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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

Unemployment benefits may increase the unemployment rate because unemployment benefits ?
A encourage people to quit their jobs
B reduce the cost of job search
C enable people to quit searching for work
D reduce the benefits of additional job searching
Correct Answer: reduce the cost of job search
If output price is constant, the marginal revenue product of labour curve will have the same shape as the ?
A total variable cost curve
B marginal cost curve
C total product of labour curve
D marginal product of labour curve
Correct Answer: marginal product of labour curve
The marginal revenue product of labour is ?
A the marginal product of capital times the price of labour.
B the additional revenue a firm earns by employing on additional unit of labour
C the additional profit a firms earns by employing one additional unit of labour
D the additional revenue the firm makes by selling one unit of labour.
Correct Answer: the additional revenue the firm makes by selling one unit of labour.
New technology in the form of computer spreadsheets has increased the productivity of accountants. This will cause ?
A the demand curve for accountants to shift to the right, since the productivity of accountants has increased
B firms to move up their demand curves for accountants
C the demand curve for accountants to shift to the left, since it requires fewer accountants than it did before to do the same amount of work.
D firms to move down their demand curves for accountants
Correct Answer: the demand curve for accountants to shift to the right, since the productivity of accountants has increased
As the wage rate per hour increases, the opportunity cost of leisure ?
A remains constant
B increases since the cost of forgoing one hour of work increases
C decreases since the customer now has more income to spend
D may increase of decrease depending on the individual’s preferences.
Correct Answer: increases since the cost of forgoing one hour of work increases
Assuming that leisure is a normal good. if an individual’s labour supply curve is backward bending then the ?
A income effect is zero
B substitution effect outweighs the income effect
C income effect outweighs the substitution effect
D income effect and the substitution effects are equal
Correct Answer: income effect outweighs the substitution effect
Assuming leisure is a normal good, if the income effect is greater than the substitution effect a wage increase ?
A will have no effect on labour supply
B will decreases labour supply
C could cause either an increases or a decrease in labour supply
D will increase labour supply.
Correct Answer: will decreases labour supply
Constrained choice is relevant for households ?
A making spending decision but not labour-supply decision.
B making both spending and labour-supply decisions
C considered to be ‘poor’ but not for those who are considered to be ‘rich’
D making labour-supply decisions but not spending decisions.
Correct Answer: making both spending and labour-supply decisions
The greatest advantage of a negative income tax is that it ?
A generates a smaller disincentive to work than most alternative anti-poverty policies.
B reduces the cost to the government of fighting poverty
C would not provide benefits to lazy people
D ensures that the poor actually receive what the government thinks they need does all these answers.
Correct Answer: generates a smaller disincentive to work than most alternative anti-poverty policies.
An increase in the minimum wage will cause a relatively large increase in unemployment among ?
A unskilled workers if the demand for labour is relatively inelastic
B unskilled workers if the demand for labour is relatively elastic
C skilled workers if the demand for labour is relatively elastic
D skilled workers if the demand for labour is relatively inelastic
Correct Answer: unskilled workers if the demand for labour is relatively elastic
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