Economics Quiz 4

1 / 50

The favorable evaluation of presidents is based on______________?

the teflon principle

dynamic political leadership

strict adherence to the written Constitution

the caretaker role

2 / 50

The value of the marginal product of labor is ?

the wage of labor times the quantity of labor

the price of the output times wage of labor

none of these answers

the price of the output times the marginal product of labor

3 / 50

Which of the following reduces risk in a portfolio the greatest ?

Increasing the number of shares in the portfolio from 1 to 10

All of these answers provide the same amount of risk reduction

Increasing the number of shares from 10 to 20

Increasing the number of shares from 20 to 30

4 / 50

Group marriage ________________?

is practiced among Australian aborigines

has been a consistent feature in Western societies

is widespread in several societies

has never been consistently or extensively practiced

5 / 50

An adjustment is made in wages that corresponds with the change in the cost of living. What this adjustment is called ?

Cost effective adjustment

Cost of living adjustment

Free adjustment

Comparative adjustment

6 / 50

An increase in price all other things unchanged leads to ?

A shift in supply outwards

A shift in supply inwards

An extension of supply

A contraction of supply

7 / 50

Price increases from 10 to 12 pence and the price elasticity of demand is -0.5 The quantity demanded was 500 units. What will it be now ?

450 units

490 units

550 units

500 units

8 / 50

Fundamentalists want the IMF to lend to crisis-stricken countries on condition that they undertake fundamental structural reforms in banking Joseph Stiglitz however thinks it is______________?

crucial that the IMF intervene in the reform of fiscal policy of the country and not the monetary policy

None of the statements above is correct

impractical for the IMF to loan short term as reforms can only be effective in the middle to long run

unrealistic for IMF to intervene in the financial markets of poor countries during the crisis

9 / 50

Gross National Product equals ?

Gross Domestic Product adjusted for inflation

Gross Domestic Product plus net property income from abroad

Net National Product adjusted for inflation

Net National Product plus net property income from abroad

10 / 50

If the central bank buys financial securities in the open market to increase the monetary base, this is and example of ?

Financial regulation

financial intermediation

Open Market operations

lender of less resort

11 / 50

In a cartel ?

Firms use price to win market share from competitors

Firms collude

Price wars are common

Firms compete against each other

12 / 50

The refinancing rate is ?

The interest rates the European Central Bank charges on loans to banks

The interest rate the European Central Bank pays on reserves

The interest rate at Which commercial banks lend to and borrow from each other

The interest rates the public pays when borrowing from banks

13 / 50

The first European people to form a nation were is________________?

Scots

English

Slavs

Picts

14 / 50

What is Debt Service ?

none of these

Interest payments on external debts

repayments of external debt

Both of them

15 / 50

Which of the following is not considered a transaction cost incurred by parties in the process of contracting to eliminate a pollution externality ?

costs incurred to enforce the agreement

costs incurred to reduce the pollution

costs incurred due to a large number of parties affected by the externality

costs incurred due to lawyers? fees

16 / 50

New classical economists advocate reducing welfare payments to people who are unemployed or single parents. The economic reasoning uses was that this would ?

reduce unemployment

weaken the power of trade unions

reduce poverty

help small businesses

17 / 50

A change in the relative prices of which of the following pair of goods would likely cause the smallest substitution effect ?

right shoes and left shoes

kit-Kat chocolate snacks and Twix chocolate snacks

petrol from BP and petrol from shell

coke and Pepsi

18 / 50

Markus is a travelling salesman for an apparel company. In this employment relationship, Markus is the ?

agent

principle

signaler

screener

19 / 50

Enacting legislation__________________?

involves negotiation and compromise

sometimes pits the executive branch against the interests of the members of states and districts

all of the above

is a slow and painful process

20 / 50

The density of population in K.P.K is ?

235 per sq. Km

196 per sq. Km

270 per sq. Km

291 per sq. Km

21 / 50

Estimated value that is added to a product or material to each stage, of its manufacture or distribution, is known as ?

Excise

Tax on stage

Value addition

Value added

22 / 50

Since state and nation are not the same thing the preferred term for individual political entities is_______________?

dominions

principalities

nation-sates or national states

territories

23 / 50

If price consumption curve will be horizontal on x-axes then elasticity of demand will be:___________?

Greater than 1

Less than 1

Equal to 1

Equal to 0

24 / 50

Which of the following statements regarding the loanable funds market is not true ?

An increase in a country?s net capital outflow shifts the supply of loanable funds to the left

A decrease in a country?s net capital outflow shifts the demand for loanable funds to the left

An increase in a country?s net capital outflow raises its real interest rate

An increase in domestic investment shifts the demand for loanable funds to the right

25 / 50

In economic terms incomes are distributed according to________________?

which skills one has

innate talent

whom one knows

a person?s marginal productivity

26 / 50

A profit maximizing firm is perfect competition produces where ?

Marginal revenue equals zero

Marginal revenue equals marginal cost

Total revenue is maximized

Marginal revenue equals average cost

27 / 50

The shrinking or distances due to technological advances such as computer and fax connections by telephone are one characteristic of what new challenge to marketing ?

Rapid globalization

The changing world economy

The call for more socially responsible marketing

The micro-chip revolution

28 / 50

Which of the following is Not True about education in LDCs ?

Public expenditure per student for higher education is about ten times as high as for primary education

Boys are sent to schools far more often than girls

Economists unanimously agree that LDCs should put greater priority on primary education

The expansion of primary education redistributes benefits from the rich to the poor

29 / 50

When President Kennedy told the Soviet leader to withdraw Russian missiles in Cuba it was an illustration of one of the following types of foreign policy ?

crisis

general

administrative

threatening

30 / 50

A positive externality generates ?

a social value curve that is above the demand curve (private value curve) for good

a social cost curve that is above the supply curve (private cost curve) for a good

a social value curve that is below the demand curve (private value curve) for a good

none of these answers

31 / 50

Governments and corporations sell interest bearing certificates to raise money for expansion or trade. What is called these certificates ?

Sureties

Certificates

Security bonds

Bond

32 / 50

Which are Pakistan major seasons for agriculture crop ?

barani & rabi

Kharif & Barani

Kharif & rabi

Kharif , Rabi

33 / 50

The rate of change for most of human history has been________________?

slow because people are creatures of habit

unchanged

slow until the Industrial Revolution then rapid

rapid since the beginning of history

34 / 50

Medical care clearly enhance people?s lives. Therefore, we should consume medical care until ?

buyers receive no benefit from another unit of medical care.

we must cut back on the consumption of other goods.

the benefit buyers place on medical care is equal to the cost of producing it

everyone has as much as they would like

35 / 50

For which agricultural produce Sudan is famous and which comes under Tropical Grassland Region ?

Cotton

Millets

Coffee

Barley

36 / 50

What is called the crop which is grown for sale rather than the farmer?s own use ?

Business Crop

Cash crop

Earning Crop

Money Crop

37 / 50

A positive, dynamic effect of economic integration is illustrated by ?

economy-of-scale effect

increased monopoly power of firms

trade diversion effect

decrease customs costs

38 / 50

Multinational corporations face problems since they ?

cannot benefit from the advantage of comparative advantage

can only invest at home but not overseas

may raise political problems in countries where their subsidiaries operate

can only invest overseas but not at home

39 / 50

Output fell sharply in the transition economies because ?

there was little corporate control

All of the above

vital infrastructure was missing

banks were unable to function

40 / 50

An organization plans the use of its fund during a 12-month period. What is this period called ?

Fiscal period

Calendar year

Year unit

Fiscal year (FY)

41 / 50

As the required reserve ratio is decreased the money multiplier ?

could either increase or decrease

remain the same, as long as bank hold no excess reserves

decrease

increase

42 / 50

Given a system of floating exchange rates rising income in the United States would trigger a (an) ?

increase in the demand for imports and decrease in the demand for foreign currency

decrease in the demand for imports and an increase in the demand for foreign currency

increasing in the demand for imports and an increasing in the demand for foreign currency

decrease in the demand for imports and a decrease in the demand for foreign currency

43 / 50

In the year 2010-11 what was per capita income ?

$1,095

$905

$975

$945

44 / 50

The Generalized System of Preferences (GSP) program allows ?

any advanced country to ignore the most favored-nation clause

any developing country to ignore the most-favored nation clause

developing country export to advanced countries to receive preferential tariff treatment

developing country imports from advanced countries to receive preferential tariff treatment

45 / 50

By financial crowding out economist mean ?

credit rationing

government borrowing drives up interest rates

what the government borrows cannot be used for private investment

Bank of England controls on commercial bank lending

46 / 50

Modern societies are grappling with the notion of_________________?

lowering the age at marriage

allowing same-sex couples to marry

none of the above

eliminating marriage altogether

47 / 50

Suppose that the supply curve of tin is highly inelastic. If the demand curve of tin decrease and increase cyclically along the supply curve of tin, then in this market the size of the quantity fluctuation will bathe size of the price fluctuations ?

the same as

Any of the above

relatively greater than

relatively less than

48 / 50

The Phillips curve indicates that there is a ?

negative relationship between the inflation rate and the unemployment rate

negative relationship between the inflation rate and labor demand

positive relationship between labor supply and the inflation rate

positive relationship between the inflation rate and the employment the

49 / 50

The record of a country?s transactions in goods, services and assets with the rest of the world is its ?

current account

capital account

balance of payments

balance of trade

50 / 50

Livestock sector accounts for nearly 36 percent of agriculture value added and about 9.0 percent of the ?

export earnings

GNP

GDP

budget

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