introduction to economics Mcqs
51. The public sector includes ?
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A. Market forces of supply and demand

B. Government ownership of assets

C. All trade via barter

D. Investors owning companies

52. Which of the following products would be least capable of producing an externality ?
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A. cigarettes

B. stereo equipment

C. inoculations against disease

D. food

E. education

53. A market can accurately be described as_________________?
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A. a place to sell things

B. a place where buyers and sellers meet

C. a place to buy things

D. the process by which prices adjust to reconcile the allocation of resources
54. Which of the following activities is most likely to produce an externality?
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A. A student reads a novel for pleasure

B. A student eats a hamburger in the student union.

C. A student sits at home and watches T.V

D. A student has a party in her room in the student hall of residence.
55. A rational person does not act unless ?
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A. The action produces marginal costs that exceed marginal benefits.

B. The action produces marginal benefits that exceed marginal costs.

C. the action is ethical

D. The action makes money for the person.

56. The total demand for goods and services in an economy is known as_____________?
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A. gross national product.

B. economy-wide demand

C. aggregate demand

D. national demand.

57. ________ and ___________ do not directly affect the demand curve ?
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A. the costs of production bank opening hours

B. the price of related goods preferences

C. the price of related goods consumer income

D. consumer incomes, tastes

58. Which of the following involves a trade off ?
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A. Going to university

B. Taking a nap

C. Watching a football game on Saturday afternoon

D. All of these answers involve trade-offs
59. If you income during one year is Rs10,000 and the following year it is Rs12,000 then it has grown by ________________?
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A. 2%

B. 12%

C. 16%

D. 20%
60. when a market is in equilibrium ?
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A. Excess demand and excess supply are zero

B. The market is cleared by the equilibrium price

C. quantity demanded equals quantity supplied

D. All of the above
61. Which of the following is a normative statement in economics ?
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A. More spending by the government reduces poverty

B. Higher taxes lead to less desire to work

C. The Pakistans economy is growing fast relative to other SAARC members

D. The government should concentrate on reducing unemployment
62. A recession is ?
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A. a period of very rapidly declining prices.

B. a period of declining unemployment

C. a period during which aggregate output declines.

D. a period of declining prices.

63. Which of the following is not one of the basic economic s ?
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A. How to produce

B. Who to produce for

C. How to maximize economic growth

D. What to produce

64. Which of the following situations describes the greatest market power ?
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A. a students impact on college tuition

B. Microsofts impact on the price of desktop operating systems

C. a farmers impact on the price of corn

D. Subarus impact on the price f cars

65. The sacrifice involved when you choose a particular course of action is called the?
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A. Producer cost

B. Alternative

C. Consumer cost

D. Opportunity cost
66. The study of inflation is part of ?
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A. macroeconomics.

B. descriptive economics

C. normative economics

D. microeconomics

67. Human wants are_______________?
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A. Likely to decrease over time

B. Limited

C. Always fixed

D. Unlimited
68. Trade-offs are required because wants are unlimited, and resources are ?
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A. unlimited

B. Efficient

C. economical

D. Scarce
69. Periods of less than full employment corresponds to _________________ ?
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A. points outside the production possibility curve

B. points inside the production possibility curve.

C. either points inside or outside the production possibility curve.

D. points on the production possibility curve

70. A real value can be derived from a nominal value by ?
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A. adjusting for data collection errors

B. adjusting for population changes

C. adjusting or changes in prices

D. adjusting for changes over time

71. Aggregate supply is the total amount ?
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A. of goods and services produced in an economy.

B. of products produced by a given industry.

C. of labor supplied by all households.

D. Produced by the government.

72. A mixed economy ?
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A. Has supply but not demand

B. Has market forces and government intervention

C. Has supply and demand

D. Has demand but not supply