MCQs4All - Economics Collection

EconomicsMCQs for NTS, FPSC, CSS, PPSC, PMS, UTS, FTS, OTS, Economy, Finance, Accounting, MBA, BBA of past papers

Question. To internalize a negative externality an appropriate public policy response would be to ?
  1. have the government take over the production of the good causing the externality
  2. ban the production of all goods creating negative externalities
  3. tax the good
  4. subsidize the good
Question. A government program, social security is ?
  1. Economics assistance provided by social security
  2. Economic assistance to persons who faced unemployment, disability of agedness, financed by assessment of employers and employees
  3. Both a & b
  4. Nor a nor b
Question. A high degree of real wage flexibility will tend to reduce the cost to a country of joining a currency union because ?
  1. All of the reasons given in these answers are correct
  2. real wages fall rapidly in a recession and the economy moves quickly back to long run equilibrium so limiting the duration of the recession even when exchange rate adjustment is not possible
  3. workers will move from a country in which aggregate demand falls to other countries of the currency union, and so unemployment remains lower than it otherwise would
  4. real wages fall and so offset the inflationary effect of switching from the old currency to the new common currency
Question. All of the following are ways that marketing plays a key role in the company’s strategic planning EXCETP ?
  1. marketing provides a guiding philosophy
  2. marketing is the only discipline that can provide a formal structure for the planning effort
  3. marketing provides inputs to strategic planners by helping to identify attractive market opportunities
  4. within individual business units marketing designs strategies for reaching the unit’s objectives
Question. An example of an expansionary monetary policy is ?
  1. a reduction in the taxes banks pay on their profits.
  2. an increase in the required reserve ratio
  3. an increase in the discount rate
  4. the Central bank buying government securities in the open market
Question. The multiplier accelerator model assumes ____ depends on ______?
  1. consumption expected future profits
  2. investment, interest rates
  3. investment expected future profits
  4. stock building interest rates
Question. If the marginal rate of tax is 40% and consumers income increase from Rs10,000 to Rs12,000 ?
  1. The amount of tax paid will increase by Rs4,800
  2. The amount of tax paid will increase by Rs4,000
  3. The amount of tax paid will increase by Rs 800
  4. The total tax paid will be Rs4,800
Question. The Government has reduced the rate of profit on National Saving Schemes primarily for the reason of:
  1. Enhancing the level of saving rate
  2. Discouraging the blockage of money in such schemes
  3. To encourage the investors to invest their capital in active business ventures
  4. To bridge the gap between their profit rate and Bank’s mark up rate on loans
Question. Which of the following market would most closely satisfy the requirements for a competitive market ?
  1. electricity
  2. cable television
  3. cola
  4. milk
  5. All of these answers represent competitive markets
Question. Cost of production plus a fixed rate of profit is called ?
  1. cost plus
  2. Cost effective
  3. End price
  4. Consumer price
Question. An increase in the wage rate ?
  1. Will usually lead to more people employed
  2. Will decrease total earning if the demand for labour is wage elastic
  3. is illegal in a free market
  4. will cause a shift in the demand for labour
Question. GDP would include which of the following ?
  1. the value of taking a day off from work
  2. consulting services
  3. intermediate sales
  4. illegal drug sales
  5. housework
Question. A period of unemployment due to recession will ?
  1. increase a worker’s current income and permanent income
  2. reduce a worker’s current income but not necessarily their permanent income
  3. affect neither the current nor the permanent income of a worker
  4. reduce a worker’s permanent income but not their current income