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Economics Mcqs 4423 MCQs [All-Courses]

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Economics MCQs cover fundamental concepts of microeconomics and macroeconomics, including demand and supply, inflation, national income, and economic policies.
This section is designed to strengthen analytical skills and conceptual understanding for competitive examinations.
Highly useful for PPSC, FPSC, NTS, OTS, KPPSC, and other testing services preparation.

All Topics  4423

In the long run, expanding educational and training facilities, transportation and communication and other infrastructure in LDCs should increase ?
A productivity paradox
B absorptive capacity
C the residual
D uncertainly
Correct Answer: absorptive capacity
A case when internal economies of scale bring about a continuously falling average cost curve that makes having more than one firm in an industry inefficient is illustrative of ?
A a natural monopoly
B an LDC’s limit of one firm to an industry
C an individual firm facing a horizontal (perfectly elastic) demand curve in LDCs
D The existence of oligopoly
Correct Answer: a natural monopoly
Which of the following is not a nature public monopoly ?
A mobile phone
B electricity
C water supply
D postal service
Correct Answer: mobile phone
Suppose a project results in a net stream of $200 per year for 4 years, but nothing thereafter, Assume that the discount rate is 5 percent. The discounted value of the total income stream over the 4-year period is ?
A 800
B 40,000
C more than zero but less than 800
D less than zero
Correct Answer: 800
he efficiency wage is the ?
A wage costs per unit of output
B wage rate that prevails in LDCs
C Wage rate divided by the productivity of labor
D marginal product of labor divided by wage
Correct Answer: Wage rate divided by the productivity of labor
James Pickett D. J. C. Forsyth, and N. S McBain on the basis of field research in Africa, concluded that business people often want to use the most advanced design without knowing that it may not be the most profitable. They attribute this attitude to ?
A maximum capital absorption
B factor price distortions
C engineering mentality
D intermediate technology
Correct Answer: engineering mentality
Canada France, Germany, Italy, Japan, The United Kingdom and United States are ?
A G-7 countries
B countries with highest productivity growth in the world since 1960
C countries with decreasing TFP growth since 1990s
D countries with the lowest information technology equipment and software index prices
Correct Answer: G-7 countries
When firm build in Organizational slack they do this in order to ?
A cope with unforeseen changes
B maximize growth.
C minimize conflict within the firm
D both options one and three
Correct Answer: both options one and three
Which of the following is NOT a common reason for a merger?
A To increase competition
B To reduce uncertainty
C To achieve faster growth
D To achieve economies of scale
Correct Answer: To increase competition
Identify below those who are not stakeholders in a company ?
A Owners
B Customers
C Employees
D None of the above
Correct Answer: None of the above
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