Economics Multiple Choice Questions (MCQ)
1- Productive efficiency of a competitive firm implies:
(A) normal profit for the firm
(B) minimum average cost
(C) maximum producer’s surplus
(D) maximum consumer’s surplus
2- Non-linear pricing by a Monopolist is known as:
(A) Peak load pricing
(B) Third degree price discrimination
(C) Second degree price discrimination
(D) First degree price discrimination
3- At the maximum point of the total revenue curve under monopoly, the price elasticity of demand is:
(A) 0
(B) 1
(C) ˃1
(D) ˂1
4- Which of following is NOT common between expenditure method and output method of estimating national income?
(A) Expenditure on raw materials
(B) Value Added Tax
(C) Subsidy
(D) Sales Tax
5- For an effective way of day-to-day control of the money supply, the central bank uses:
(A) Credit rationing
(B) Open market operations
(C) Reserve ratio
(D) Discount window
6- Current account of country’s balance of payments equals:
(A) net lending to foreigners
(B) investment returns from abroad
(C) all transfers to foreigners
(D) sum of exports and imports
7- If the exchange rate of domestic currency falls below the equilibrium point, then:
(A) the return on foreign currency deposits increases
(B) the returns on foreign currency deposits remains the same
(C) the return on domestic currency deposits increases
(D) the return on domestic currency deposit falls
8- Alfred Marshall is credited with the discovery of:
(A) Scientific measurement of welfare
(B) Marginal principles
(C) Cannons of taxation
(D) Surplus value
9- The distinction between inside and outside money was brought about by:
(A) Keynes
(B) Friedman
(C) Gurley and Shaw
(D) Patinkin
10- Which of the following is classified as non-random sampling?
(A) Quota sampling
(B) Stratified sampling
(C) Systematic sampling
(D) Cluster sampling
ANSWERS:
1-(B), 2-(C), 3-(B), 4-(A), 5-(B), 6-(A), 7-(A), 8-(B), 9-(C), 10-(A)