paribus.

4919. An increase in the costs of production will ?
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A. Shift demand outwards

B. Shift supply inwards

C. Shift demand inwards

D. Shift supply outwards so more is supplied at each and every price, all other things unchanged

4920. The price elasticity of supply is +4 The price increases by 15% sales were originally 200 units What will they be now ?
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A. 320 units

B. 120 units

C. 80 units

D. 60 units

4921. Marginal revenue is the ________ when output is __________?
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A. Change in total revenue, increase by one unit

B. change in total revenue increased

C. change in average revenue, increased by one unit

D. Change in average revenue, increased

4922. If demand is __________ then price cuts will _________ spending?
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A. elastic, decrease

B. elastic; increase

C. none of the above

D. inelastic; increase

4923. An increase in aggregate demand will have most effect on prices if ?
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A. Aggregate supply is price inelastic

B. Aggregate supply has a unitary price elasticity

C. Aggregate demand is price inelastic

D. Aggregate supply is price elastic
4924. The price elasticity of demand measures ?
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A. a change in price

B. How far a demand curve shifts

C. a change in quantity demanded

D. The responsiveness of quantity demanded to a change in price
4925. A fall in price ?
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A. Will cause an outward shift of supply

B. Leads to a higher level of production

C. Will cause an inward shift of demand

D. May be caused by a fall in demand
4926. If your income doubles and the prices of the goods you buy double then your demand for these goods will likely?
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A. not change

B. shift

C. decrease

D. increase

4927. Positive cross elasticities suggest that goods are ____ and negative cross-elasticities that goods are ?
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A. normal, inferior

B. substitutes complements

C. substitutes inferior

D. normal, complements

4928. For a normal good ?
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A. The price elasticity of demand is positive the income elasticity of demand is negative

B. The price elasticity of demand is negative the income elasticity of demand is negative

C. The price elasticity of demand is positive; the income elasticity of demand is positive

D. The price elasticity of demand is negative the income elasticity of demand is positive
4929. The increase in total cost when one more unit is produced is known as ?
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A. marginal cost

B. limited cost

C. opportunity cost

D. average cost
4930. The price elasticity of demand is a negative number this means ?
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A. An increase in income will reduce the quantity demanded

B. Demand is price inelastic

C. Demand is price elastic

D. The demand curve is downward sloping
4931. An increase in price all other things unchanged leads to ?
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A. Shift demand inwards

B. A contractions of demand

C. Shift demand outwards

D. An extension of demand

4932. Profits are maximized when ?
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A. average cost is less than average revenue

B. marginal cost equals marginal revenue

C. revenue is maximized

D. costs are minimized

4933. According to the law of diminishing utility ?
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A. Increasing units of consumption increase the marginal utility

B. Utility is at a maximum with the first unit

C. Total utility will rise at a falling rate as more units are consumed

D. Marginal product will fall as more units are consumed

4934. The price elasticity of demand is the ?
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A. ratio of the percentage change in quantity demanded to the percentage change in price.

B. ratio of the change in price to the change in quantity demanded.

C. ratio of the change in quantity demanded to the change in price.

D. ratio of the percentage change in price to the percentage change in quantity demanded.

4935. Average income increase from Rs20,000 p.a to Rs 22,000 p.a Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ?
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A. Income elasticity is -2

B. The good is inferior

C. The product is normal

D. Demand is price inelastic

4936. The income elasticity is +2 and income increases by 20% sales were 5000 units, what will they be now ?
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A. 7000

B. 5500

C. 3000

D. 4500

4937. If a product is a vablen good ?
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A. Demand is directly related to price

B. Demand is inversely related to price

C. Demand is inversely related to income

D. Demand is inversely related to the price of substitutes

4938. An increase in price all other things unchanged leads to ?
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A. A contraction of supply

B. A shift in supply inwards

C. A shift in supply outwards

D. An extension of supply
4939. An increase in the price of a complement for product A would ?
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A. Shift supply for product A inwards

B. Shift demand for product A inwards

C. Shift demand for Product A outwards

D. Shift supply for product A outwards

4940. Demand for a normal product may shift outwards if ?
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A. Price decreases

B. income falls

C. The price of a substitute falls

D. The price of a complement rises

4941. What effect is working when the price of a good falls and consumers tend to buy it instead of other goods ?
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A. The income effect

B. The diminishing marginal utility effect.

C. The ceteris paribus effect

D. The substitution effect
4942. Market equilibrium exists when _________ at the prevailing price?
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A. quantity demanded equals quantity supplied

B. quantity demanded is less than quantity supplied

C. quantity supplied is greater than quantity demanded

D. quantity demanded is greater than quantity supplied

4943. The price of computer chips used in the manufacture of personal computers has fallen. This will lead to _________ personal computer?
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A. an increase in the supply of

B. a decrease in the supply of

C. an increase in the quantity supplied of

D. a decrease in the quantity supplied of

4944. A contraction in supply occurs when ?
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A. The quantity supplied falls when the price falls

B. The supply curve shifts outwards

C. The supply curve shifts inwards

D. Demand shifts outwards

4945. Which best describes a demand curve ?
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A. The quantity consumers are willing and able to buy at each and every income all other things unchanged

B. the quantity consumers would like to buy in an ideal world

C. The quantity consumers are willing and able to buy each and every price all other things changed

D. The quantity consumers are willing to sell

4946. Suppose the demand for good Z goes up when the price of good Y goes down. We can say that goods Z and Y are ?
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A. substitutes.

B. perfect substitutes

C. complements

D. unrelated goods.

4947. If the quantity demanded of beef increases by 5% when the price of chicken increase by 20% the cross-price elasticity of demand between beef and chicken is ?
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A. -0.25

B. 0.25

C. -4

D. 4

4948. Demand curves are derived while holding constant ?
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A. incomes, tastes, and the price of other goods.

B. tastes and the price of other goods

C. income, tastes, and the price of the good.

D. income and tastes

4949. Price increases from 10 to 12 pence and the price elasticity of demand is -0.5 The quantity demanded was 500 units. What will it be now ?
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A. 450 units

B. 500 units

C. 490 units

D. 550 units

4950. Which best describes a supply curve ?
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A. The quantity producers are willing and able to sell at each and every price all other things unchanged

B. The quantity producers are willing and able to sell at each and every income all other things unchanged

C. The quantity producers are willing and able to sell at each and every point in time all other things unchanged

D. The quantity consumers would like to buy in an ideal world