Economics Quiz 17

1 / 50

Political control refers to________________?

any social control

social control exercised by the government

social control exercised by peers

being forced to vote

2 / 50

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

would not provide benefits to lazy people

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

reduces the cost to the government of fighting poverty

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

3 / 50

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

current year; base year

foreign; domestic

base year; current year

domestic; foreign

4 / 50

Schizophrenia is_______________?

another name for split personality

a psychosomatic disorder

a term meaning ?to hallucinate?

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

5 / 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

Final price

Night Price

Closing Price

6 / 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

7 / 50

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

National economic risk

Foreign exchange risk

Country finance risk

Country economic risk

8 / 50

The relationship of organisms to their environments is called________________?

physical

chemical

ecological

astral

9 / 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

human capital or technical skills were lacking

low interest rates

10 / 50

International specialization takes place because of______________?

differences in technology

All of the above

differences in factor endowments

scale economies

11 / 50

Total injection are made up of?

investment + tax + exports

investment + government expenditure + imports

investment + government expenditure + exports

savings + government expenditure + exports

12 / 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.

that would prevail under competition

equal to what a monopolist would choose in the same industry

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

13 / 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 endowments of natural resources

similar per-capita incomes

similar wage levels

14 / 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 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 Rs 800

15 / 50

Malthus?s theory was that population ?

increased disproportionately surpassing agricultural production

increased proportionally to economic growth

increased geometrically, outstripping food supply which grew arithmetically

increased stagnantly with food supply and economic development

16 / 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 J curve effect

partial currency pass through

complete J curve effect

17 / 50

Which of the following brings about cultural change_________________?

technological invention

new art forms

all of the above

scientific discoveries

18 / 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 ?

more than zero but less than 800

800

less than zero

40,000

19 / 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 fixed rates

depreciate under a system of floating exchange rates

depreciate under a system of fixed exchange rates

appreciate under a system of floating exchange rates

20 / 50

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

monopolistically competitive firms.

perfectly competitive firms

a cartel

a monopoly

21 / 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 and trade diversion

trade channeling

trade creation

22 / 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

$3 per franc

2 francs per dollar

$2 per franc

23 / 50

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

equilibrium quantity to equal the optimal quantity

equilibrium quantity to exceed the optimal quantity

optimal quantity to exceed the equilibrium quantity.

equilibrium quantity to be either above or below the optimal quantity

24 / 50

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

25-Jan-03

25-Dec-02

15-Feb-03

29-Dec-02

25 / 50

The government engages in a technology policy ?

to help stimulate private solution to the technology externality

by allocating tradable technology permits to high technology industry.

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

to internalize the negative externality associated with industrial pollution

26 / 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

27 / 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

has only a protective effect deadweight loss

does not require government taxes to finance it

28 / 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

29 / 50

Which is an example of a subculture ?

French culture

Kiwi culture

teenage customs

American culture

30 / 50

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

arbitrage

speculation

government regulation

hedging

31 / 50

For a perfectly competitive firm ?

Price equals marginal revenue

price equals total revenue

price is greater than marginal revenue

price equals total cost

32 / 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 ?

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.

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.

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

33 / 50

Deviance that has not been discovered is called ?

primary deviance

sinful deviance

final deviance

secondary deviance

34 / 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)

First come First serve

None of these

FIFO (first in first out)

35 / 50

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

rise continuously

initially decrease and then increase.

initially increase and then decrease

decrease continuously.

36 / 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

37 / 50

An increase in interest rates ?

Leads to a movement along the MEC schedule

Is likely to reduce the external value of the currency

Leads to a shift in the MEC schedule

Is likely to reduce savings

38 / 50

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

human capital

skill-building investment

skill capital

training investment

39 / 50

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

Germany

USA

Japan

Canada

40 / 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

41 / 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

Personality symbol

Lifestyle

Slice of life

42 / 50

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

folkways

table manners

taboos

43 / 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 ?

import quota

selective quota

export quota

global quota

44 / 50

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

cash goods

consumer items

consumer goods

cash items

45 / 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

46 / 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

47 / 50

A decrease in demand for a products should ?

Decrease equilibrium price and quantity

Increase equilibrium price and decrease quantity

increase equilibrium price and quantity

Decrease equilibrium price and increase quantity

48 / 50

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

diversification

fundamental analysis

information analysis

risk management

49 / 50

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

effort

education

experience

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

50 / 50

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

predestination

turning the other cheek

hard work and thrift

buying indulgences

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