Economics Quiz 4

1 / 50

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

GNP

export earnings

GDP

budget

2 / 50

Multinational corporations face problems since they ?

can only invest at home but not overseas

can only invest overseas but not at home

may raise political problems in countries where their subsidiaries operate

cannot benefit from the advantage of comparative advantage

3 / 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 0

Equal to 1

4 / 50

Group marriage ________________?

has been a consistent feature in Western societies

is widespread in several societies

has never been consistently or extensively practiced

is practiced among Australian aborigines

5 / 50

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

Year unit

Fiscal year (FY)

Calendar year

Fiscal period

6 / 50

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

Excise

Value addition

Tax on stage

Value added

7 / 50

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

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

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

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

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

8 / 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 due to a large number of parties affected by the externality

costs incurred to reduce the pollution

costs incurred to enforce the agreement

costs incurred due to lawyers? fees

9 / 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______________?

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

None of the statements above is correct

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

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

10 / 50

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

$945

$905

$975

$1,095

11 / 50

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

rapid since the beginning of history

unchanged

slow because people are creatures of habit

slow until the Industrial Revolution then rapid

12 / 50

By financial crowding out economist mean ?

government borrowing drives up interest rates

what the government borrows cannot be used for private investment

Bank of England controls on commercial bank lending

credit rationing

13 / 50

Enacting legislation__________________?

all of the above

involves negotiation and compromise

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

is a slow and painful process

14 / 50

As the required reserve ratio is decreased the money multiplier ?

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

could either increase or decrease

increase

decrease

15 / 50

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

agent

principle

screener

signaler

16 / 50

In a cartel ?

Firms collude

Price wars are common

Firms use price to win market share from competitors

Firms compete against each other

17 / 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

threatening

general

administrative

18 / 50

The Phillips curve indicates that there is a ?

positive relationship between labor supply and the inflation rate

positive relationship between the inflation rate and the employment the

negative relationship between the inflation rate and the unemployment rate

negative relationship between the inflation rate and labor demand

19 / 50

In economic terms incomes are distributed according to________________?

innate talent

a person?s marginal productivity

which skills one has

whom one knows

20 / 50

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

increased monopoly power of firms

trade diversion effect

decrease customs costs

economy-of-scale effect

21 / 50

The favorable evaluation of presidents is based on______________?

the teflon principle

the caretaker role

dynamic political leadership

strict adherence to the written Constitution

22 / 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

reduce poverty

help small businesses

weaken the power of trade unions

23 / 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 ?

The changing world economy

The micro-chip revolution

The call for more socially responsible marketing

Rapid globalization

24 / 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 the marginal product of labor

the price of the output times wage of labor

none of these answers

25 / 50

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

Business Crop

Money Crop

Earning Crop

Cash crop

26 / 50

What is Debt Service ?

none of these

Both of them

repayments of external debt

Interest payments on external debts

27 / 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 ?

500 units

550 units

450 units

490 units

28 / 50

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

Bond

Security bonds

Certificates

Sureties

29 / 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

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

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

30 / 50

A profit maximizing firm is perfect competition produces where ?

Total revenue is maximized

Marginal revenue equals average cost

Marginal revenue equals marginal cost

Marginal revenue equals zero

31 / 50

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

Boys are sent to schools far more often than girls

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

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

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

32 / 50

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

lender of less resort

financial intermediation

Financial regulation

Open Market operations

33 / 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

coke and Pepsi

petrol from BP and petrol from shell

kit-Kat chocolate snacks and Twix chocolate snacks

34 / 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

Free adjustment

Comparative adjustment

Cost of living adjustment

35 / 50

The refinancing rate is ?

The interest rates the public pays when borrowing from banks

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

36 / 50

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

Barley

Coffee

Cotton

Millets

37 / 50

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

Increasing the number of shares from 20 to 30

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 in the portfolio from 1 to 10

38 / 50

A positive externality generates ?

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

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

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

none of these answers

39 / 50

The first European people to form a nation were is________________?

English

Picts

Slavs

Scots

40 / 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 less than

relatively greater than

41 / 50

An increase in price all other things unchanged leads to ?

A contraction of supply

An extension of supply

A shift in supply inwards

A shift in supply outwards

42 / 50

Modern societies are grappling with the notion of_________________?

eliminating marriage altogether

allowing same-sex couples to marry

none of the above

lowering the age at marriage

43 / 50

Output fell sharply in the transition economies because ?

there was little corporate control

vital infrastructure was missing

banks were unable to function

All of the above

44 / 50

Gross National Product equals ?

Gross Domestic Product plus net property income from abroad

Net National Product adjusted for inflation

Net National Product plus net property income from abroad

Gross Domestic Product adjusted for inflation

45 / 50

The Generalized System of Preferences (GSP) program allows ?

developing country imports from advanced countries to receive preferential tariff treatment

any advanced country to ignore the most favored-nation clause

developing country export to advanced countries to receive preferential tariff treatment

any developing country to ignore the most-favored nation clause

46 / 50

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

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

everyone has as much as they would like

buyers receive no benefit from another unit of medical care.

we must cut back on the consumption of other goods.

47 / 50

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

270 per sq. Km

291 per sq. Km

196 per sq. Km

235 per sq. Km

48 / 50

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

nation-sates or national states

territories

principalities

dominions

49 / 50

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

balance of payments

current account

capital account

balance of trade

50 / 50

Which are Pakistan major seasons for agriculture crop ?

Kharif , Rabi

Kharif & rabi

Kharif & Barani

barani & rabi

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