Economics Quiz 78

1 / 50

Suppose the price level falls but because of fixed nominal wage contracts the real wage rises and firms cut back on production This is a demonstration of the ?

misperceptions theory of the short-run aggregate supply curve

classical dichotomy theory of the short-run aggregate supply curve

sticky-price theory of the short run aggregate supply curve

sticky-wage theory of the short-run aggregate supply curve

2 / 50

According to Karl Marx_______________?

classes are composed of the have-nots who eventually revolt against the haves

status is also a phenomenon of stratification

classes are determined by the relationship of a group in society to the means of production

classes are the result of different life styles

3 / 50

The main problem facing societies with a surplus is_____________________?

how to get rid of it

what to produce how produce it and for whom to produce it

how to keep it away from enemies

there is no problem it is divided equally

4 / 50

A country?s capital stock is the ?

inflow of investment from abroad

difference between GDP and capital consumption

sum of previous gross investment minus depreciation

approximated investment minus actual investment

5 / 50

Unemployment means that ?

there is excess demand in the labour market

there are some people who will not work at the going wage rate.

at the going wage rate, there are people who want to work but cannot find work.

people are not willing to work at the going wage rate.

6 / 50

Investment in agriculture sector is Rs ?

49.9 billion

45.1 billion

50.9 billion

45.9 billion

7 / 50

Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the sellers is the area ?

C + F

8 / 50

CEO stands for_______________?

chief executive officer

clear everybody out

capital employment outlay

Caribbean Entrepreneurs Office

9 / 50

Roberto and Thomas live in a university hall of residence Roberto values playing loud music at a value of ?100. Thomas values Pease and quiet at a value of ?150. Which of the following statements is true ?

It is efficient for Roberto to stop playing loud music only if Roberto has the property right to play loud music

it is efficient for Roberto to continue to play loud music

It is efficient for Roberto to stop playing loud music regardless of who has the property right to the level of sound

It is efficient for Roberto to stop playing loud music only if Thomas has the property right to peace and quiet

10 / 50

David Ricardo?s theory in favor of free trade uses the ideal of ?

absolute advantage

comparative advantage

mutual advantage

multilateral advantage

11 / 50

Throughout most of humankind?s existence, population grew at a rate of ________ per year?

0.50%

0.00%

10%

12 / 50

The federal government has increased its responsibilities at the local level because_____________?

urban influence on the states

excess state revenues

the tenth amendment

the states inefficiency

13 / 50

Which of the following statement about rural and agricultural development is true ?

China?s rural population receives little income from nonfarm income

The agrarian community requires a full range of services such as schools merchants banks and so on

Rural development is the same as agricultural development

Household nonfarm income is uncorrelated to farm productivity and uncorrelated to farm productivity and household incomes in Kenya

14 / 50

The ecosystem is__________________?

the way inanimate objects are placed into the natural system

the way living things interact and interrelate with each other and their environments

a systematic application of the economy

what Hobbes called the ?state of nature?

15 / 50

Which of the following statements about trade policy is true ?

A restrictive imports quota increases a country?s net exports

A country?s trade policy has no impact on the size of its trade balance

None of these answers

A restrictive import quota decreases a country?s net exports

16 / 50

The term ?rent? as it is used by economists. refers to ?

the amount paid each year by a tenant for an apartment

the return to any factor of production that is in fixed supply

any profit earned by stockholders when they sell their stock

the profit earned by the owner of any housing unit.

17 / 50

Governments may contribute to inflationary pressure because of building up large ?

budget deficits

welfare plans

numbers of employees

expenditures

18 / 50

In a cartel member firms may be given a fixed amount to produce. This is called a ?

Limit

Quota

Quotient

Factor

19 / 50

Futurist Alvin Toffler called his concept_______________?

culture shock

future shock

static shock

myocardial shock

20 / 50

The last stage in the selling process in the __________ stage?

Approach

handling objections

follow-up

closing

21 / 50

Lean production________________?

All of the above

pushes responsibility down the organizational ladder

has as its goal perfection

combines the best features of craft and mass production

22 / 50

Purchases of government securities in the United States by foreigners is ?

a credit item in the current account

a debit item in the capital account

a credit item in the capital account

a debit item in the current account

23 / 50

What is called the result of a state?s borrowing from its population, from foreign governments or from international institutions ?

National debt

Both of them

Public debt

None of them

24 / 50

Within the circular flow of income, an increase in domestic income will tend to increase ?

exports

imports

taxes

inventories

25 / 50

An individual learns to be a human being by______________?

instincts

cosmic influences

in our society watching television

socialization

26 / 50

The length of a business cycle would be measured from ?

the slump to the expansion

peak to trough

peak to peak

trough to peak

27 / 50

Constitutions are________________?

intended to limit governmental power

always written

meant to establish the rule of men

blueprints for monarchies

28 / 50

Human wants are_______________?

Always fixed

Limited

Likely to decrease over time

Unlimited

29 / 50

The teenage birthrate_______________?

has soared in the past two years

none of the above

has declined in the past several years

is highest among white teenagers

30 / 50

Today?s Catholic Church is classified as a________________?

intergovernmental organization

nationless state

nongovernmental organization

national state

31 / 50

In Nash equilibrium each player chooses the best strategy ?

that is a credible threat

Assuming other players move first

given the strategies of other players

dominated by the other players

32 / 50

The total forest area of Punjab is ?

0.89 million hectares

1.69 million hectares

0.989 million hectares

0.96 million hectares

33 / 50

Structural economists from the United Nations Economic Commission for Latin America (ECLA) emphasized ?

contractionary monetary and fiscal policies

short term-adjustment with a human face

long-run institutional and structural economic change

currency devaluation

34 / 50

If A forms a customs union with C, the value of trade diversion will be ?

$40,000

$10,000

$20,000

35 / 50

The United States Canada Northern and Western Europe among other areas are________________?

still trying to curb population growth

in the first stage of the demographic transition

threatened by under population

in the third stage of the demographic transition

36 / 50

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

any of the above

the same as

relatively less than

relatively greater then

37 / 50

Total increases from Rs500 to Rs600 when output increases from 20 to 30 units. Fixed costs are Rs200 Which of the following is true ?

Average cost falls

Marginal cost is Rs20

Average fixed cost is Rs10

Variable cost rises by Rs100

38 / 50

The most wave of globalization which began in the 1980s has emphasized the outsourcing of ?

services and white-collar jobs

manufacturing and blue-collar jobs

agriculture and farming jobs

natural resource extraction and mining jobs

39 / 50

Country A has the comparative advantage in ?

Neither wine nor beer

Both wine and beer

Beer

Wine

40 / 50

In the short term a firm will produce provided the revenue ?

covers revenue

covers variable costs

covers total costs

covers fixed costs

41 / 50

Rice account for 6.6 percent in value added in agriculture. What is its contribution in GDP ?

6.10%

1.60%

19%

22%

42 / 50

According to Lewis?s model the dual economy grows only when ?

agricultural sector uses modern equipment

modern manufacturing sector is labor intensive

the modern sector increases its output share relative to the traditional sector

agricultural sector hires labor economically

43 / 50

An example of unconscious socialization would be____________________?

correcting child?s use of worlds

child taught to use knife and fork

child taught to read

child absorbing parents? attitudes toward race

44 / 50

If a maximum price is set below equilibrium there will be ?

A price increase

Excess demand

A price fall

Excess supply

45 / 50

Industrial Revolution__________________?

made all social classes equal

created a class of industrial workers

none of the above

eliminated social classes

46 / 50

A reduction in interest rates, causes an increases in the monetary base that results in an _________ in the availability of consumer credit and a ________ in the cost of consumer credit?

increase , increase

reduction, reduction

reduction, increase

increase, reduction

47 / 50

The balance of payment is ?

Total sum a state owned

Shortfall in budget

Balance between a nation?s expenditure on imports and its receipts from exports

Total liabilities of a nation

48 / 50

Economic growth can be shown by ?

A decision by the government to produce inside the production possibility frontier

An outward shift of the production possibility frontier

An inward shift of the production possibility frontier

A movement along the production possibility frontier

49 / 50

The popularity of spaghetti in the United States resulted from_______________?

an innovation in agriculture

the discovery of noodles

diffusion

the invention of pasta machines

50 / 50

The traditional profit-maximizing theory of the firm has been criticized by some economists because ?

firms have other aims

Both the first and second option

it does not explain monopolistic competition

firms do not know how to maximize profits.

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