Economics Quiz 17

1 / 50

The relationship of organisms to their environments is called________________?

astral

physical

chemical

ecological

2 / 50

Which country possesses the largest foreign exchange reserves in the world ?

Japan

Germany

Canada

USA

3 / 50

Which of the following brings about cultural change_________________?

new art forms

scientific discoveries

all of the above

technological invention

4 / 50

An increase in interest rates ?

Leads to a shift in the MEC schedule

Leads to a movement along the MEC schedule

Is likely to reduce the external value of the currency

Is likely to reduce savings

5 / 50

Schizophrenia is_______________?

another name for split personality

a term meaning ?to hallucinate?

applied to a number of disturbances for lack of any other label

a psychosomatic disorder

6 / 50

According to the Laffer curve, as tax rates increase tax revenue ?

initially decrease and then increase.

decrease continuously.

rise continuously

initially increase and then decrease

7 / 50

A production subsidy that is granted to a producer of an import-competing good ?

yields the same deadweight welfare loss as an import tariff or import quota

has only a consumption effect deadweight loss

has only a protective effect deadweight loss

does not require government taxes to finance it

8 / 50

The most efficient pollution control system would ensure that ?

each polluter reduces its pollution an equal amount

the regulators decide how much each polluter should reduce its pollution.

the polluters with the lowest cost of reducing pollution reduce their pollution the greatest amount

no pollution of the environment is tolerated

9 / 50

Total injection are made up of?

investment + tax + exports

investment + government expenditure + imports

savings + government expenditure + exports

investment + government expenditure + exports

10 / 50

What is called the difference in the money value between exports and imports during the specific period of time ?

Balance sheet

Terms of trade

Balance of payment

Balance of trade

11 / 50

If the marginal rate of tax is 40% and consumers income increase from Rs10,000 to Rs12,000 ?

The amount of tax paid will increase by Rs4,000

The total tax paid will be Rs4,800

The amount of tax paid will increase by Rs4,800

The amount of tax paid will increase by Rs 800

12 / 50

A negative externality (that has not been internalized) causes the ?

equilibrium quantity to exceed the optimal quantity

equilibrium quantity to equal the optimal quantity

optimal quantity to exceed the equilibrium quantity.

equilibrium quantity to be either above or below the optimal quantity

13 / 50

A _______ allows a specified number of goods to be imported each year, and it not specifies from where the product is shipped and who is permitted to import ?

global quota

selective quota

import quota

export quota

14 / 50

The greatest advantage of a negative income tax is that it ?

generates a smaller disincentive to work than most alternative anti-poverty policies.

reduces the cost to the government of fighting poverty

ensures that the poor actually receive what the government thinks they need does all these answers.

would not provide benefits to lazy people

15 / 50

In terms of execution style a family seated at the dinner table enjoying the advertised product would be an example of which of the following types of advertising ?

Personality symbol

Slice of life

Lifestyle

Mood or imagery

16 / 50

Suppose that a Swiss television set that costs 400 francs in Switzerland cost $200 in the United States. The exchange rate between the franc and the dollar is ?

2 francs per dollar

$2 per franc

$3 per franc

1 franc per dollar

17 / 50

Studies have found that__________________?

the more severe the abuse the more extreme the later psychiatric symptoms

victims of child abuse become troubled adults

all of the above

not all abused children go on to abuse their own children

18 / 50

A negative externality generates ?

a social cost curve that is below the supply curve (private cost curve) for a good

none of these answers

a social value curve that is above the demand curve (private value curve) for a good

a social cost curve that is below the supply curve (private cost curve) for a good

19 / 50

Goods that satisfy human wants though their direct use or consumption are called______________?

consumer goods

cash goods

consumer items

cash items

20 / 50

Malthus?s theory was that population ?

increased stagnantly with food supply and economic development

increased disproportionately surpassing agricultural production

increased proportionally to economic growth

increased geometrically, outstripping food supply which grew arithmetically

21 / 50

The study of a company?s accounting statements and future prospects to determine its value is known as ?

diversification

fundamental analysis

risk management

information analysis

22 / 50

Deviance that has not been discovered is called ?

secondary deviance

final deviance

primary deviance

sinful deviance

23 / 50

The government is considering placing a tax on cigarettes to raise revenue to finance health-care benefits. The demand for cigarettes is price inelastic Which of the following statements is True ?

The tax on cigarettes may not raise as much revenue as anticipated in the years to com because the demand for cigarettes is likely to become more elastic over time.

No tax revenue can be raised in this way because sellers of cigarette will just lower their price by the amount of the tax and therefore, the price of cigarettes to consumers will not change

This tax will not raise much revenue either in the short term or the long term since demand is price inelastic

This a very good way to raise revenue both in the short term and in the long term, because there are no substitutes for cigarettes.

24 / 50

According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?

similar wage levels

similar endowments of natural resources

similar per-capita incomes

similar levels of technology

25 / 50

The stock of knowledge, skills and talents that people possess is called ?

training investment

human capital

skill capital

skill-building investment

26 / 50

Name the method of inventory accounting in which the oldest remaining items are assumed to have been first sold ?

First come First serve

LAFO (last in first out)

None of these

FIFO (first in first out)

27 / 50

When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?

trade creation and trade diversion

trade channeling

trade diversion

trade creation

28 / 50

The exchange rate is kept the same across geographically separate markets by ?

speculation

hedging

arbitrage

government regulation

29 / 50

Suppose a project results in a net stream of $200 per year for 4 years, but nothing thereafter, Assume that the discount rate is 5 percent. The discounted value of the total income stream over the 4-year period is ?

less than zero

800

40,000

more than zero but less than 800

30 / 50

An oligopoly with a dominant price leader will produce a level of output ?

between that which would prevail under competition and that which a monopolistic competitor would choose in the same industry.

between that which would prevail under competition and that which a monopolist would choose in the same industry

equal to what a monopolist would choose in the same industry

that would prevail under competition

31 / 50

The instruments of foreign policy may be defined as_________________?

exchanges entered into in the spirit of trust

tools with which nations try to manipulate other nations

expressions of human solidarity around the world

ways of competing for the title of superpower

32 / 50

Which is an example of a subculture ?

teenage customs

American culture

Kiwi culture

French culture

33 / 50

The natural rate of unemployment is generally thought of as the ?

Sum of structural unemployment and cyclical unemployment.

sum of frictional unemployment and structural unemployment.

ratio of the frictional unemployment rate to the cyclical unemployment rate.

Sum of frictional unemployment and cyclical unemployment

34 / 50

Burning your neighbor?s house down is considered a serious offense It is a violation of_____________?

taboos

table manners

folkways

35 / 50

Space Satellite Badr II was launched on December 10, 2001 when Pakistan launched Pak Sat I ?

29-Dec-02

25-Dec-02

15-Feb-03

25-Jan-03

36 / 50

In contestable markets, large oligopolistic firms, end up behaving like ?

a monopoly

a cartel

monopolistically competitive firms.

perfectly competitive firms

37 / 50

International specialization takes place because of______________?

differences in technology

differences in factor endowments

scale economies

All of the above

38 / 50

If a nation?s interest rates are relatively low compared to those of other countries then the exchange value of its currency will tend to ?

depreciate under a system of floating exchange rates

depreciate under a system of fixed exchange rates

appreciate under a system of floating fixed rates

appreciate under a system of floating exchange rates

39 / 50

For a perfectly competitive firm ?

price is greater than marginal revenue

price equals total revenue

Price equals marginal revenue

price equals total cost

40 / 50

Which of the following is not part of a worker?s human capital ?

all of these answers are parts of a worker?s human capital

education

effort

experience

41 / 50

Political control refers to________________?

social control exercised by peers

any social control

social control exercised by the government

being forced to vote

42 / 50

What is called the centers around the ability of a national economy to generate enough interests and principal on its foreign debt ?

Country finance risk

Foreign exchange risk

National economic risk

Country economic risk

43 / 50

The government engages in a technology policy ?

to internalize the negative externality associated with industrial pollution

by allocating tradable technology permits to high technology industry.

to help stimulate private solution to the technology externality

to internalize the positive externality associated with technology-enhancing industries.

44 / 50

Suppose that U.S dollar depreciates 70 percent against the yen yet Japanese export prices to Americans did not decrease by the full extent of the dollar depreciation. This is best explained by ?

complete currency pass through

partial currency pass through

partial J curve effect

complete J curve effect

45 / 50

Which of the following is Price of the last transaction of a particular stock completed during a day?s trading session on an exchange ?

End price

Closing Price

Final price

Night Price

46 / 50

A decrease in demand for a products should ?

Decrease equilibrium price and quantity

Decrease equilibrium price and increase quantity

Increase equilibrium price and decrease quantity

increase equilibrium price and quantity

47 / 50

Anything that can be offered to a market for attention acquisition, use, or consumption that might satisfy a want or need is called a(n) ?

demand

idea

product

service

48 / 50

The Protestant Ethic supported capitalism through the religious doctrine that praised_________________?

hard work and thrift

predestination

turning the other cheek

buying indulgences

49 / 50

Real GDP is measured in __________ prices while nominal GDP is measured in _________ prices?

base year; current year

foreign; domestic

domestic; foreign

current year; base year

50 / 50

Why has the growth of the German and Japanese economies after World War|| not been repeated in LDCs ?

real domestic currency depreciation exists

political instability inhibits world-wide investment

low interest rates

human capital or technical skills were lacking

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