Economics Quiz 16

1 / 50

Using government regulations to force a natural monopoly to charge a price equal to his marginal cost will ?

improve efficieny

Cause the monopolist to exit the market

raise the price of good

attract additional firms to enter the market

2 / 50

When supply and demand are essentially equal the economy is said to be in________________?

abeyance

equilibrium

equivalence

a recession

3 / 50

What is called the price that a potential buyer is willing to pay for a security ?

Quote price

None of these

Offer price

Bid

4 / 50

Relatively high real interest rates in the United States tend to ?

increase the foreign demand for dollars causing the dollar to depreciate

decrease the foreign demand for dollars causing the dollar to appreciate

increase the foreign demand for dollars causing the dollar to appreciate

decrease the foreign demand for dollars causing the dollar to depreciate

5 / 50

The purpose of the Bill of Rights is to_________________?

restrict the power of the government

weaken the government

give more power to the government

make revolution impossible

6 / 50

When did the United States government begin to function as a cohesive unit ?

Both B and C

After the Constitutional Convention of 1788

At the signing of the Declaration of Independence

At the Inauguration of George Washington in 1789

7 / 50

Macroeconomics is the branch of economics that deals with ?

the economy as a whole

imperfectly competitive markets:

The functioning of individual industries and the behavior of individual decision-making units business firms and households

Only the long run adjustments to equilibrium in the economy

8 / 50

Arguments for free trade are sometimes disregarded by politicians because ?

Economists tend to favor high protected domestic markets

Maximizing domestic efficiency is not considered imports

Maximizing consumer welfare may not be a chief priority

There exist sound economic reasons for keeping one?s economy isolated from other economies

9 / 50

Which of the following is not true about how people make decisions ?

People are sometimes too sure of their own abilities

people give too much weight to a small number of vivid observations

All of these answers are actually true statements about how people make decisions.

People are always rational maximizers

10 / 50

Deadweight loss is greatest when ?

supply is elastic, and demand is perfectly inelastic

both supply and demand are relatively inelastic

demand is elastic, and demand is perfectly inelastic

both supply and demand are relatively elastic

11 / 50

High and persistent inflation is caused by ?

OPEC raising the price of oil too much

governments increasing the quantity of money too much

regulations raising the cost of production too much

unions increasing wages too much

12 / 50

The most recent social movements________________?

none of the above

attract the underclass rather than the working class

are community and locality based?

focus more on economic issues

13 / 50

In the present national power is based on________________?

location and population

size and resources

specific combinations of attributes

political ideology and wealth

14 / 50

In countries such as Iran and Iraq the Moslem religion is a(n)_______________?

sect

cult

ecclesia or universal church

denomination

15 / 50

For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to ?

increase the demand for money

decrease the demand for money

decrease the money supply

increase the money supply

16 / 50

Abraham Maslow and Carl Rogers are associated with the following theories of personality.

stressing self-concept and self-actualization

development

psychoanalytic

environmental determinism

17 / 50

A(n) _____ is a retail store that carries a narrow product line with a deep assortment within that line ?

department store

convenience store

specialty store

shopping goods store

18 / 50

Social scientists explain the incest taboo as_______________?

biologically programmed

way of reducing family conflict

a religious universal

all of the above

19 / 50

A state planning ideology arose in LDCs as a reaction to nationalist perceptions of ?

western countries, nation-state ideology

slow economic growth under colonial capitalism

Keeping balanced budget, a price target

minimizing public spending in the rural areas

20 / 50

The Phillips curve shows the relationship between inflation and what ?

Unemployment

The rate of growth in an economy

The rate of price increase

The balance of trade

21 / 50

Economics say that there has to be some from of rationing whenever ?

there are externalities

merit goods are produced

inflation occurs

there is excess demand

22 / 50

An increase in costs will ?

Shift aggregate supply

Shift aggregate demand

Increase the productivity of employees

Reduce the natural rate of unemployment

23 / 50

The annual requirement of edible oil is nearly ?

1.6 million tones

1.7 million tones

1.5 million tones

1.9 million tones

24 / 50

According to the quantity theory of money an increase in the money supply is most likely to lead to inflation if ?

There is deflation

The velocity of circulation and the number of transactions is constant

The velocity of circulation decrease

The number of transaction decrease

25 / 50

If a buyer?s willingness to pay for a new Honda is Rs20,000 and she is able to actually buy it for Rs18,000 her consumer surplus is ?

Rs20,000

Rs18,000

Rs0.

Rs2,000

26 / 50

Nominal GNP measures income ?

corrected for tax changes

corrected for changes in interest rates

At current prices

At the present time

27 / 50

The most common form of marriage today is_______________?

none of these

polygyny

polygamy

polyandry

28 / 50

Group of Singapore, Hong, Kong, Taiwan, and south Korea is called?

All of these

Little Tigers

Four Dragons

Four Tigers

29 / 50

Which one of the following types of Unemployment results from the wage being held above the competitive equilibrium wage ?

Frictional Unemployment

Structural unemployment

Cyclical Unemployment

None of these answers

30 / 50

Because supply and demand conditions for primary products are very price inelastic their prices ?

fluctuate about as much as the prices of manufactured goods

have been more stable than the prices of manufactured goods

tend to be very unstable from year to year

have been steadily rising in recent decades

31 / 50

A common resource is ?

not rival but excludable

rival but not excludable

both rival and excludable

neither rival nor excludable

32 / 50

Concerning dumping, which of the following is true ?

U.S firms can obtain protection from foreign dumping, even though this protection tends to harm overall U.S welfare

U.S firms rarely if ever, engage in distress dumping or persistent dumping

dumping can never be a profit-maximizing strategy for U.S firms to pursue

predatory dumping represents the most common form of dumping by U.S firms

33 / 50

When gathering data, the scientist is required to exhibit all BUT which one of the following traits ?

Ethical neutrality

Courage

Social involvement

Patience

34 / 50

A form of treatment for severe mental disorders that has been largely abandoned is_____________?

psychotherapy

hypnotherapy

psychosurgery

electroconvulsive shock therapy

35 / 50

If nominal GDP in 2005 exceeds nominal GDP in 2004, then the production of output ?

may have risen fallen, or stayed the same because there is not enough information to determine what happened to real output

must have fallen

must have risen

must have stayed the same

36 / 50

When an international seller sells a plant equipment or technology to another country and agrees to take payment in the resulting products, it is called?

barter

buy-back

like-value-exchange

counterpurchase

37 / 50

Social life is organized and structured through____________?

patterns of actions

all of the above

group situations and the positions of individuals

rules and regulations

38 / 50

Which of the following is a normative statement in economics ?

The Pakistan?s economy is growing fast relative to other SAARC members

More spending by the government reduces poverty

The government should concentrate on reducing unemployment

Higher taxes lead to less desire to work

39 / 50

Suppose that 40 percent of the voting population wish to spent Rs1,000 for artwork in City Hall, 25 percent wish to spent Rs20,000 and 35 percent wish to spend Rs 22,000 What is the median preferred outcome, the average preferred outcome and the modal preferred outcome ?

Rs1,000; Rs20,000; Rs22,000

Rs20,000; Rs20,000; Rs22,000

Rs20,000; Rs13,100; Rs1,000

Rs1,000; Rs14,333; Rs1,000

40 / 50

When firms enter a monopolistically competitive market and the business-stealing externality is larger than the product-variety externality then ?

there are too many firms in the market and market efficiency could be increased if firms exited the market

There are too few firms in the market and market efficiency could be be increased with additional entry

The only way to improve efficiency in this market is for the government to regulate it like a natural monopoly.

the number of firms in the market is optimal and the market is efficient

41 / 50

Name the scale for measuring the average share price and percentage change of 30 major US industrial companies ?

NASDAQ

Dow Jones Index

Nikki Index

Major Index

42 / 50

Privatisation is the transfer out ?

Privately owned business to the government sector

government businesses to the private sector

Publicly held stock to private individuals

corporately owned businesses to individuals

43 / 50

Secularization will_______________?

be punished by God

promote secular humanism

stimulate new sects and cults to overcome the secularization process

finally destroy religion in the United States

44 / 50

The golden-rule saving rate is the rate of saving that ?

gets the highest rate of interest

maximizes the level of long-run investment

maximizes the level of long-run consumption

maximizes human capital

45 / 50

All of the following are types of imperfect competition except ?

monopolistic competition

unfair competition

monopoly

oligopoly

46 / 50

Which of the following would fit Charles Horton Cooley?s classification of a primary group ?

A sales clerk and a customer

Tourists visiting a resort

Redheads

A married couple

47 / 50

When one country provides most favored nation status (normal trade relations) for another, it agrees to ?

charge the nation?s products a lower tariff than any other nation?s

exports to that nation any products that it wants to purchase

charge that nation?s products a tariff rate no higher than that on any other nation

charge that nation?s products a higher tariff than any other nation?s

48 / 50

Form society?s point of view, society would be better off if a monopolist ?

produced less and charged a lower price.

produced more and charged a higher price

produced less and charged a higher price

produced more and charged a lower price

49 / 50

Cotton accounts for 11.5 percent of value added in agriculture. How much it accounts in GDP ?

2.70%

3.50%

20%

50 / 50

Which province of Pakistan is the largest tobacco producing province ?

Sindh

Baluchistan

K.P.K

Punjab

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