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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.

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

Review Detailed Answer

Correct Answer: 3.1 percent

Which of the following government policies is least likely to increase likely to increase growth in Africa ?

A increase expenditure on public education

B eliminate civil war

C All of these answers would increase growth

D increase restrictions on the importing of American tractors and electronics

Review Detailed Answer

Correct Answer: increase restrictions on the importing of American tractors and electronics

Our standards of living is most closely related to ?

A how hard we work:

B our supply of capital because everything of value is produced by machinery

C our productivity because our income is equal to what we produce

D our supply of natural resources because they limit production

Review Detailed Answer

Correct Answer: our productivity because our income is equal to what we produce

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

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

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 ?

Which of the following government policies is least likely to increase likely to increase growth in Africa ?

Our standards of living is most closely related to ?

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 ?