📊Economics MCQs
Economics MCQs
451 MCQs431
Which of the following does not apply to Pareto efficiency?
📊EconomicsBy: Areesha Khan Pareto efficiency focuses on resource allocation where no one can be made better off wi
AConsumptive efficiency
BProduction efficiency
CAllocative efficiency
DEquity
432
What type of unemployment is directly related to swings in the business cycle?
📊EconomicsBy: Areesha Khan Cyclical unemployment occurs due to economic fluctuations (recession or boom)
ASeasonal
BFrictional
CCyclical
DStructural
433
Which of the following is not a basic assumption of perfect competition?
📊EconomicsBy: Areesha Khan Perfect competition assumes many buyers and sellers
AFree entry and exit
BMany small sellers and buyers
CPerfect information
DHomogeneous product
434
The elasticity of demand for cigarettes by a non-smoker is:
📊EconomicsBy: Areesha Khan The elasticity of demand for cigarettes by a non-smoker is perfectly inelastic; meaning
AUnitary price elastic
BRelatively price inelastic
CPerfectly price elastic
DPerfectly price inelastic
435
Name the country which is the largest producer of Dry Milk in the World is?
ANetherlands
BNorway
CSwitzerland
DPeru
436
Which country produced the most rubber ?
AIndia
BIndonesia
CThailand
DMalaysia
437
The doctrine of comparative advantage states that there are gains from international trade:
📊EconomicsBy: Areesha Khan Comparative advantage suggests that even if a country does not have an absolute advanta
AOnly if both comparative and absolute advantage are present in both countries.
BIf opportunity costs are the same in the countries involved.
COnly if there are economies of scale available.
DIf countries specialize in the production of goods in which they are relatively more efficient.
438
Trade based on absolute advantage was presented by:
📊EconomicsBy: Areesha Khan Adam Smith introduced the theory of absolute advantage
AAlfred Marshall
BAdam Smith
CLionel Robbins
DNone of these
439
According to Keynes, the relationship between money supply and rate of interest is:
📊EconomicsBy: Areesha Khan Keynesian theory suggests that when the money supply increases
ANegative
BPositive
CDirect
DNone of these
440
A country that makes large net income payments to investors in another country is likely to:
📊EconomicsBy: Areesha Khan If a country pays a large portion of income to foreign investors
AHave a large GDP than GNP
BGrow slower economically than the other country
CGrow faster economically than the other country
DHave smaller GDP than GNP