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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

Guest worker programs usually result in temporary migration of workers from ?
A impoverished countries to impoverished countries
B impoverished countries to wealthy countries
C wealthy countries to wealthy countries
D wealthy countries to impoverished countries
Correct Answer: impoverished countries to wealthy countries
The migrations of electricians from low-paying nations to high-paying nations is most likely to be challenged by ?
A electrician unions in the high-paying nations
B electrician unions in the low paying nations
C electrician employers in the high-paying nations
D electricians who stay in the low paying nations
Correct Answer: electrician unions in the high-paying nations
The migration of employable workers from low-paying nations to high-paying nations will ?
A decrease wage rates in the low-paying nations
B decrease productivity and real output in the world
C increase business or capitalist incomes in the high-paying nations
D increase business or capitalist incomes in the low-paying nations
Correct Answer: increase business or capitalist incomes in the high-paying nations
International joint ventures can lead to welfare losses when the newly established firm ?
A adds to the pre-existing productive capacity
B enters markets neither parent could have entered individually
C yields cost reductions unavailable to parent firms
D gives rise to increased amounts of market power
Correct Answer: gives rise to increased amounts of market power
Accusations of American labor unions against U.S multinational firms include all of the following except ?
A enjoy unfair advantage in taxation
B export jobs by shifting technology overseas
C export jobs by shifting investment overseas
D operating at output levels where scale economies occur
Correct Answer: operating at output levels where scale economies occur
Multinational corporations face problems since they ?
A cannot benefit from the advantage of comparative advantage
B may raise political problems in countries where their subsidiaries operate
C can only invest at home but not overseas
D can only invest overseas but not at home
Correct Answer: may raise political problems in countries where their subsidiaries operate
Multinational corporations ?
A increase the transfer of technology between nations
B make it harder to nations to foster activities of comparative advantage
C always enjoy political harmony in nations where their subsidiaries operate
D require governmental subsidies in order to conduct worldwide operations
Correct Answer: increase the transfer of technology between nations
All of the following are potential advantages of an international joint venture except ?
A sharing research and development cost among corporations
B forestalling protectionism against imports
C establishing work rules promoting higher labor productivity
D operating at diseconomy-of-scale output levels
Correct Answer: operating at diseconomy-of-scale output levels
Which of the following is not an example of foreign direct investment ?
A the construction of a new auto assembly plant overseas
B the acquisition of an existing steel mill overseas
C the purchase of bonds or stock issued by a textile company overseas
D the creation of a wholly owned business firm overseas
Correct Answer: the purchase of bonds or stock issued by a textile company overseas
________ refers to the price charged for products sold to a subsidiary to a multinational corporation b another subsidiary in another country?
A marginal cost pricing
B full cost pricing
C price discrimination
D transfer pricing
Correct Answer: transfer pricing
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