Economics Quiz 17

1 / 50

For a perfectly competitive firm ?

Price equals marginal revenue

price is greater than marginal revenue

price equals total cost

price equals total revenue

2 / 50

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

equal to what a monopolist would choose in the same industry

that would prevail under competition

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

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

3 / 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 ?

40,000

less than zero

more than zero but less than 800

800

4 / 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 ?

appreciate under a system of floating exchange rates

appreciate under a system of floating fixed rates

depreciate under a system of fixed exchange rates

depreciate under a system of floating exchange rates

5 / 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.

6 / 50

Schizophrenia is_______________?

a term meaning ?to hallucinate?

another name for split personality

a psychosomatic disorder

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

7 / 50

The instruments of foreign policy may be defined as_________________?

tools with which nations try to manipulate other nations

exchanges entered into in the spirit of trust

expressions of human solidarity around the world

ways of competing for the title of superpower

8 / 50

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

speculation

hedging

arbitrage

government regulation

9 / 50

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

consumer items

cash items

cash goods

consumer goods

10 / 50

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

education

experience

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

effort

11 / 50

A decrease in demand for a products should ?

Increase equilibrium price and decrease quantity

increase equilibrium price and quantity

Decrease equilibrium price and increase quantity

Decrease equilibrium price and quantity

12 / 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.

no pollution of the environment is tolerated

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

13 / 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 ?

Final price

Night Price

End price

Closing Price

14 / 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

equilibrium quantity to be either above or below the optimal quantity

optimal quantity to exceed the equilibrium quantity.

15 / 50

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

low interest rates

human capital or technical skills were lacking

political instability inhibits world-wide investment

real domestic currency depreciation exists

16 / 50

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

initially decrease and then increase.

rise continuously

decrease continuously.

initially increase and then decrease

17 / 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 trade

Balance of payment

18 / 50

Which of the following brings about cultural change_________________?

technological invention

scientific discoveries

new art forms

all of the above

19 / 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 ?

Slice of life

Personality symbol

Mood or imagery

Lifestyle

20 / 50

A negative externality generates ?

none of these answers

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

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

21 / 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

import quota

selective quota

export quota

22 / 50

Deviance that has not been discovered is called ?

sinful deviance

secondary deviance

primary deviance

final deviance

23 / 50

An increase in interest rates ?

Leads to a movement along the MEC schedule

Is likely to reduce the external value of the currency

Is likely to reduce savings

Leads to a shift in the MEC schedule

24 / 50

Political control refers to________________?

social control exercised by the government

any social control

being forced to vote

social control exercised by peers

25 / 50

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

Foreign exchange risk

Country finance risk

National economic risk

Country economic risk

26 / 50

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

Sum of structural unemployment and cyclical unemployment.

Sum of frictional unemployment and cyclical unemployment

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

sum of frictional unemployment and structural unemployment.

27 / 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 J curve effect

partial currency pass through

partial J curve effect

complete currency pass through

28 / 50

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

has only a consumption effect deadweight loss

does not require government taxes to finance it

has only a protective effect deadweight loss

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

29 / 50

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

predestination

buying indulgences

turning the other cheek

hard work and thrift

30 / 50

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

Germany

Canada

Japan

USA

31 / 50

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

25-Dec-02

29-Dec-02

15-Feb-03

25-Jan-03

32 / 50

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

None of these

FIFO (first in first out)

First come First serve

LAFO (last in first out)

33 / 50

The relationship of organisms to their environments is called________________?

ecological

chemical

astral

physical

34 / 50

Which is an example of a subculture ?

Kiwi culture

American culture

French culture

teenage customs

35 / 50

Studies have found that__________________?

all of the above

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

not all abused children go on to abuse their own children

victims of child abuse become troubled adults

36 / 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

37 / 50

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

folkways

table manners

taboos

38 / 50

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

risk management

information analysis

fundamental analysis

diversification

39 / 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) ?

idea

service

demand

product

40 / 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 per franc

$3 per franc

1 franc per dollar

2 francs per dollar

41 / 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 Rs 800

The amount of tax paid will increase by Rs4,800

The total tax paid will be Rs4,800

The amount of tax paid will increase by Rs4,000

42 / 50

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

training investment

skill capital

human capital

skill-building investment

43 / 50

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

a cartel

monopolistically competitive firms.

a monopoly

perfectly competitive firms

44 / 50

International specialization takes place because of______________?

All of the above

differences in technology

differences in factor endowments

scale economies

45 / 50

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

similar levels of technology

similar per-capita incomes

similar endowments of natural resources

similar wage levels

46 / 50

Total injection are made up of?

investment + government expenditure + exports

savings + government expenditure + exports

investment + government expenditure + imports

investment + tax + exports

47 / 50

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

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

would not provide benefits to lazy people

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.

48 / 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 ?

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.

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.

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

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

49 / 50

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

domestic; foreign

current year; base year

foreign; domestic

base year; current year

50 / 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

trade diversion

trade channeling

trade creation and trade diversion

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