Economics Quiz 16

1 / 50

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

equivalence

abeyance

a recession

equilibrium

2 / 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; Rs13,100; Rs1,000

Rs1,000; Rs14,333; Rs1,000

Rs20,000; Rs20,000; Rs22,000

3 / 50

In the present national power is based on________________?

specific combinations of attributes

political ideology and wealth

size and resources

location and population

4 / 50

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

Tourists visiting a resort

A sales clerk and a customer

Redheads

A married couple

5 / 50

An increase in costs will ?

Shift aggregate demand

Reduce the natural rate of unemployment

Shift aggregate supply

Increase the productivity of employees

6 / 50

Nominal GNP measures income ?

At current prices

At the present time

corrected for changes in interest rates

corrected for tax changes

7 / 50

Social life is organized and structured through____________?

group situations and the positions of individuals

patterns of actions

rules and regulations

all of the above

8 / 50

A common resource is ?

rival but not excludable

not rival but excludable

both rival and excludable

neither rival nor excludable

9 / 50

Macroeconomics is the branch of economics that deals with ?

Only the long run adjustments to equilibrium in the economy

imperfectly competitive markets:

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

the economy as a whole

10 / 50

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

Both B and C

At the Inauguration of George Washington in 1789

At the signing of the Declaration of Independence

After the Constitutional Convention of 1788

11 / 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

12 / 50

Arguments for free trade are sometimes disregarded by politicians because ?

Maximizing consumer welfare may not be a chief priority

Economists tend to favor high protected domestic markets

Maximizing domestic efficiency is not considered imports

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

13 / 50

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

produced more and charged a lower price

produced less and charged a higher price

produced more and charged a higher price

produced less and charged a lower price.

14 / 50

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

NASDAQ

Nikki Index

Dow Jones Index

Major Index

15 / 50

The most common form of marriage today is_______________?

none of these

polyandry

polygamy

polygyny

16 / 50

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

development

environmental determinism

psychoanalytic

stressing self-concept and self-actualization

17 / 50

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

None of these answers

Frictional Unemployment

Structural unemployment

Cyclical Unemployment

18 / 50

Social scientists explain the incest taboo as_______________?

way of reducing family conflict

biologically programmed

all of the above

a religious universal

19 / 50

All of the following are types of imperfect competition except ?

unfair competition

monopolistic competition

monopoly

oligopoly

20 / 50

Secularization will_______________?

promote secular humanism

finally destroy religion in the United States

be punished by God

stimulate new sects and cults to overcome the secularization process

21 / 50

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

must have risen

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 stayed the same

22 / 50

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

The number of transaction decrease

The velocity of circulation decrease

The velocity of circulation and the number of transactions is constant

There is deflation

23 / 50

High and persistent inflation is caused by ?

unions increasing wages too much

OPEC raising the price of oil too much

governments increasing the quantity of money too much

regulations raising the cost of production too much

24 / 50

The purpose of the Bill of Rights is to_________________?

give more power to the government

make revolution impossible

restrict the power of the government

weaken the government

25 / 50

The annual requirement of edible oil is nearly ?

1.9 million tones

1.6 million tones

1.5 million tones

1.7 million tones

26 / 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

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

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.

27 / 50

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

slow economic growth under colonial capitalism

western countries, nation-state ideology

minimizing public spending in the rural areas

Keeping balanced budget, a price target

28 / 50

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

attract additional firms to enter the market

improve efficieny

raise the price of good

Cause the monopolist to exit the market

29 / 50

The most recent social movements________________?

attract the underclass rather than the working class

none of the above

focus more on economic issues

are community and locality based?

30 / 50

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

gets the highest rate of interest

maximizes the level of long-run consumption

maximizes human capital

maximizes the level of long-run investment

31 / 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 ?

Rs0.

Rs2,000

Rs20,000

Rs18,000

32 / 50

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

Courage

Social involvement

Ethical neutrality

Patience

33 / 50

Privatisation is the transfer out ?

Publicly held stock to private individuals

Privately owned business to the government sector

corporately owned businesses to individuals

government businesses to the private sector

34 / 50

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

there is excess demand

inflation occurs

there are externalities

merit goods are produced

35 / 50

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

shopping goods store

department store

convenience store

specialty store

36 / 50

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

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

fluctuate about as much as the prices of manufactured goods

37 / 50

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

psychosurgery

electroconvulsive shock therapy

psychotherapy

hypnotherapy

38 / 50

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

increase the foreign demand for dollars causing the dollar to appreciate

decrease 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 depreciate

39 / 50

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

Little Tigers

Four Dragons

All of these

Four Tigers

40 / 50

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

All of these answers are actually true statements 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

People are always rational maximizers

41 / 50

Concerning dumping, which of the following is true ?

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

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

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

42 / 50

Which of the following is a normative statement in economics ?

The government should concentrate on reducing unemployment

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

More spending by the government reduces poverty

Higher taxes lead to less desire to work

43 / 50

Deadweight loss is greatest when ?

demand is elastic, and demand is perfectly inelastic

both supply and demand are relatively elastic

supply is elastic, and demand is perfectly inelastic

both supply and demand are relatively inelastic

44 / 50

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

None of these

Offer price

Bid

Quote price

45 / 50

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

2.70%

3.50%

20%

46 / 50

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

increase the money supply

increase the demand for money

decrease the money supply

decrease the demand for money

47 / 50

The Phillips curve shows the relationship between inflation and what ?

The rate of price increase

The balance of trade

The rate of growth in an economy

Unemployment

48 / 50

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

ecclesia or universal church

sect

denomination

cult

49 / 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?

counterpurchase

barter

like-value-exchange

buy-back

50 / 50

Which province of Pakistan is the largest tobacco producing province ?

Sindh

Punjab

Baluchistan

K.P.K

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