Home Economics Lecturer Economics Application of Economics, Income Inequality, Migration and Urbanization, Human Capital, Excange Rate Adjustment and Meaning and Measurement MCQs

Application of Economics, Income Inequality, Migration and Urbanization, Human Capital, Excange Rate Adjustment and Meaning and Measurement MCQs

1 - Which one of the following is the largest sector of Pakistan's economy ?

Agriculture

2 - Which one is the main source of foreign exchange earning ?

agriculture

3 - Total population of livestock in Pakistan is ?

122.6 million

4 - How much of the total area is cultivated in Pakistan ?

0.25

5 - What is the annual average growth rate of agriculture in last decade ?

0.045

6 - In the Mid of 2011 the share of agriculture in employment is ?

0.45

7 - The total land area of Baluchistan is 34.7 mha (or 85.74 million acres), out of which only ____ are cultivated?

14 % or 3.4 mha

8 - Out of the total land area of Pakistan the total land area of Punjab is 20.6 mha (about 50.90 million acres) out of which ____ are cultivated?

54 % or 11.04 mha

9 - Agriculture contributes about ________ to the GDP?

0.25

10 - What is the annual average growth rate of agriculture in last decade ?

0.045

11 - _________ is the backbone of the Pakistan economy and the mainstay of our national economic life?

Agriculture

12 - If as the quantity produced increase a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will ?

be U-shaped.

13 - When marginal costs are below average total costs ?

average total cost is falling

14 - Which of the following statements is true ?

All costs are variable in the long run

15 - If a production function exhibits diminishing marginal product. its slope ?

becomes flatter as the quantity of the input increase

16 - Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment:

Rs30,000

17 - Economic profit is equal to total revenue minus ?

implicit costs

18 - The efficient scale of production is the quantity of output that minimizes ?

average total cost

19 - In the long run, if a very small factory were to expand its scale of operations it is likely that it would initially experience ?

economies of scale

20 - If marginal costs equal average total costs ?

average total cost is minimized

21 - Which of the following is a variable cost in the short run ?

wages paid to factory labor

22 - If a production function exhibits diminishing marginal product the slope of the corresponding total-cost curve ?

becomes steeper as the quantity of output increases

23 - If there are implicit costs of production ?

accounting profit will exceed economic profit

24 - Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment:

Rs75,000

25 - Accounting profit is equal to total revenue minus ?

explicit costs.

26 - Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist resp

Disagree because they have different scientific judgments

27 - Which of the following issues is related to microeconomics ?

the impact of oil prices on car production

28 - Positive statements are ?

statements of description that can be tested

29 - Which of the following statements is normative ?

The unemployment rate should be lower

30 - Which of the following will not shift a country's production possibilities frontier outward ?

a reduction in unemployment

31 - Which of the following statements about microeconomics and macroeconomics is not true ?

The study of very large industries is a topic within macroeconomics

32 - Suppose two economists are arguing about policies that deal with unemployment One economist says the government should fight unemployment because it is the greatest social evil The other economist response Nonsense Inflation is the greatest social evil Th

disagree because they have different values.

33 - In making which of the following statements is an economist acting more like a scientist ?

A reduction in unemployment benefits will reduce the unemployment benefits will reduce the unemployment rate.

34 - Economic growth is depicted by ?

a shift in the production possibilities frontier outward.

35 - Points on the production possibilities frontier are ?

efficient

36 - Which of the following is not a factor of production ?

money

37 - Which of the following is most likely to produce scientific evidence about a theory ?

An economist permanently employed at a leading university analyzing the impact of bank regulations on lending to small businesses

38 - In which of the following cases is the assumption most reasonable ?

To model the benefits of trade. an economist assumes that there are two people and two goods

39 - Economic models are ?

built with assumptions.

40 - Which of the following statements regarding the circular-flow diagram is true ?

The factors of production are owned by households

41 - The scientific method requires that ?

the scientist be objective

42 - The Benazir Benefit income Scheme is a good example of ?

a benefit in kind.

43 - VAT is a good example of which kind of tax ?

Ad valorem

44 - Where a tax can be shifted the incidence depends on ?

elasticities of demand and supply

45 - Tax incidence is the ?

ultimate distribution of a tax's burden

46 - A progressive income tax means that those with a higher income pay ?

a higher percentage of their income in taxes then low income people

47 - The marginal tax rate is ?

the tax rate you pay on any additional income that you earn.

48 - Vertical equity holds that ?

those with greater ability to pay should pay more

49 - A Gini coefficient of zero means that the ?

all the income is received by the top 20% of the income distribution

50 - Supply of land in a given use ?

will be upward sloping because as land becomes more valuable in once use, the amount of land made available for that use will increase

51 - The stock of knowledge, skills and talents that people possess is called ?

human capital

52 - Unemployment benefits may increase the unemployment rate because unemployment benefits ?

reduce the cost of job search

53 - If output price is constant, the marginal revenue product of labour curve will have the same shape as the ?

marginal product of labour curve

54 - The marginal revenue product of labour is ?

the additional revenue the firm makes by selling one unit of labour.

55 - New technology in the form of computer spreadsheets has increased the productivity of accountants. This will cause ?

the demand curve for accountants to shift to the right, since the productivity of accountants has increased

56 - As the wage rate per hour increases, the opportunity cost of leisure ?

increases since the cost of forgoing one hour of work increases

57 - Assuming that leisure is a normal good. if an individual's labour supply curve is backward bending then the ?

income effect outweighs the substitution effect

58 - Assuming leisure is a normal good, if the income effect is greater than the substitution effect a wage increase ?

will decreases labour supply

59 - Constrained choice is relevant for households ?

making both spending and labour-supply decisions

60 - The greatest advantage of a negative income tax is that it ?

generates a smaller disincentive to work than most alternative anti-poverty policies.

61 - An increase in the minimum wage will cause a relatively large increase in unemployment among ?

unskilled workers if the demand for labour is relatively elastic

62 - Rawls's suggestion that policy should be directed at maximizing the welfare of the least well off person in society is derived from ?

the idea that people should consider policy as if behind a veil of ignorance as to what their circumstances might be in society, and the idea that people will then be particularly concerned about the possibility that they might find themselves at the bott

63 - Rank utilitarianism liberalism, and libertarianism in sequence from the political philosophy that would redistribute income the greatest to the one that would redistribute income the least?

libertariansim, utilitarianism, libertarianism

64 - Mariam earns more than Seamus and she came by her income fairly and honestly which of the following political philosophies would argue against the redistribution of income from Mariam to Seamus ?

libertarianism

65 - Because people's income vary other the life cycle and because there are transitory shocks to people's incomes the standard measures of income distribution ?

exaggerate the inequality of living standards

66 - Permanent income is ?

a person's normal or average income

67 - In Pakistan the term the poverty trap is used to describe the fact that ?

if poor people earn more their benefits fall, making them no better off.

68 - Housing Benefit is a good example of ?

a means tested cash benefit

69 - An example of an indirect tax is ?

VAT

70 - Tax shifting ?

occurs when households can alter their behaviour and do something to avoid paying tax

71 - A tax whose burden expressed as a percentage of income, falls as income increases is a ?

regressive tax

72 - A tax whose burden is the same proportion of income for all households is ?

a proportional tax

73 - The total amount of tax you pay divided by your total income is the ?

total tax rate

74 - Horizontal equity holds that ?

those with equal ability to pay should bear equal tax burdens.

75 - A Gini coefficient of one means that ?

one family has all the income and every one else has nothing.

76 - The Gini coefficient is ?

the ratio of the percentage of total income received by the top 20% of families to the percentage of total income received by by the bottom 20% of families

77 - The term ‘rent' as it is used by economists. refers to ?

the return to any factor of production that is in fixed supply

78 - If labour market discrimination crowds women into a limited number of occupations so that the number of occupations available to men increases, then ?

both the wages and the marginal productivity of men will be higher than they otherwise would be

79 - An unemployed salesperson has been offered a job paying Rs500 a week. He turns that job down and continues to search for another job that pays more. The cost of this continued search is ?

The Rs500 weekly salary that he has forgone and the monetary costs incurred by continuing to search

80 - The formula for the marginal revenue product of labour (L is for labour, X is the product) is ?

PX/MPL

81 - In a competitive labour market firms will hire labour up to the point where the marginal revenue product of labour equals ?

the marginal product

82 - Differences in wages that result from differences in working conditions are known as ?

compensating differentials

83 - If the income effect is smaller than the substitution effect, higher net wages will ?

increase the supply of labour

84 - The substitution effect of higher wages suggests that as the wage rate increases ?

leisure becomes more expensive and households buy less of it

85 - The idea that the demand for car workers stems from the demand for cars is ?

derived demand

86 - The poverty trap refers to ?

a situation in which those receiving state benefits may be almost no better off if they choose to work more to earn more because doing so will reduce the amount of benefit income to which they are entitled and increase the amount to tax

87 - Current anti-poverty programs discourage work because ?

benefits are reduced at such a high rate when recipients earn more income that there is little or no incentive to work once one is receiving benefits.

88 - Rawls's miximin criterion does not mean that there should be redistribution so as to equalise everyone's incomes in society because ?

Such redistribution would remove the incentive to work hard, so society's total income would fall, and so the least well off person would be worse off than they could be under a system in which there was some inequality income.

89 - Utilitarianism suggests that the government should choose policies that maximize the total utility of everyone in society by ?

redistributing income from rich to poor because due to the diminishing marginal utility of income, taking a pound from the rich reduces their utility by less than the gain in utility generated by giving a pound to the poor

90 - The maximin criterion suggested by Rawls's theory of justice means that the government should aim to ?

Maximize the well-being of the worst-off person in society

91 - If people can borrow and lend to perfectly smooth out their lifetime living standards, then ?

permanent income is a good measure of the distribution of living standards.

92 - A period of unemployment due to recession will ?

reduce a worker's current income but not necessarily their permanent income

93 - Because in-kind transfers are not accounted for in standard measures of income distribution the standard measures of income distribution ?

exaggerate the inequality of living standards

94 - The Keynesian remedy for unemployment is to ?

decrease private consumption and investment

95 - Which of the following is not TRUE about rural urban migration ?

In Latin America natural population increase is the major source of urban growth

96 - The theoretical basis for zero marginal productivity of labor was the concept of ?

limited technical sustainability of factors

97 - The invisibly underemployed ?

result from an inadequate use of workers capacities

98 - Which of the following is not TRUE about unemployed in LDCs ?

World-wide there are fewer unemployed females than males, but the rate is higher for women

99 - The openly unemployed in LDCs are usually from all of the following except ?

from the poorest 1/5 of the population

100 - Which of the following is not capita good ?

consumers goods

101 - Entrepreneurship is the ?

resource coordinating other productive resources

102 - The emigration of highly-skilled people from the developing countries is known as ?

The brain drain

103 - Simon S.Kuznets argues that the major stock of an economically advanced country is not its physical capital but ?

body of knowledge

104 - Which of the following is Not True about education in LDCs ?

Economists unanimously agree that LDCs should put greater priority on primary education

105 - Which of the following is NOT true about child mortality ?

World-wide child mortality rates increased from 1990 to 2002

106 - Of the 57 million people dying worldwide in 2002, _____ were from stroke and heart disease and ________ from cancer disproportionately from DCs?

17 million, 7 million

107 - Gunnar Myrdal argues that a major barrier to high labor productivity is ?

a class system in which the elite are contemptuous of manual work

108 - In a competitive economy, a worker earns an income equivalent to ?

Marginal Product

109 - By 2010 the U.S Census Bureau expects life expectancy in the tow southern African countries of Botswana and South Africa to be ?

30 to 40 years, a fall of more than 10 years from 1995

110 - Which of the following is not true ?

Life expectancy in Africa increased steadily from 1994 to 2003 due to better health care

111 - Labor productivity is higher in DCs such as Japan and Germany than LDCs due to ?

Both a and b are correct

112 - Empirical evidence regarding in the effects of currency depreciation on the balance of trade indicates that?

no strong generalization is possible

113 - The analysis considers the ability of domestic and foreign price of adjust to devaluation in the short run ?

pass through

114 - The shorter the ______ pass through period the ______ the desirable BOT effects of evaluation on quantities traded will appear ?

sooner

115 - Suppose that the United Kingdom devalues the pound if both exports and imports are written in terms of pounds then the United Kingdom balance of trade during a currency contract period ?

is unaffected

116 - If export contracts are written in terms of foreign currency and import contracts are denominated in domestic currency a depreciation of the dollar during the currency contract period ?

All of the above

117 - Complete currency pass through arises when a 10 percent depreciation in the value of the dollar causes U.S?

import prices to rise by 10 percent

118 - Given a two-country world, suppose Japan devalues the yen by 20 percent and west German devalues the mark by 15 percent This result is a (an)?

depreciation in the value of the yen against the mark

119 - If foreign manufacturing costs and profit margins in response to a depreciation in the U.S dollar the effect of these actions is to ?

lengthen the amount of time in which the depreciation leads to smaller trade deficit

120 - Because of the J curve effect and partial currency pass through, a depreciation of the domestic currency tends to increase the size of a ?

trade deficit in the long run

121 - According to the Marshall-Lerner condition if a country's currency depreciates its trade balance will worsen if ?

elasticity of demand for exports = 0.3; elasticity of demand for imports = 0.6

122 - The balance of trade can only worsen if income ____ relative to absorption ?

decreases

123 - The analysis considers the ability of domestic and foreign price of adjust to devaluation in the short run ?

pass through

124 - The notion that, following a currency depreciation the balance of trade falls for a while before increasing is called an effect ?

J Curve

125 - Which approach predicts that is an economy operates a full employment and faces trade deficit currency devaluation will improve the trade balance only if domestic spending is cut thus freeing resources to produce exports ?

the absorption approaches

126 - The extent to which a change in the exchange rate leads to changes in import and export prices is known as the ?

pass through effect

127 - The shift toward imperfectly competitive markets in domestic and international trade the concept of ?

complete currency pass through

128 - Economic theory predicts that a currency depreciation will least lead to an improvement in the home country's trade balance when ?

home demand for imports is inelastic and foreign export demand is inelastic

129 - Suppose that U.S dollar depreciates 70 percent against the yen yet Japanese export prices to Americans did not decrease by the full extent of the dollar depreciation. This is best explained by ?

partial currency pass through

130 - To maintain its economic position, Japan has often limited the number of cars or the quantity of farm products that the United States can sell in Japan Japan has imposed these limits to develop ?

a favorable balance of trade

131 - One principle in the theory of mercantilism is that colonies should be_____________?

acquired as markets and sources of raw materials

132 - During the 1980s and 1990s the economic policies of China, supported by Deng Xiaoping have led directly to______________??

an increase in trade with the West

133 - Which factor best accounts for the existence of cash-crop production as a major form of agriculture i many central American nations today ?

demand of world markets for such crops

134 - In recent years, which factor has been major reason for the economic tensions between the United States and China ?

The United States imported more from China than it exported to China

135 - Which situation has contributed most recent Japanese economic growth ?

The Japanese government and Japanese businesses have cooperated with each other

136 - A comparison of Japan's policies before 1945 with the policies in effect after 1945 indicates that______________?

territorial aggression is not necessary to secure national economic goals

137 - Throughout the 1800's Russia was interested in acquiring Turkey mainly because Russia wanted ?

access to the Mediterranean Sea

138 - Which condition is a major obstacle to economic development in the Middle East and Northern Africa ?

scarcity of water resources

139 - What was the third buffalo producing country ?

China

140 - Cucumbers are almost how old ?

4000 years

141 - Wisconsin in the US leading distributor in what producer ?

cabbage

142 - Which fruit is an offspring of the pummel ?

Grapefruit

143 - Which of the following is not a Cash Crop ?

Wheat

144 - Which is not a type of mushroom ?

Bugouy

145 - Wheat being a plant of temperate zone grows well on plains away from sea and having moderately dry climate World's maximum production of wheat is obtained from ?

China

146 - Which of the following countries is known as sugar bowl ?

Cuba

147 - What country had the largest area of forest ?

United States

148 - Which country produced the second most rubber ?

Indonesia

149 - The crop most susceptible to frost is_______________?

Wheat

150 - What was the third mild producing country ?

Germany

151 - What was the top milk producing country ?

United States

152 - Brassical in the Latin name for what spice ?

mustard

153 - Groundnut crop is the monopoly of ____________?

India

154 - Loas Ginger is otherwise known as_______________?

Galangal

155 - What was the top timber producing country ?

Brazil

156 - Which country leads in production of barley among the following ?

Canada

157 - What is the second sheep producing country ?

Australia

158 - What is the second cattle producing country ?

China

159 - The impact of industrialization in India is most conspicuously reflected in ?

the increasing rate of growth in urban population

160 - The relative deprivation approach attempts to______________?

assess the deprivation of section of population as compared to the others

161 - Which one of the following is the best criterion of contrast between a rural and urban community ?

Specific size of population

162 - Demography is the social science of ?

population

163 - Which is not a characteristic of urban life ?

informal relationship

164 - The degree of urbanisation of any given community is indicated by its?

All of the above

165 - Which is the biggest seaport of the world ?

Singapore seaport

166 - The extent to which the results of a study can be generalized to the larger population refers to ?

external validity

167 - Which of the following countries lead in the production of Nickel ?

Canada

168 - Continent of South America covers ___ of the total land of earth ?

0.118

169 - Which of the following countries leads in the production of gold in the world ?

China

170 - What is the currency of Western Sahara ?

Dollar

171 - With which of the following items is Kimberley associated ?

Diamonds

172 - India is the world's largest producer of ?

Mica

173 - The leading producer of silver is ?

Mexico

174 - Copper may be found native that is in its pure state but is more often found in chemical combinations with ?

All of the above minerals

175 - Higher summer temperature stiff soil capable of supporting heavy weight of plant is essential for ?

Rice

176 - Coffee requires hot and moist climate and grows best on slopes which of the following countries is leading in coffee production ?

Brazil

177 - Which of the following is a kharif crop ?

Rice

178 - Which soil is best suited for deep rooted crops ?

Black soil

179 - The highest population growth rate in the world is ?

Bangladesh

180 - Which of the following countries lead in the production of Nickel in the world ?

Canada

181 - Which of the following countries lead in the production of sugarcane in the world ?

Brazil

182 - Which of the following countries leads in the production of sugar in the world ?

India

183 - The world's largest oil refinery of the world is located at ?

Abadan (Iran)

184 - Which of the following countries is the largest producer of coal in the world ?

China

185 - The largest producer of silk in the world is ?

Japan

186 - Which of the following countries is the leading producer of rice in the world ?

China

187 - Malnutrition is one of the main reasons behind the high mortality rates among ?

both a & b

188 - What is the total population of Nauru ?

1900

189 - Which country produced the third most rubber ?

Malaysia

190 - What kind of soil is treated with gypsum to make it suitable for cropping ?

Alkaline

191 - In which of crops Russia does not lead ?

Sugarcane

192 - What country produces the original Edam cheese ?

Netherlands

193 - Name the country which is the largest producer of Dry Milk in the World is?

Peru

194 - Which country produced the most rubber ?

India

195 - What was the second milk producing country ?

Russia

196 - The largest fishing catching ground in the world is ?

North West Pacific Ocean

197 - How much of the total population of the world is living in Asia ?

0.586

198 - Which country is the biggest producer of wool in the world ?

Australia

199 - Among the world's largest cotton growing countries. Pakistan stands at number ?

Four

200 - Brassica is the Latin name for what spice ?

Mustard

201 - What country is the second most covered by forests ?

Solomon Islands

202 - Groundnut crop is the monopoly of ?

India

203 - What country is the most covered by forests ?

Surinam

204 - What was the third chicken producing country ?

Indonesia

205 - Tobacco, a product of high commercial value these days and which grows under a wide range of climates is a major plantation of ?

USA

206 - What country had the second largest area of forest?

Russia

207 - Coffee requires hot and moist climate and grows best on slopes which of the following countries is leading in coffee production?

Brazil

208 - Which of the following countries has highest percentage of land under cultivation ?

China

209 - What was the top chicken producing country ?

China

210 - What was the second sheep producing country ?

Australia

211 - What was the third cattle producing country ?

United States

212 - What was the top cattle producing country ?

India

213 - The largest producer of coffee in the world is ?

Brazil

214 - Besides tobacco, tea and cotton, which is the other agricultural produce of China ?

Rice

215 - Which of the following crops is/are Cash Crop ?

All of above

216 - Of all the animal pests that attack plants. the most common and which cause the maximum damage are ?

Insects

217 - Which is the most important crop of the Nile delta ?

Cotton

218 - The largest producer of Natural gas in the world is _____?

Tanzania

219 - Which country leads in production of barley among the following ?

Canada

220 - Which of the following iron has got the highest carbon content ?

Cast Iron

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