Economics Quiz 16

1 / 50

The Phillips curve shows the relationship between inflation and what ?

The balance of trade

The rate of price increase

The rate of growth in an economy

Unemployment

2 / 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?

like-value-exchange

barter

buy-back

counterpurchase

3 / 50

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

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.

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

4 / 50

The annual requirement of edible oil is nearly ?

1.7 million tones

1.9 million tones

1.6 million tones

1.5 million tones

5 / 50

All of the following are types of imperfect competition except ?

unfair competition

monopolistic competition

oligopoly

monopoly

6 / 50

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

raise the price of good

Cause the monopolist to exit the market

improve efficieny

attract additional firms to enter the market

7 / 50

Macroeconomics is the branch of economics that deals with ?

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

Only the long run adjustments to equilibrium in the economy

8 / 50

Social life is organized and structured through____________?

group situations and the positions of individuals

patterns of actions

all of the above

rules and regulations

9 / 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

10 / 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 lower price.

produced more and charged a higher price

produced less and charged a higher price

11 / 50

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

psychoanalytic

stressing self-concept and self-actualization

development

environmental determinism

12 / 50

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

At the signing of the Declaration of Independence

Both B and C

After the Constitutional Convention of 1788

At the Inauguration of George Washington in 1789

13 / 50

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

Keeping balanced budget, a price target

western countries, nation-state ideology

minimizing public spending in the rural areas

slow economic growth under colonial capitalism

14 / 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

15 / 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

16 / 50

Concerning dumping, which of the following is true ?

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

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

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

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

17 / 50

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

equivalence

a recession

equilibrium

abeyance

18 / 50

Social scientists explain the incest taboo as_______________?

all of the above

a religious universal

biologically programmed

way of reducing family conflict

19 / 50

An increase in costs will ?

Reduce the natural rate of unemployment

Increase the productivity of employees

Shift aggregate demand

Shift aggregate supply

20 / 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 ?

Rs20,000; Rs13,100; Rs1,000

Rs1,000; Rs14,333; Rs1,000

Rs20,000; Rs20,000; Rs22,000

Rs1,000; Rs20,000; Rs22,000

21 / 50

The most recent social movements________________?

focus more on economic issues

attract the underclass rather than the working class

are community and locality based?

none of the above

22 / 50

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

20%

3.50%

2.70%

23 / 50

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

Four Dragons

All of these

Little Tigers

Four Tigers

24 / 50

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

psychosurgery

hypnotherapy

electroconvulsive shock therapy

psychotherapy

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 ?

Rs0.

Rs20,000

Rs18,000

Rs2,000

26 / 50

Privatisation is the transfer out ?

Privately owned business to the government sector

corporately owned businesses to individuals

government businesses to the private sector

Publicly held stock to private individuals

27 / 50

The purpose of the Bill of Rights is to_________________?

give more power to the government

restrict the power of the government

make revolution impossible

weaken the government

28 / 50

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

Cyclical Unemployment

Frictional Unemployment

None of these answers

Structural unemployment

29 / 50

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

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

30 / 50

A common resource is ?

not rival but excludable

rival but not excludable

both rival and excludable

neither rival nor excludable

31 / 50

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

Offer price

None of these

Bid

Quote price

32 / 50

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

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

People are sometimes too sure of their own abilities

33 / 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

A married couple

Redheads

34 / 50

Which province of Pakistan is the largest tobacco producing province ?

Sindh

Baluchistan

Punjab

K.P.K

35 / 50

In the present national power is based on________________?

size and resources

political ideology and wealth

specific combinations of attributes

location and population

36 / 50

Deadweight loss is greatest when ?

both supply and demand are relatively inelastic

both supply and demand are relatively elastic

supply is elastic, and demand is perfectly inelastic

demand is elastic, and demand is perfectly inelastic

37 / 50

Which of the following is a normative statement in economics ?

More spending by the government reduces poverty

The government should concentrate on reducing unemployment

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

Higher taxes lead to less desire to work

38 / 50

High and persistent inflation is caused by ?

regulations raising the cost of production too much

unions increasing wages too much

governments increasing the quantity of money too much

OPEC raising the price of oil too much

39 / 50

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

sect

ecclesia or universal church

cult

denomination

40 / 50

Secularization will_______________?

finally destroy religion in the United States

promote secular humanism

stimulate new sects and cults to overcome the secularization process

be punished by God

41 / 50

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

Social involvement

Ethical neutrality

Courage

Patience

42 / 50

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

tend to be very unstable from year to year

fluctuate about as much as the prices of manufactured goods

have been more stable than the prices of manufactured goods

have been steadily rising in recent decades

43 / 50

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

The velocity of circulation and the number of transactions is constant

There is deflation

The velocity of circulation decrease

The number of transaction decrease

44 / 50

Arguments for free trade are sometimes disregarded by politicians because ?

Maximizing domestic efficiency is not considered imports

Economists tend to favor high protected domestic markets

Maximizing consumer welfare may not be a chief priority

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

45 / 50

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

decrease the demand for money

increase the money supply

increase the demand for money

decrease the money supply

46 / 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 risen

must have stayed the same

must have fallen

47 / 50

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

merit goods are produced

there are externalities

there is excess demand

inflation occurs

48 / 50

The most common form of marriage today is_______________?

polygyny

none of these

polygamy

polyandry

49 / 50

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

Major Index

NASDAQ

Nikki Index

Dow Jones Index

50 / 50

Nominal GNP measures income ?

At the present time

corrected for changes in interest rates

At current prices

corrected for tax changes

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