Economics Quiz 17

1 / 50

The most efficient pollution control system would ensure that ?

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

each polluter reduces its pollution an equal amount

no pollution of the environment is tolerated

2 / 50

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

a cartel

monopolistically competitive firms.

a monopoly

perfectly competitive firms

3 / 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

4 / 50

Deviance that has not been discovered is called ?

secondary deviance

sinful deviance

primary deviance

final deviance

5 / 50

Total injection are made up of?

investment + government expenditure + imports

savings + government expenditure + exports

investment + government expenditure + exports

investment + tax + exports

6 / 50

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

folkways

taboos

table manners

7 / 50

Malthus?s theory was that population ?

increased geometrically, outstripping food supply which grew arithmetically

increased stagnantly with food supply and economic development

increased disproportionately surpassing agricultural production

increased proportionally to economic growth

8 / 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

product

demand

service

9 / 50

Which of the following brings about cultural change_________________?

new art forms

scientific discoveries

all of the above

technological invention

10 / 50

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

cash items

cash goods

consumer items

consumer goods

11 / 50

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

Germany

USA

Canada

Japan

12 / 50

For a perfectly competitive firm ?

price equals total cost

price is greater than marginal revenue

Price equals marginal revenue

price equals total revenue

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

export quota

selective quota

import quota

14 / 50

Schizophrenia is_______________?

a term meaning ?to hallucinate?

another name for split personality

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

a psychosomatic disorder

15 / 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.

16 / 50

An increase in interest rates ?

Is likely to reduce savings

Is likely to reduce the external value of the currency

Leads to a shift in the MEC schedule

Leads to a movement along the MEC schedule

17 / 50

Political control refers to________________?

social control exercised by peers

being forced to vote

social control exercised by the government

any social control

18 / 50

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

risk management

information analysis

diversification

fundamental analysis

19 / 50

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

Balance of payment

Balance of trade

Terms of trade

Balance sheet

20 / 50

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

hard work and thrift

predestination

buying indulgences

turning the other cheek

21 / 50

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

sum of frictional unemployment and structural unemployment.

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

Sum of structural unemployment and cyclical unemployment.

Sum of frictional unemployment and cyclical unemployment

22 / 50

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

does not require government taxes to finance it

has only a protective effect deadweight loss

has only a consumption effect deadweight loss

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

23 / 50

International specialization takes place because of______________?

differences in factor endowments

differences in technology

All of the above

scale economies

24 / 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

40,000

800

more than zero but less than 800

25 / 50

Studies have found that__________________?

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

all of the above

not all abused children go on to abuse their own children

victims of child abuse become troubled adults

26 / 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 levels of technology

similar endowments of natural resources

similar per-capita incomes

27 / 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 ?

1 franc per dollar

2 francs per dollar

$3 per franc

$2 per franc

28 / 50

The government engages in a technology policy ?

to internalize the negative externality associated with industrial pollution

to help stimulate private solution to the technology externality

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

by allocating tradable technology permits to high technology industry.

29 / 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 ?

partial J curve effect

complete J curve effect

complete currency pass through

partial currency pass through

30 / 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

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

that would prevail under competition

31 / 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 ?

Night Price

Final price

Closing Price

End price

32 / 50

Which is an example of a subculture ?

teenage customs

Kiwi culture

French culture

American culture

33 / 50

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

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

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

reduces the cost to the government of fighting poverty

would not provide benefits to lazy people

34 / 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 diversion

trade creation

trade channeling

trade creation and trade diversion

35 / 50

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

LAFO (last in first out)

FIFO (first in first out)

First come First serve

None of these

36 / 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 fixed exchange rates

appreciate under a system of floating exchange rates

depreciate under a system of floating exchange rates

appreciate under a system of floating fixed rates

37 / 50

A decrease in demand for a products should ?

Decrease equilibrium price and increase quantity

Decrease equilibrium price and quantity

increase equilibrium price and quantity

Increase equilibrium price and decrease quantity

38 / 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

39 / 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.

40 / 50

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

low interest rates

real domestic currency depreciation exists

human capital or technical skills were lacking

political instability inhibits world-wide investment

41 / 50

The instruments of foreign policy may be defined as_________________?

exchanges entered into in the spirit of trust

ways of competing for the title of superpower

tools with which nations try to manipulate other nations

expressions of human solidarity around the world

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

Country economic risk

Foreign exchange risk

National economic risk

43 / 50

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

effort

experience

education

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

44 / 50

The relationship of organisms to their environments is called________________?

chemical

astral

physical

ecological

45 / 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

46 / 50

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

initially decrease and then increase.

rise continuously

initially increase and then decrease

decrease continuously.

47 / 50

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

skill-building investment

training investment

human capital

skill capital

48 / 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 ?

Mood or imagery

Slice of life

Personality symbol

Lifestyle

49 / 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 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 Rs4,000

50 / 50

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

hedging

arbitrage

speculation

government regulation

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