Economics Quiz 17

1 / 50

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

has only a consumption effect deadweight loss

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

does not require government taxes to finance it

has only a protective effect deadweight loss

2 / 50

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

Germany

Canada

Japan

USA

3 / 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.

Sum of frictional unemployment and cyclical unemployment

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

4 / 50

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

would not provide benefits to lazy people

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.

5 / 50

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

experience

education

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

effort

6 / 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.

7 / 50

Studies have found that__________________?

victims of child abuse become troubled adults

not all abused children go on to abuse their own children

all of the above

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

8 / 50

Schizophrenia is_______________?

a psychosomatic disorder

another name for split personality

a term meaning ?to hallucinate?

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

9 / 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 ?

800

more than zero but less than 800

40,000

less than zero

10 / 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) ?

service

product

demand

idea

11 / 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

Mood or imagery

Personality symbol

Lifestyle

12 / 50

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

cash items

consumer items

consumer goods

cash goods

13 / 50

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

optimal quantity to exceed the equilibrium quantity.

equilibrium quantity to be either above or below the optimal quantity

equilibrium quantity to exceed the optimal quantity

equilibrium quantity to equal the optimal quantity

14 / 50

Which of the following brings about cultural change_________________?

all of the above

scientific discoveries

new art forms

technological invention

15 / 50

For a perfectly competitive firm ?

Price equals marginal revenue

price equals total revenue

price equals total cost

price is greater than marginal revenue

16 / 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 Rs4,800

The amount of tax paid will increase by Rs 800

The amount of tax paid will increase by Rs4,000

The total tax paid will be Rs4,800

17 / 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.

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

18 / 50

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

predestination

hard work and thrift

buying indulgences

turning the other cheek

19 / 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)

20 / 50

Malthus?s theory was that population ?

increased stagnantly with food supply and economic development

increased proportionally to economic growth

increased geometrically, outstripping food supply which grew arithmetically

increased disproportionately surpassing agricultural production

21 / 50

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

diversification

information analysis

risk management

fundamental analysis

22 / 50

An increase in interest rates ?

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

Is likely to reduce savings

23 / 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 J curve effect

partial currency pass through

complete currency pass through

24 / 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

25 / 50

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

initially increase and then decrease

initially decrease and then increase.

decrease continuously.

rise continuously

26 / 50

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

monopolistically competitive firms.

a cartel

perfectly competitive firms

a monopoly

27 / 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 ?

export quota

global quota

selective quota

import quota

28 / 50

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

Country economic risk

Foreign exchange risk

National economic risk

Country finance risk

29 / 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 creation

trade diversion

30 / 50

The most efficient pollution control system would ensure that ?

no pollution of the environment is tolerated

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

each polluter reduces its pollution an equal amount

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

31 / 50

The instruments of foreign policy may be defined as_________________?

exchanges entered into in the spirit of trust

expressions of human solidarity around the world

ways of competing for the title of superpower

tools with which nations try to manipulate other nations

32 / 50

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

foreign; domestic

current year; base year

base year; current year

domestic; foreign

33 / 50

Total injection are made up of?

investment + government expenditure + imports

investment + government expenditure + exports

investment + tax + exports

savings + government expenditure + exports

34 / 50

Deviance that has not been discovered is called ?

sinful deviance

secondary deviance

final deviance

primary deviance

35 / 50

A decrease in demand for a products should ?

Decrease equilibrium price and quantity

Increase equilibrium price and decrease quantity

Decrease equilibrium price and increase quantity

increase equilibrium price and quantity

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

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

25-Dec-02

15-Feb-03

25-Jan-03

29-Dec-02

38 / 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 per franc

2 francs per dollar

$3 per franc

39 / 50

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

Balance of trade

Balance sheet

Balance of payment

Terms of trade

40 / 50

The relationship of organisms to their environments is called________________?

astral

chemical

ecological

physical

41 / 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 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.

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

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.

42 / 50

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

similar per-capita incomes

similar levels of technology

similar endowments of natural resources

similar wage levels

43 / 50

Political control refers to________________?

any social control

being forced to vote

social control exercised by peers

social control exercised by the government

44 / 50

International specialization takes place because of______________?

scale economies

differences in factor endowments

differences in technology

All of the above

45 / 50

Which is an example of a subculture ?

French culture

American culture

teenage customs

Kiwi culture

46 / 50

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

taboos

folkways

table manners

47 / 50

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

arbitrage

speculation

government regulation

hedging

48 / 50

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

political instability inhibits world-wide investment

real domestic currency depreciation exists

low interest rates

human capital or technical skills were lacking

49 / 50

A negative externality generates ?

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

none of these answers

50 / 50

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

human capital

skill-building investment

training investment

skill capital

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