MCQs of Economics – Miscellaneous

If an economy is productively efficient

Economic growth can be shown by:

As resources are shifted from one industry to another this can be shown by:

In a free market the combination of products produced will be determined by:

If an economy moves from producing 10 units of A and 4 units of B to producing 7 As and 5Bs The opportunity cost of the 5th B is:

An economy may operate outside the production possibility Frontier if:

The resources in the economy do not include

The resources in an economy are:

Any combination of products inside the production possibility frontier is:

An outward shift of the production possibility frontier may be caused by:

Which of the following is true?

According the law of diminishing returns:

The law of diminishing returns assumes:

When internal economies of scale occur:

The first level of output at which the long run average cost are minimised is called

The average variable cost curve:

If marginal cost is positive and falling:

Total increases from Rs500 to Rs600 when output increases from 20 to 30 units. Fixed costs are Rs200 Which of the following is true?

Total increase from Rs500 to Rs600 When output increases from 20 to 30 units Fixed costs are Rs200 Which of the following is true?

If marginal product is below average product:

If the marginal revenue is less than the marginal cost then to profit maximise a firm should:

If the price is less than the average costs but higher than the average variable costs:

If firms earn normal profits:

In the long term a firm will produce provided the revenue covers:

In the short term a firm will produce provided the revenue:

The profit per sale is a measure of:

The total costs are Rs2000 and 10 units are produced. The marginal cost of an 11th unit is Rs1300 Which of the following is true?

Total revenue equals:

If marginal revenue equals marginal cost

Price equals:

Barriers to entry:

Which best describes price discrimination?

For a firm operating in two markets and price discriminating the profit maximising condition is:

If the price elasticity of demand for a product in market A is -0.2 and in market B is -3 a price discriminator will charge:

In perfect price discrimination:

A benefit to consumers of price discrimination is that:

In perfect price discrimination:

In Price discrimination abnormal profits are made if:

Barriers to entry:

If the price elasticity is -0.3 this means:

To maximise sales revenue a firm should produce where:

To maximise growth without making a loss a firm should produce the highest output where

Profit is measured by:

When marginal revenue equals marginal cost:

To be allocatively efficient a firm must produce where:

To be Productively efficient a firm must produce where:

Normal profit occurs when:

If the marginal revenue is Positive:

Companies in the private sector are owned by:

An independent assessment of the impact of firm’s activities on society is called a:

An increase in national income is:

Injections:

An increase in national income is likely to:

A significant increase in the government budget deficit is likely to:

If injections are greater than withdrawals

Injections are:

For equilibrium in an open four sector economy:

A deflationary policy could include:

A reflationary policy:

Which of the following is an injection into the economy?

Economic growth can be measured by:

In a boom:

In a recession, GDP:

If labour productivity per week is 200 units and there are 5 employees what is the total output?

Labour Productivity measures:

Potential growth measures:

Economic growth can be seen by an outward shift of:

The socially optimal rate of growth is:

If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the marginal propensity to consume is what?

To anticipate what the economy is going to do next the government will look at:

When an economy first begins to grow more slowly:

If the marginal propensity to consume on domestic products is 0.9 the size of the multiplier is:

An increase in the marginal propensity to consume will:

If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 total consumption is what?

If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the average propensity to consume is what?

As income increase:

An increase in consumption at any given level of income is likely to lead to:

Lower interest rates are likely to:

Friedman’s theory of consumption focuses on:

The marginal propensity to consume is equal to:

An increase in investment is most likely to be caused by:

An outward shift in the Marginal Efficiency of Capital should:

An increase in interest rates:

The accelerator assumes:

Investment depends mainly on:

A profit maximising firm will invest up to the level of investment where:

Investment is:

Investment is a unstable element of aggregate demand because it depends heavily on:

If an increase in investment leads to a bigger increase in national income this called the:

The difference between goes investment and net investment is:

The precautionary demand for money is:

The liquidity trap occurs when the demand for money:

A fall in interest rates is likely to:

According to the quantity theory of money an increase in the money supply is most likely to lead to inflation if:

A reduction in the money supply is likely to:

To reduce the supply of money the government could:

The speculative demand for money occurs when:

An outward shift in the demand for money other things being equals should lead to:

Open Market Operations occur when the government

The total quantity of goods and services produced (or supplied) in an economy in a given period is:

A variable whose value is determined by the model of which it is a part is termed:

In the equation C = a + bY, which describes the aggregate consumption function ‘b’ stands for?

The fraction of change in income that is consumed or spend is called:

Disposable income is the part of households income left after the deduction of:

Keynes suggested that decisions to consume and save were based on:

The marginal propensity to save (MPS) is:

As the MPS increases the multiplier will:

The proportion of an increase in national income paid in tax is:

The marginal propensity to withdraw is:

In macroeconomics, equilibrium is defined as that point at which:

The ratio of change in the equilibrium level of output to a change in some autonomous variable is the:

Assuming there is no government or foreign sector, if the MPC is 8 the multiplier is:

Assuming there is no government or foreign sector, if the multiplier is 2.5 the MPC is:

Assuming there is no government or foreign sector the formula for the multiplier is:

Assume there is no government or foreign setor, If the MPC is 75 a Rs20 million decrease in planned investment will cause aggregate output to decrease by:

According to the paradox of thrift increased efforts to save will cause:

If injections are less than withdrawals at the full-employment level of national income, there is:

The accelerator theory of investment says that induced investment is determined by:

In Which of the business cycle do firms try to cut stocks in order to save costs?

A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work save and invest these economists are:

Which of the following would be considered a supply-side policy?

According to supply-side economists if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest:

According to supply side economists as tax rates are reduced labour supply should increase. This implies that:

According to the Laffer curve as tax rates increase tax revenue

Reaganomics was a radical shift in Policy aimed at direct tackling

New classical economists advocate reducing welfare payments to people who are unemployed or single parents. The economic reasoning uses was that this would:

Privatisation is the transfer out:

The PFI aims to deliver public projects and services using:

Which of the following statements supports deregulation of industries?

A way of helping depressed regions by having lower wages, lower local taxes and lower unemployment benefit has been suggested as:

A way of helping depressed regions by having wage subsidies lower business taxes and capital subsidies has been suggested as: