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Economics Mcqs 4423 MCQs [All-Courses]

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.

Which of the following best describes the rate of growth in productivity in the United states over the last fifty years ?

A Productivity growth has been steady over the last 50 years

B Productivity has been growing more slowly every decade since world War II

C Productivity grew quickly in the 1950s and 1960s more slowly from the early 1970s through 1995 and then quickly again

D Productivity grew slowly from the 1950s through the 1970s and then began to accelerate probably due to advances in computer technology

Review Detailed Answer

Correct Answer: Productivity grew quickly in the 1950s and 1960s more slowly from the early 1970s through 1995 and then quickly again

Which of the following statements regarding the impact of population growth on productivity is true ?

A There is no evidence, yet that rapid population growth stretches natural resources to the point that it limits growth in productivity

B All of these answers

C Rapid population growth may dilute the capital stock lowering productivity

D Rapid population growth may promote technological progress increasing productivity.

Review Detailed Answer

Correct Answer: All of these answers

If a production function exhibits constant returns to scale ?

A doubling all of the inputs more than doubles output due to the catch-up effect

B doubling all of the inputs has absolutely no impact on output because output is constant

C doubling all of the inputs less than doubles output due to diminishing returns

D doubling all of the input’s doubles output

Review Detailed Answer

Correct Answer: doubling all of the input’s doubles output

For a given level of technology, we should expect an increase in productivity within a nation when there is an increase in each of the following except ?

A labor

B physical capital/worker

C human capital/worker

D natural resources/worker

Review Detailed Answer

Correct Answer: labor

Once a country is wealthy ?

A it no longer needs any human capital

B capital becomes more productive due to the “catch-up- effect”

C none of these answers

D it may be harder for it to grow quickly because of the diminishing returns to capital

Review Detailed Answer

Correct Answer: it may be harder for it to grow quickly because of the diminishing returns to capital

Many East Asian countries are growing very quickly because ?

A They save and invest an unusually high percentage of their GDP

B They have always been wealthy and will continue to be wealthy, which is known as the “snowball effect”

C They are imperialists and have collected wealth from previous victories in war

D They have enormous natural resources.

Review Detailed Answer

Correct Answer: They save and invest an unusually high percentage of their GDP

To increase growth, governments should do all of the following except ?

A encourage foreigners to investment in your country

B encourage saving and investment

C nationalize major industries

D encourage research and development

Review Detailed Answer

Correct Answer: nationalize major industries

Which of the following expenditures to enhance productivity is most likely to emit a positive externality ?

A Megabank buys a new computer

B Naila pays her university tuition fees.

C OGDC leases a new oil field

D Indus Motors buys a new drill press

Review Detailed Answer

Correct Answer: Naila pays her university tuition fees.

If Toyota builds a new plant in the north of England ?

A None of these answers

B There has been an increase in foreign portfolio investment in the UK

C Once the plant starts producing cars UK GDP will rise less than UK GNP

D once the plant starts producing cars UK GDP will rise more than UK GNP

Review Detailed Answer

Correct Answer: once the plant starts producing cars UK GDP will rise more than UK GNP

Which of the following is an example of foreign portfolio investment ?

A Toyota builds a new plant in the north of England

B EDF of France buys shares in Scottish & Southern Energy of the UK, and Scottish & Southern Energy uses the Proceeds to build a new hydro-electric power station in Scotland

C Deutsche Bank of Germany buys some new software from UK Supplier

D JCB builds a new plant near Manchester

Review Detailed Answer

Correct Answer: EDF of France buys shares in Scottish & Southern Energy of the UK, and Scottish & Southern Energy uses the Proceeds to build a new hydro-electric power station in Scotland

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Economics Mcqs 4423 MCQs [All-Courses]

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All Topics 4423

Which of the following best describes the rate of growth in productivity in the United states over the last fifty years ?

Which of the following statements regarding the impact of population growth on productivity is true ?

If a production function exhibits constant returns to scale ?

For a given level of technology, we should expect an increase in productivity within a nation when there is an increase in each of the following except ?

Once a country is wealthy ?

Many East Asian countries are growing very quickly because ?

To increase growth, governments should do all of the following except ?

Which of the following expenditures to enhance productivity is most likely to emit a positive externality ?

If Toyota builds a new plant in the north of England ?

Which of the following is an example of foreign portfolio investment ?