MCQOPTIONS
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MCQOPTIONS
This section includes 381 Mcqs, each offering curated multiple-choice questions to sharpen your General knowledge and support exam preparation. Choose a topic below to get started.
| 251. |
The total amount of physical capital in the economy or in a firm or industry is termed as |
| A. | Capital Market |
| B. | Capital Gains |
| C. | Capital Stock |
| D. | None of the above |
| Answer» B. Capital Gains | |
| 252. |
Suppose your income rises from Rs19,000 to Rs31,000 while the CPI rises from 122 to 169 Your standard of living has likely ? |
| A. | fallen |
| B. | risen |
| C. | stayed the same |
| Answer» D. | |
| 253. |
According to the Phillips curve unemployment will return to the natural rate when ? |
| A. | Nominal wages are equal to expected wages |
| B. | Real wages are back at equilibrium level |
| C. | Nominal wages are growing faster than inflation |
| D. | Inflation is higher than the growth of nominal wages |
| Answer» B. Real wages are back at equilibrium level | |
| 254. |
Teenagers who are sexually active are in danger of______________? |
| A. | becoming pregnant |
| B. | contracting sexually transmitted diseases including AIDS |
| C. | having to quit school |
| D. | all of the above |
| Answer» E. | |
| 255. |
An agreement between the owner of a property to grant use of it to another party for a specified period at specified rent payable annually is called: |
| A. | Charter |
| B. | Contract |
| C. | Lease |
| D. | Compact |
| Answer» B. Contract | |
| 256. |
Society and culture______________? |
| A. | are interrelated and interdependent |
| B. | are in continual conflict |
| C. | are separate phenomena |
| D. | all of the above |
| Answer» B. are in continual conflict | |
| 257. |
Tariffs are used to protect infant industries these industries are those which ? |
| A. | employ many young or untrained workers |
| B. | are competing with well-established overseas firms |
| C. | are not yet large enough to achieve economies of scale |
| D. | use a new technology |
| Answer» D. use a new technology | |
| 258. |
fiscal incentives to attract businesses from abroad include ? |
| A. | tax holidays |
| B. | - accelerated depreciation |
| C. | I- import duty relief |
| D. | - lower tax rates for reinvested business profits |
| Answer» B. - accelerated depreciation | |
| 259. |
Supporters of antimonopoly enforcement argue that the real gain from such enforcement ? |
| A. | is that if encourages firms to engage in research which leads to new products |
| B. | is the revenue generated from the fines paid by those individuals who are found guilty of antitrust violation? |
| C. | Is that this policy serves to deter firms from engaging in such practices as collusion, price-fixing and deceptive advertising |
| D. | is that it forces firms to produce efficiently. |
| Answer» D. is that it forces firms to produce efficiently. | |
| 260. |
Which of the following is a characteristic of pure monopoly? |
| A. | One seller of the product |
| B. | Low barriers to entry |
| C. | Close substitute products |
| D. | Perfect information |
| Answer» B. Low barriers to entry | |
| 261. |
Suppose the equilibrium price for apartments is Rs500 per month and the government imposes rent controls of Rs250 Which of the following is unlikely to to occur as a result of the rent controls? |
| A. | There may be long lines of buyers waiting for apartments |
| B. | Landlords may discriminate among apartment renters |
| C. | Landlords may be offered bribes to rent apartments |
| D. | there will be a storage of housing |
| Answer» B. Landlords may discriminate among apartment renters | |
| 262. |
You have taken this quiz and received a grade of 3 out of a possible 10 points (F). You are allowed to take a second version of this quiz. If you score 7 ormore, you can raise your score to a 7 (C). You will need to study for the second version. In making a rational decision as to whether or not to retake the test, you should |
| A. | Always retake the quiz |
| B. | Consider only the marginal benefits from of retaking the quiz (four extra points) |
| C. | Consider only the marginal opportunity costs from taking the quiz (the time spent studying and taking the quiz) |
| D. | Consider both the marginal benefits and the marginal opportunity costs of retaking the quiz |
| Answer» B. Consider only the marginal benefits from of retaking the quiz (four extra points) | |
| 263. |
Supply side policies are considered effective in ? |
| A. | Increasing government expenditure |
| B. | reducing taxation |
| C. | increasing the money supply |
| D. | encouraging technological progress |
| Answer» E. | |
| 264. |
In terms of economics a constant annual payment is called: |
| A. | Asset |
| B. | Annuity |
| C. | Capital |
| D. | None of the above |
| Answer» B. Annuity | |
| 265. |
The balance on current account ? |
| A. | equals the absolute value of the balance on capital account |
| B. | - is financed by savings |
| C. | I- is net grants minus remittances |
| D. | - includes goods services and unilateral transfers |
| Answer» B. - is financed by savings | |
| 266. |
The bowed shape of the production possibilities curve illustrates: |
| A. | The law of increasing marginal cost |
| B. | That production is inefficient |
| C. | That production is unattainable |
| D. | The demand is relatively inelastic |
| Answer» B. That production is inefficient | |
| 267. |
Suppose a project results in a net stream of $200 per year for 4 years, but nothing thereafter, Assume that the discount rate is 5 percent. The discounted value of the total income stream over the 4-year period is ? |
| A. | 800 |
| B. | 40,000 |
| C. | more than zero but less than 800 |
| D. | less than zero |
| Answer» D. less than zero | |
| 268. |
Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raise its price to Rs 40 per month the number of subscribers will fall to 20000 At which of the following price does small Town Cablevision earn the greatest total revenue ? |
| A. | Rs 0 per month |
| B. | Rs 30 per month |
| C. | Rs 40 per month |
| D. | Either Rs 30 or Rs 40 per month because the price elasticity of demand is 1.0 |
| Answer» C. Rs 40 per month | |
| 269. |
Surveys of American voters reveal_______________? |
| A. | a general support of the government |
| B. | full support of democratic principles |
| C. | the majority of people and political leaders are equally committed to democratic values |
| D. | a general cynicism about government |
| Answer» E. | |
| 270. |
Suppose that a Swiss television set that costs 400 francs in Switzerland cost $200 in the United States. The exchange rate between the franc and the dollar is ? |
| A. | 2 francs per dollar |
| B. | 1 franc per dollar |
| C. | $2 per franc |
| D. | $3 per franc |
| Answer» B. 1 franc per dollar | |
| 271. |
Community Colleges desired to increase revenues. They decided to raise fees paid by students with Bachelors degrees to $50 per unit because they believed this would result in greater revenues. But in reality, total revenues fell. Therefore, the demand for Community College courses by people with Bachelors degrees must have actually been: |
| A. | Relatively inelastic |
| B. | Unit elastic |
| C. | Relatively elastic |
| D. | Perfectly elastic |
| Answer» B. Unit elastic | |
| 272. |
Space Satellite Badr II was launched on December 10, 2001 when Pakistan launched Pak Sat I ? |
| A. | December 29, 2002 |
| B. | December 25, 2002 |
| C. | January 25, 2003 |
| D. | February 15, 2003 |
| Answer» D. February 15, 2003 | |
| 273. |
Term the rules and particles that govern the management of an organization ? |
| A. | Internal laws |
| B. | By laws |
| C. | Character |
| D. | Memorandum of articles |
| Answer» C. Character | |
| 274. |
Suppose an oligopolist individually maximizes its profits. When calculating profits, if the output effect exceeds the price effect on the marginal unit of production, then the oligopolist ? |
| A. | Should produce more units |
| B. | has maximized profits. |
| C. | is in a Nash equilibrium |
| D. | Should produce fewer units |
| Answer» B. has maximized profits. | |
| 275. |
Since World War II, people in both Africa and Latin America have moved from rural to urban areas, The major cause of this movement has been the ? |
| A. | rejection of traditional custom |
| B. | expectation of improved economic opportunities |
| C. | guarantee of better housing |
| D. | fear of civil war |
| Answer» C. guarantee of better housing | |
| 276. |
If worker A earns more in wages than worker B, it could be because: |
| A. | The product made by worker A sells for a higher price than that made by worker B |
| B. | Worker A uses more capital per worker than worker B |
| C. | Worker A has more natural ability than worker B |
| D. | All of the above |
| Answer» B. Worker A uses more capital per worker than worker B | |
| 277. |
The declaration by a court of law that a company or individual is insolvent, i.e., it cannot pay its debts on the due dates is known as |
| A. | Bankruptcy |
| B. | Penury |
| C. | Both of the above |
| D. | None of the above |
| Answer» B. Penury | |
| 278. |
Safety stock of grains held by the government is: |
| A. | Surplus stock |
| B. | Overhead stock |
| C. | Buffer stock |
| D. | Overall stock |
| Answer» B. Overhead stock | |
| 279. |
That the division of labor is limited by the size of the market best applies to which explanation of trade ? |
| A. | Factor endowment theory |
| B. | Product life cycle theory |
| C. | Economies of scale theory |
| D. | Overlapping demand theory |
| Answer» D. Overlapping demand theory | |
| 280. |
Suppose the price level falls but because of fixed nominal wage contracts the real wage rises and firms cut back on production This is a demonstration of the ? |
| A. | sticky-wage theory of the short-run aggregate supply curve |
| B. | classical dichotomy theory of the short-run aggregate supply curve |
| C. | misperceptions theory of the short-run aggregate supply curve |
| D. | sticky-price theory of the short run aggregate supply curve |
| Answer» B. classical dichotomy theory of the short-run aggregate supply curve | |
| 281. |
Government grants to suppliers of goods and services is called: |
| A. | Subsidy |
| B. | Support |
| C. | Tax |
| D. | Grant |
| Answer» B. Support | |
| 282. |
Some American Indians cannot express the idea of time in their tribal languages This fact shows that_____________ ?? |
| A. | their culture is still at a primitive stage |
| B. | they have not yet reached the industrial stage of evolution when time is money |
| C. | like all lower-class persons they focus on the present |
| D. | time is not an important value in their culture |
| Answer» E. | |
| 283. |
Term the shared of profits of a joint stock company ? |
| A. | Share |
| B. | Profit-share |
| C. | Dividend |
| D. | Margin |
| Answer» D. Margin | |
| 284. |
Since the supply of undeveloped land is relatively inelastic a tax on undeveloped land would generate ? |
| A. | a small deadweight loss and the burden of the tax would fall on the renter |
| B. | a large deadweight loss and the burden of the tax would fall on the landlora |
| C. | a large deadweight loss and the burden of the tax would fall on the renter. |
| D. | a small deadweight loss and the burden of the tax would fall on the landlord |
| Answer» E. | |
| 285. |
In order to practice price discrimination, which of the following is needed? |
| A. | Some degree of monopoly power |
| B. | An ability to separate the market |
| C. | An ability to prevent reselling |
| D. | All of the above |
| Answer» B. An ability to separate the market | |
| 286. |
Complete currency pass through arises when a 10 percent depreciation in the value of the dollar causes U.S? |
| A. | import prices to fall by 10 percent |
| B. | import prices to rise by 10 percent |
| C. | export prices to rise by 10 percent |
| D. | export prices to fall by 10 percent |
| Answer» C. export prices to rise by 10 percent | |
| 287. |
When my income was $100,000, I paid $10,000 in taxes. When my income became $200,000, I paid $40,000 in taxes. My marginal tax rate is: |
| A. | 10% |
| B. | 20% |
| C. | 30% |
| D. | 40% |
| Answer» B. 20% | |
| 288. |
Which of the following is True about HIV/AIDS ? |
| A. | Women comprised 58 percent of HIV-positive adults in the Sub-Sahara |
| B. | - AIDs infection rates in Africa are highest among urban high |
| C. | I- in 2001 40 million people with HIV/AIDS lived in sub-Saharan Africa |
| D. | - Since 1981 120 million people have died of AIDS |
| Answer» B. - AIDs infection rates in Africa are highest among urban high | |
| 289. |
Structural economists from the United Nations Economic Commission for Latin America (ECLA) emphasized ? |
| A. | contractionary monetary and fiscal policies |
| B. | currency devaluation |
| C. | long-run institutional and structural economic change |
| D. | short term-adjustment with a human face |
| Answer» D. short term-adjustment with a human face | |
| 290. |
Term the written order which directs that a specified sum of money be paid to a specified person ? |
| A. | Bill of Exchange BE |
| B. | Bill of Lading |
| C. | Bearer Cheque |
| D. | None of them |
| Answer» B. Bill of Lading | |
| 291. |
Can money perform the following functions? |
| A. | To compare the value of goods |
| B. | To act as medium of exchange |
| C. | Both of the above |
| D. | None of the above |
| Answer» B. To act as medium of exchange | |
| 292. |
Empirical evidence regarding in the effects of currency depreciation on the balance of trade indicates that? |
| A. | depreciation generally improves the trade balance |
| B. | depreciation generally hurts the trade balance |
| C. | no strong generalization is possible |
| D. | depreciation has no effect on the trade balance |
| Answer» D. depreciation has no effect on the trade balance | |
| 293. |
The agricultural price support program is an example of |
| A. | A price ceiling |
| B. | A price floor |
| C. | Equilibrium pricing |
| D. | Sellers providing goods for free that were formerly not free |
| Answer» B. A price floor | |
| 294. |
Which of the following is true about the way by which SDG&E has been regulated by the PUC? |
| A. | SDG&E has been allowed to earn very high economic profits |
| B. | The profits of SDG&E are calculated as a percent of the value of the capital goods |
| C. | When the demand for electricity would fall, the price of electricity would also fall |
| D. | All of the above |
| Answer» B. The profits of SDG&E are calculated as a percent of the value of the capital goods | |
| 295. |
Prototypes of international agricultural research centers are the ? |
| A. | international Center for the Improvement of Maize and Wheat (CIMMYT) |
| B. | - International Rice Research Institute (IRRI) |
| C. | I- Synthetic Rubber Research Institute (SRRI) |
| D. | - Center for International Agricultural production Control (CIAPC) |
| Answer» B. - International Rice Research Institute (IRRI) | |
| 296. |
A financial intermediary is a middleperson between ? |
| A. | buyers and sellers |
| B. | husbands and wives. |
| C. | borrowers and lenders. |
| D. | labor unions and firms |
| Answer» D. labor unions and firms | |
| 297. |
Since 1998 many government have defined unemployment using ? |
| A. | a labour force survey. |
| B. | the number out of work and claiming benefit |
| C. | the percentage of the labour force not in work |
| D. | the ILO/OECD standardised unemployment measurement |
| Answer» E. | |
| 298. |
A certificate that specifies the country of origin of an export or import is called |
| A. | Certificate of Deposit |
| B. | Certificate of Origin |
| C. | Certificate of Incorporation |
| D. | None of the above |
| Answer» B. Certificate of Origin | |
| 299. |
Economic development means: |
| A. | Increase in agricultural production of a country |
| B. | Increase in mineral resources of the country |
| C. | Increase in real national income and standard of the living of the people of country |
| D. | Increase in consumption expenditure of the country |
| Answer» B. Increase in mineral resources of the country | |
| 300. |
If foreign manufacturing costs and profit margins in response to a depreciation in the U.S dollar the effect of these actions is to ? |
| A. | shorten the amount of time in which the depreciation leads to smaller trade deficit |
| B. | shorten the amount of time in which the depreciation leads to smaller trade surplus |
| C. | lengthen the amount of time in which the depreciation leads to smaller trade deficit |
| D. | lengthen the amount of time in which the depreciation leads to smaller trade surplus |
| Answer» D. lengthen the amount of time in which the depreciation leads to smaller trade surplus | |