MCQOPTIONS
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MCQOPTIONS
This section includes 78 Mcqs, each offering curated multiple-choice questions to sharpen your Economics knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
If one person’s consumption of a good diminishes other people’s use of the good, the good is said to be ? |
| A. | rival |
| B. | a good produced by a natural monopoly |
| C. | a common resource |
| D. | excludable |
| Answer» B. a good produced by a natural monopoly | |
| 52. |
If in Pakistan real GDP/person in 2004 is Rs18,073 and real GDP/person is 2005 is Rs18,635 What is the growth rate of real output per person over this period ? |
| A. | 3.1 percent |
| B. | 3.0 percent |
| C. | 18.6 percent |
| D. | 18.0 percent |
| Answer» B. 3.0 percent | |
| 53. |
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 |
| Answer» E. | |
| 54. |
If a person who works in coal mine gets paid more than a person with a similar background and skills who works in a safer job, then ? |
| A. | coal miners must have greater human capital than others |
| B. | we have observed a compensating differential |
| C. | coal miners must be more attractive than other workers |
| D. | we have evidence of discrimination against workers outside the coal mine |
| Answer» C. coal miners must be more attractive than other workers | |
| 55. |
If a person can be prevented from using a good, the good is said to be ? |
| A. | excludable |
| B. | a common resource |
| C. | a public goods |
| D. | rival |
| Answer» B. a common resource | |
| 56. |
Human capital can be described as ? |
| A. | the tools used by workers to enhance productivity |
| B. | a person inherited ability |
| C. | the stock of expertise accumulated by a worker |
| D. | education |
| Answer» D. education | |
| 57. |
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 |
| Answer» B. physical capital/worker | |
| 58. |
Efficiency wages are ____ that raise _____? |
| A. | low wages, employment |
| B. | high wages, labor supply |
| C. | high wages, productivity |
| D. | high wages, employment |
| Answer» D. high wages, employment | |
| 59. |
Economists have hypothesized that the widening gap between the wages of unskilled workers and skilled workers may be due to ? |
| A. | decrease in the demand for unskilled workers because of increases in technology and increases in international trade |
| B. | increase in the number of unskilled workers available due to immigration into the UK. |
| C. | decrease in the demand for unskilled workers are more poorly educated |
| D. | increase in the number of unskilled workers available because workers are more poorly educated |
| Answer» B. increase in the number of unskilled workers available due to immigration into the UK. | |
| 60. |
Different capital intensity in different industries is mainly explained by _______ and ________? |
| A. | wage differentials, skill levels |
| B. | technology, the ease of factor substitution |
| C. | government grants, international competition |
| D. | patents, skill shortages |
| Answer» C. government grants, international competition | |
| 61. |
Copper is an example of ? |
| A. | a renewable natural resource |
| B. | physical capital |
| C. | technology |
| D. | a non-renewable natural resource |
| Answer» E. | |
| 62. |
Competitive markets tend to ? |
| A. | Increase labor market discrimination because some workers can charge more for their services than other workers in a competitive market |
| B. | have no impact on labour market discrimination |
| C. | reduce labour market discrimination because non-discrimination firms will employ cheaper labour earn more profits and drive discriminating firms out o |
| D. | increase labour market discrimination because bigoted employers can charge any price they want in a competitive market to cover the cost of their disc |
| Answer» D. increase labour market discrimination because bigoted employers can charge any price they want in a competitive market to cover the cost of their disc | |
| 63. |
By restricting labor supply a trade union can _____ and _______? |
| A. | increase the wage, increase employment |
| B. | maintain the wage, increase employment |
| C. | increase the wage, lower employment |
| D. | maintain the wage, lower employment |
| Answer» D. maintain the wage, lower employment | |
| 64. |
All of the following would tend to increase a worker’s wage except ? |
| A. | Working the night shift |
| B. | working harder |
| C. | more education |
| D. | having a greater amount of natural ability |
| E. | doing a job that is fun |
| Answer» F. | |
| 65. |
According to the signaling view of the education ? |
| A. | can make any worker into a superstar |
| B. | increases human capital and the wages of workers |
| C. | only helps firms sort workers into high ability and low-ability workers |
| D. | reduces the wage gap between high-skill and low-skill workers. |
| Answer» D. reduces the wage gap between high-skill and low-skill workers. | |
| 66. |
According to the human capital view of education ? |
| A. | has no impact on the human capital of workers? |
| B. | increases human capital and the wages of workers |
| C. | can make any worker into a superstar |
| D. | only helps firms sort workers into high ability and low-ability workers. |
| Answer» C. can make any worker into a superstar | |
| 67. |
A wage differential among groups may not by itself be evidence of discrimination in the labour market because different groups have ? |
| A. | different preferences for the type of work they are willing to do |
| B. | different levels of job experience |
| C. | all of these answers are correct |
| D. | different levels of education |
| Answer» D. different levels of education | |
| 68. |
A reasonable measure of the standard of living in a country is ? |
| A. | real GDP per person |
| B. | nominal GDP per person. |
| C. | Real GDP |
| D. | The growth rate of nominal GDP per person |
| Answer» B. nominal GDP per person. | |
| 69. |
A public good is ? |
| A. | neither rival nor excludable |
| B. | rival but not excludable. |
| C. | both rival but excludable |
| D. | not rival but excludable |
| Answer» B. rival but not excludable. | |
| 70. |
A profit-maximizing firm will hire labour until _____ equals the _______? |
| A. | marginal revenue, marginal cost |
| B. | long run marginal revenue, long run marginal cost |
| C. | labor output ratio, capital output ratio |
| D. | marginal cost of labor, marginal revenue product |
| Answer» E. | |
| 71. |
A private good is ? |
| A. | rival but not excludable |
| B. | not rival but excludable |
| C. | both rival excludable |
| D. | neither rival nor excludable |
| Answer» D. neither rival nor excludable | |
| 72. |
A positive externality affects market efficiency in a manner similar to a ? |
| A. | rival good |
| B. | public good |
| C. | private good |
| D. | common resource |
| Answer» C. private good | |
| 73. |
A person who regularly watches BBC television programs in the UK but fails to pay their TV licence fee is known as ? |
| A. | excess baggage |
| B. | a free rider |
| C. | a costly rider |
| D. | a common resource |
| E. | an unwelcome rider |
| Answer» C. a costly rider | |
| 74. |
A negative externality affect market efficiency in a manner similar to ? |
| A. | an excludable good. |
| B. | a private good |
| C. | a common resource |
| D. | a public good. |
| Answer» D. a public good. | |
| 75. |
A good produced by a natural monopoly is ? |
| A. | rival but not excludable |
| B. | neither rival nor excludable |
| C. | not rival but excludable |
| D. | both rival and excludable |
| Answer» D. both rival and excludable | |
| 76. |
A free rider is a person who ? |
| A. | receives the benefits of a good but avoids paying for it. |
| B. | pays for a good but fails to receive any benefit from the good |
| C. | fails to produce goods but is allowed to consume goods. |
| D. | produces a good but fails to receive payment for the good |
| Answer» B. pays for a good but fails to receive any benefit from the good | |
| 77. |
A congested toll road is ? |
| A. | a good produced by a natural monopoly |
| B. | a private good |
| C. | a public good |
| D. | a common resource |
| Answer» C. a public good | |
| 78. |
A common resource is ? |
| A. | not rival but excludable |
| B. | both rival and excludable |
| C. | rival but not excludable |
| D. | neither rival nor excludable |
| Answer» D. neither rival nor excludable | |