MCQs 100

                             

1.  Income elasticity of demand for an inferior good is: 

(a)Positive  

(b)Zero  

(c)Both

(d)None of these 


2.  Convexity means averages are ________________ than extremes: 

(a) Worse 

(b) Positive 

(c) Better  

(d)None 


3.  Sum of MPC and MPS equals: 

(a)1

(b)2

(c)3

(d)None of these 


4.  During the Liquidity Trap, LM curve is: 

(a)Less elastic  

(b)Positive  

(c)Perfectly elastic  

(d)None of these 


5.  The dominant factor of production is: 

(a)Energy  

(b)Labour 

(c)Technology  

(d)None of these 


6.  GDP deflator is a ratio between: 

(a)Input prices  

(b)Output prices

(c)Both 

(d)None of these 


7.  During monopoly, the equilibrium condition is: 

(a)MC=P  

(b)MC>MR  

(c)MC=MR  

(d)None of these 


8.  During perfect competition, the firm would earn a normal profit when: 

(a)AC>AR  

(b)AR>AC 

(c) MR=MC 

(d)None


9.  Roy’s identity is applied on: 

(a)Food  

(b)Bread 

(c)Utility  

(d)None of these 


10.  The following is the narrowest measure of supply of money: 

(a)M2  

(b)M3  

(c)M1  

(d)None of these 


11.  A positive externality in which a consumer wishesto possess a good in part because others do: 

(a)Supply  

(b)Concavity  

(c)Money demand  

(d)None of these 


12.  The profit function is of: 

(a)Homogeneous of degree = 1  (b)Homogeneous of degree = 2 

(c)Homogeneous of degree = 0  

(d)None of these 


13.  The derivative of cost function withrespect to output price provides: 

(a)  Input supply function  

(b)Output supply function 

(c)Both (a) & (b)  

(d)None of these



14.  A strategy that is optimal, no matter what an opponent does: 

(a)Dominant firm  

(b)Duopoly  

(c)Dominant strategy  

(d)None of these



15.  A devaluation of a currency takes place under 

(a)Flexible exchange rate  

(b)Fixed exchange rate 

(c)Clean floating system  

(d)None of these 


16.  Nominal interest rate is: 

(a)Inflation minus Tax  

(b)Tax plus Indirect Tax 

(c)Real interest rate minus Inflation  (d)None of these 


17.  An un-anticipated increase in money supply is neutral during: 

(a)Short run period  

(b)Medium run period 

(c)Both 

(d)None of these 


18.  A rise in general price level shifts the LM curve: 

(a)Down and to the right  

(b)Up and to the left 

(c)Positively sloped  

(d)None of these



19.  Decrease in tax shiftsthe IS curve: 

(a)Down and to the left  

(b)Negatively sloped 

(c)Up and to the right  

(d)None of these



20.  Gross National Product is: 

(a)GDP – NNP  

(b)NFA – GNI  

(c)GDP – NX  

(d)None of these



21.  Foreign aid comprises of: 

(a)Grants  

(b)Loans  

(c)Both 

(d)None of these 


22.  Per capita income of Pakistan during the fiscal year 2011-12 was: 

(a)$ 1258  

(b)$1372  

(c)$1025   

(d)None of these 


23.  The GINI coefficient is measure of: 

(a)Inequality  

(b)Poverty  

(c)Growth  

(d)None of these



24.  During the last decade income inequality in rural areas of Pakistan has: 

(a)Increased  

(b)Decreased  

(c)Remained unchanged  

(d)None of these 


25.  The share of agriculture in GDP is: 

(a)21%  

(b)10%  

(c)12% 

(d)None


26.  During 1970’s the planning was concerned to: 

(a)Industrial planning   

(b)Import substitution

(c)Structural planning  

(d)None of these 


27.  National Savings as a percent of GDP during 2011-2013 was: 

(a)10.7  

(b)13.1  

(c) 9.5 

(d)None of these 


28.  The growth rate of manufacture sector during 2011-12 was: 

(a)1.7%  

(b)4.1%  

(c)5.2%  

(d)None of these 

29.  The best measure of economic development among following is: 

(a)NNP  

(b)HDI  

(c)GDP  

(d)None of these 

30.  The main objective of Monetary or fiscal policy is: 

(a)Economic stablization  

(b)Efficiency  

(c)Both (a) and (b)  

(d)None of these



31.  Direct taxes during 2011-12 were around  of total tax revenue. 

(a)37%  

(b)63%  

(c)15%  

(d)None of these 


32.  Public debt as a percent of GDP for 2011-12 was: 

(a)58% 

(b)65%  

(c)50%  

(d)None of these 


33.  Govt. of Pakistan borrows from: 

(a)Internal  source

(b)External sources  

(c) Both

(d)None of these 


34.  Growth rate of agriculture sector during 2011-12 was: 

(a)3.1%  

(b)5.4%  

(c)2.9%   

(d)None of these 


35.  Nationalization of industries took place during the regime of: 

(a)ZA Bhutto  

(b)Zia ul Haq  

(c)Ayub Khan  

(d)None of these 


36.  Development economics is concerned with: 

(a)Efficient allocation of scarce resources 

 (b)Economic, social and political institutions. 

(c)Both 

(d)None of these 


37.  The last land reforms in Pakistan were introduced in: 

(a)1972  

(b)1977  

(c)1981    

(d)None of these 


38.  IMF advances loan for: 

(a)Construction  

(b)Balance of payment  

(c)Travelling  

(d)None of these 


39.  Sixth five year plancovers the period: 

(a)1965-70  

(b)1960-65  

(c)1988-93  

(d)None of these 


40.  The unemployment rate in Pakistan during 2010-11 was: 

(a)7%  

(b)5%  

(c)6%

(d) None


41) Demand curve in case of Giffen good is:

(a) Negatively sloped 

(b) Vertical

(c) Positively sloped 

(d) None of these


42) Price consumption curve in case of complementary goods is:

(a) Downward sloping 

(b) Vertical 

(c) Upward sloping 

(d) None of these


43) In case of two goods, following utility approach, a consumer is in equilibrium when:

(a) MUx/Px = MUy/Py 

(b) MUx/Px < MUy/Py

(c) MUx/Mx > MUy/Py  

(d) None

44) In short run:

(a) Labour is variable 

(b) Both labour and capital are variable

(c) Both labour and capital fixed 

(d) None of these


45) When MC is equal to AC, the AC:

(a) Increases 

(b) Decreases

(c) Remains constant 

(d) None of these


46) Normal profit, excess profit and loss of the firm depends on level of:

(a) Average costs in short run

 (b) Total costs in short run

(c) Marginal costs in short run 

(d) All of these


47) In case of perfect competition, the sellers are:

(a) Two 

(b) A few

(c) Very large 

(d) None of these


48) The firm is in equilibrium when:

(a) Slope of TC = Slope of TR 

(b) Slope of TC is less than slope of TR

(c) Slope of TC is more than slope of TR (d) None of these


49) The Marginal Revenue Product of labour MRPLis:

(a) MR x MP 

(b) MR / MP

(c) MR – MP  

(d) Both (b) and (c)


50. In case of imperfect competition the MRPLis the:

(a) Supply of labour curve 

(b) Demand for labour curve

(c) Both of these 

(d) None of these



51.What is a common property regime?

A) Individuals hold entitlement

B) Government owns and controls property

C) No one owns or exercise control over the resource

D) Property is jointly owned and managed by a specific group



52. Which of the following is NOT a cause of market failure?

A) Asymmetric information 

B) Externalities

C) Monopoly power 

D) Competitiveness



53.What are command and control regulation (CAC)?

A) Government’s use of price and quantity mechanism to internalize the externalities

B) Government’s placement of a tax directly on pollution

C) Government’s implementation of a subsidy

D) Government’s use of laws and regulations that dictate the standards and/or technology used to reduce pollution



54.. Which theory or rule claims that environmental regulations spur innovations and new technologies, thus increasing a firm’s competitiveness?

A) Coase Theorem 

B) The Precautionary Principle

C) Hotellings rule 

D) Porter Hypothesis



55.. Some assets which are very much liquid though not as much as money itself is called

A) Near Money 

B) Dear Money

C) Substitute Money 

D) Fiat Money



56. Average number of money transfer among spenders during a given period of time is called

A) Marginal acceleration of money

B) Average acceleration of money

C) Marginal velocity

D) Transaction velocity of money



57. The law of ------ says “cheap money drives out dear money”

A) J.S. Mill 

B) Gresham 

C) Say 

D) Keynes



58. Secondary deposit refers to

A) Term deposits

B) Recurring deposits

C) Deposits created through lending


D) Fixed deposits



59. Match list I with list II and select the correct answer using the codes given below List I List II

List 1

a. Restatement of Quantity theory

b. Quantity theory of money 

c. Inventory theory of money

List 2

(1) Milton Friedman

(2) Irving Fisher

(3) Baumol

     a b c

A) 1 2 3

B) 1 3 2

C) 3 2 1

D) 2 3 1



60. Which among the following are commercial banks?

1. RBI II.SBI III. NABARD IV.LIC

A) All the four 

B) IV only

C) II and III only 

D) II only



61. According to which principle, the tax systems should be able to yield enough revenue for the treasury, and the government should not be forced to resort to deficit financing

A) Canon of certainty 

B) Canon of productivity

C) Canon of convenience

 D) None of the above



62. A tax is said to be regressive when its burden falls

A) More heavily on the poor than on the rich

B) Less heavily on the poor than on the rich

C) Equally on the poor and the rich

D) None of the above



63. Task force was set up under the chairmanship of Dr. Vijay L. Kelker in 2002 to

A) Liberate the foreign trade sector in India



B) Abolish the Gift Tax Act



C) Recommend measures for the simplification and rationalization of direct and indirect taxes



D) Abolish the indirect taxes



64. A tax will be fully borne by the buyers if the demand elasticity is

A) 1 B) 0 C) ∞ D) < 0



65. What is the correct sequence of the following

1. Marakkesh Declaration, 2. Smithsonian Agreement, 3. Keynes Plan

A) 1,2,3 

B) 2,3,1 

C) 3,2,1 

D) 3,1,2



66. -------.is the theoretical possibility that the imposition of a tariff on imports may reduce the relative internal price of that good

A) Leontiff Paradox 

B) Metzler Paradox

C) Smith Paradox 

D) None of the above



67.Real income growth means:-

A.GNP increasing

B.GDP increasing

C.PCI increasing

D.All



68.HDI,PQLI & Basic needs Approach related with:-

A.Economic Development

B. National income

C.Life Quality

D.None



69.How do any country want to growth his country :-

A.Production

B.Activities channel

C.Allowtment

D.All



70.Less Expenses concept developed by

A.Marshall

B.Nelson

C.Yang

D.Mirdal



71.Related toEconmic Development & Per capta income (PCI),which shaped curve given by Kujnets :-

A.L shaped

B.U Shaped

C.Rectengular Hyperbola

D.None



72.Growth Formula :-

A.(Diff.b/w current &base year income)/base year income

B.(Diff.b/w current &base year income)/current year income

 C.(Diff.b/w base &current year income)/base year income

 D.(Diff.b/w base &current year income)/current year income



73.Agriculture & industrial Dualism  related to economist:-

A.Mint

B.Mint & Mirdal

C.Arthor Levis

D. Levis & Hings



74.Classincal Economist :-

A.Smith

B. Marshall

C.solow

D.mead

Code:

a.A,B,C&D

b.A&B

c.A&D

d.A,B&D



75.Marginal income concept Given by

A.Mehta

B.Robinason

C.Both

D.none



76.GNP gap defined as

A.market price-fixed price

B.current price-base price

C.Both

D.None



77.when was SBI associate bank establish ?

A.1955

B.1921

C.1959

D.1949



78.Fiscal Policy is connected with?

A. exports and imports

B. Issue of currency

C. public reven ue and expenditure

D. None of these



79.If a five percent change in price causes a five percent reduction in quantity demanded then demand is:

A).perfectly elastic.       B).elastic.

C).unitary elastic.          D).inelastic.



80.Which Five year plan in India had ‘poverty alleviation’ as one of its objectives?

A. First five year plan

B. Third five year plan

C. Fifth five year plan

D. Seventh five year plan



 81.The credit of developing the concept of modern economic growth goes to:



A. Arthur Lewis

B. Michael P. Todaro

C. Gunnar Mydral

D. Simon Kuznets



82. countries are the slums of the world Economy.” This statement is by



A. Ragnar Nurkse

B. A.N. Caimcross

C. Colin Clark

D. Jagdish Bhagwati



83.Planning from below’ is known as:

A. Centralized planning

B. Functional planning

C. Decentralized planning

D. Structural planning



84 .When does Unemployment situation develop?

1.decrese in efeective demand

2.constant in effective demand

3.increse in effective demand

4.None



85. An additional investment of SR 50 billion in the Indian economy creates how much

additional income if the marginal propensity to consume (mpc) is equal to 0.5?

A. SR 25 billion;

B. SR 50 billion;

C. SR 100 billion;

D. SR 150 billion.



 86.What's called below area of good's demand curve?

1.marginal utility

2.total utility

3.cunsumer surplus

4.producer surplus



 87.What's called upper area of demand & supply curve?

1.marginal utility

2.total utility

3.producer surplus

4.None



 88.If a producer  is ready to sacrifice 4  unit capital for getting one labour then MRTS(LK) will be...

1.4

2.1/4

3.1/2

4.2



89. On Which parameter is the any economy measured as well being?

1.Nominal GDP

2.Real GDP

3.Both

4.None



90.Which Base is India's GDP rank 6?

1.Nominal

2.Real

3.combination of both

4.None



91.cross elasity is....

1.positive

2.negative

3.constant

4.None



92.which is/are working under financial sector :

1.BANK

2.IRDA

3.PFRDA

4.SEBI

CODE:

A.1,2&3

B.1,2,3&4

C.1&4

D.NONE



93.Downward Demand curve denotes :

1.incresing demand

2.decresing price

3.constant

4.none



94.How many  public sector Bank in India at present?

1.26

2.27

3.19

4.21



95.IF C=20+0.25y,I=10,G=50

Tax=3y than income equilibrium?

1.160

2.250

3.400

4.None



96.capital creation concept was given by

1.kujenets

2.mehata

3.mirdle

4.smith



97.international comparative cost theory related to :

1.smith

2.recardo

3.ohlin

4.None



98. The difference between revenue expenditure and revenue receipts is:

1. Revenue deficit

2. Fiscal deficit

3. Budget deficit

4. Primary deficit



99.The difference between revenue deficit and grants for creation of capital assets is called:

1.Fiscal deficit

2. Budget deficit

3.Effective revenue deficit

4. None



100. The difference between total expenditure and total receipts is:

1. Fiscal deficit

2. Budget deficit

3. Primary deficit

4.Revenue deficit