Economics Quiz 27

1 / 50

Which of the following best describes the rate of growth in productivity in the United states over the last fifty years ?

Productivity has been growing more slowly every decade since world War II

Productivity grew slowly from the 1950s through the 1970s and then began to accelerate probably due to advances in computer technology

Productivity grew quickly in the 1950s and 1960s more slowly from the early 1970s through 1995 and then quickly again

Productivity growth has been steady over the last 50 years

2 / 50

If a person who works in coal mine gets paid more than a person with a similar background and skills who works in a safer job, then ?

we have observed a compensating differential

coal miners must have greater human capital than others

we have evidence of discrimination against workers outside the coal mine

coal miners must be more attractive than other workers

3 / 50

A perfectly competitive market has ?

at least a few sellers.

only one seller.

many buyers and sellers.

firms that set their own prices

4 / 50

The economic participant who decides how to use the factors of production and for what purpose in called a________________?

firm

product

household

market

5 / 50

Macroeconomics is the study of ?

individual building blocks in the economy

household purchase decisions

the economy as a whole

the relationship between different sectors on the economy

6 / 50

An increase in investment is most likely to be caused by ?

A decrease in the marginal propensity to consume

Lower interest rates

An increase in withdrawals

Lower national income

7 / 50

If a firm has some degree of market power, then output price ?

no longer influences the amount demand of the firm?s product

is guaranteed to be above a firm?s average cost.

is determined by the actions of other firms in the industry

becomes a decision variable for the firm

8 / 50

Menu costs in relation to inflation refers to ?

Costs of revaluing the currency

Costs of finding better rates of return

Costs of money increasing its value

Costs of altering price lists

9 / 50

If the marginal revenue is Positive ?

Selling another unit will increase total revenue

Selling another unit will increase costs

Selling another unit will increase average revenue

Selling another unit will increase profits

10 / 50

The poverty trap refers to ?

a situation in which those receiving state benefits may be almost no better off if they choose to work more to earn more because doing so will reduce the amount of benefit income to which they are entitled and increase the amount to tax

a situation in which those receiving state benefits may be almost no better off if they choose to work more to earn more income for themselves and their families because doing so will mean they have to pay back the benefits they have previously received

a situation in which those receiving state benefits are discriminated against by employers and so find it more difficult to find jobs.

a situation in which workers are unable to find jobs.

11 / 50

Net taxes are ?

Taxes paid firms and households to the government minus the transfer payments made to firms and household

Taxes paid by firms and households to the government plus transfer payments made to firm and households

government expenditures minus government revenues

taxes paid by firms and households to the government minus the cost of collecting the taxes

12 / 50

For perfect competition to work there must be ?

a standard product

all of the above

free entry and exit

many buyers and sellers

13 / 50

The poorest region of the World is ?

the Middle East

Asia

Sub Saharan Africa

Latin America

14 / 50

History is often NOT considered a social science because_______________?

it does not study people

historians do not use computers

it is not based on evidence

its primary concern is to record events of the past

15 / 50

A higher GDP per capita may not means that the quality of life has really improved because ?

It does not measure the quality of the items produced

It measures Gross Domestic Product

It measures wealth not income

It is only measured every five years:

16 / 50

Which of the following is an agricultural produce of Taiwan ?

Maize

Rice

Coffee

None of the above

17 / 50

A contraction in supply occurs when ?

The supply curve shifts outwards

The quantity supplied falls when the price falls

Demand shifts outwards

The supply curve shifts inwards

18 / 50

Suppose the economy is initially in long run equilibrium Then suppose there is a drought that destroys much of the wheat crop if policymakers allow the economy to adjust to long-run equilibrium on its own, according to the model to aggregate demand and aggregate supply what happens to prices and output in the long run ?

Prices fall; output is unchanged from its initial value

Output falls; prices are unchanged from the initial value

Output rises; prices are unchanged from the initial value

Output and the price level are unchanged from their initial values

19 / 50

Conflicts between different levels of the same channel of distribution are referred to as ?

vertical conflicts

parallel conflicts

horizontal conflicts

layer-based conflicts

20 / 50

Aggregate demand in an economy trading internationally with a government sector can be written as ?

AD = C + I + G

AD = C + I + G + X + Z

AD = C + I + G + X ? Z

AD = C + I

21 / 50

The marginal rate of tax paid is ?

Change in the tax paid / change in income

Change in income / change in tax paid

Total income / total tax paid

The total tax paid / total income

22 / 50

One source of inefficiency in monopolistic competition is that since price is above marginal cost, some units are not produced that buyers value in ?

monopolistically competitive firms produce beyond their efficient scale

monopolistically competitive firms earn economic profits in the long run

Since price is above marginal cost surplus is redistributed from buyers to sellers

excess of the cost of production and this causes a deadweight loss.

23 / 50

If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the marginal propensity to consume is what ?

810

800

0.8

0.81

24 / 50

If Pakistan?s incomes rise faster than those in most other countries the the exchange value will tend to ?

not be affected

depreciate

appreciate

fluctuate more than it would do otherwise

25 / 50

According to the differential association theory deviant acts are_________________?

considered normal by some antisocial individuals

caused by abnormal chromosomes

the result of social deprivation

learned through interaction with others

26 / 50

Externalities are a problem only if ?

the externalities are negative

all firms are monopolistic

decision makers do not take them into account

all firms are perfectly competitive

27 / 50

Refer to Exhibit 4. If a tax is placed on the product in this market, producer surplus is the area?

A + B + E

A + B + C + D

28 / 50

How are presidential programs funded ?

By Congress

By foreign nations

By withdrawals from the Treasury Department

By government investments

29 / 50

To maintain its economic position, Japan has often limited the number of cars or the quantity of farm products that the United States can sell in Japan Japan has imposed these limits to develop ?

a more open market

a belief system

a favorable balance of trade

an equality of trade position

30 / 50

The demand for which of the following is likely to be the most price inelastic ?

transportation

taxi rides

bus tickets

airline tickets

31 / 50

An increase in the price of beef providers information which ?

tells consumers to buy less pork

tells producers to produce more beef.

tells consumers to buy more beef.

provides no information because prices in a market system are managed by planning boards.

32 / 50

Economic profit is equal to total revenue minus ?

implicit costs

marginal costs

explicit costs

variable costs

33 / 50

There is method by which one currency is bought, sold or valued in terms of other currencies, gold or accounting units such as the Special Drawing Right of IMF. What is it called ?

Currency exchange

Currency value

Exchange rate

Currency value

34 / 50

The Choice between high markups and high volume is part of which of the following retailer marketing decisions ?

Promotion decisions

Produced assortment and services decisions

Pricing decisions

Target market decisions

35 / 50

The social sciences have no laws because ?

social science research techniques are flawed

the various disciplines squabble among themselves

social scientists are a lawless group

none of the above

36 / 50

Refer to Exhibit 4. If a tax is placed on the product in this market consumer surplus is the area ?

A + B + E

A + B +C + D

37 / 50

Which of the following country did not experience large capital flights from 1976 to 1984 ?

Canada

Venezuela

Mexico

Argentina

38 / 50

The Bank of England and the Federal Reserve ?

loan money to most of LDC commercial banks

are central banks

are branches of commercial banks

use fiscal policy to influence GDP

39 / 50

In terms of the demand for money the interest rate represents ?

the price of borrowing money

the rate at which current consumption can be exchanged for future consumption

The opportunity cost of holding money

the return on money that is saved for the future

40 / 50

Durkheim,s approach to religion involved the opposed concepts of_________________?

good and evil

sacred and profane

children of light and children of darkness

natural and supernatural

41 / 50

The merging of majority and minority groups as happened in Brazil is called_______________?

acculturation

segregation

accommodation

amalgamation

42 / 50

A graph showing all the combinations of capital and labor that can used to produce a given amount of output is ?

a production functions

an isoquant.

an indifference curves.

an isocost line

43 / 50

Suppose a wave of investor and consumer pessimism in the USA causes a reduction in spending If the US federal Reserve (Which has a broader remit than the Bank of England Which is charged only with controlling inflation) chooses to engage in activist stabilization policy it should ?

decrease the money supply

Increase government spending and decrease taxes

decrease interest rates

decrease government spending and increase taxes

44 / 50

One of the perceived advantages of suburban living is_______________________?

larger variety of cultural resources

older more gracious housing

concentration of apartments

greater safety from crime

45 / 50

Which of the following iron has got the highest carbon content ?

Wrought Iron

Cast Iron

Mild Steel

Stainless Steel

46 / 50

James Pickett J.Forsyth, and N. S McBain on the basis of field research in Africa, concluded that business people often want to use the most advanced design without knowing that it may not be the most profitable. They attribute this attitude to ?

engineering mentality

maximum capital absorption

intermediate technology

factor price distortions

47 / 50

According to Supply-side economists. if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?

aggregate supply will increase will increase aggregate output will increase and the price level will increase

both aggregate supply and demand will increase will increase and the price level will increase

aggregate supply will increase will increase aggregate demand will decrease and the price level will decrease

aggregate supply will increase will increase aggregate output will increase and the price level will decrease

48 / 50

Annual GNP growth of 6% poverty reduced by 1% point of the population Balance of payments deficit not in excess of $200 million For a planner, the above are ?

bound by soft budget

target variables

recurrent expenditures

achieved only through socialism

49 / 50

Which statistical factor is used to convert current currency purchasing power into inflation adjusted purchasing power ?

Deflector

Inflator

Purchasing power parity

Deflation

50 / 50

Total land area of Khyber Pakhtunkhwa comprises of 10.2 mha (25.20 million acres), out of which nearly ________ are cultivated?

29% or 5.93 mha

10% or 1.93 mha

20% or 3.93 mha

35% or 7.93 mha

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