Economics Quiz 17

1 / 50

The most efficient pollution control system would ensure that ?

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

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

each polluter reduces its pollution an equal amount

no pollution of the environment is tolerated

2 / 50

A decrease in demand for a products should ?

Decrease equilibrium price and increase quantity

Decrease equilibrium price and quantity

Increase equilibrium price and decrease quantity

increase equilibrium price and quantity

3 / 50

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

FIFO (first in first out)

First come First serve

LAFO (last in first out)

None of these

4 / 50

The instruments of foreign policy may be defined as_________________?

expressions of human solidarity around the world

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

5 / 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.

6 / 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 channeling

trade creation

trade creation and trade diversion

7 / 50

A negative externality generates ?

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

none of these answers

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

8 / 50

For a perfectly competitive firm ?

Price equals marginal revenue

price is greater than marginal revenue

price equals total cost

price equals total revenue

9 / 50

Which of the following brings about cultural change_________________?

new art forms

scientific discoveries

all of the above

technological invention

10 / 50

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

perfectly competitive firms

a monopoly

a cartel

monopolistically competitive firms.

11 / 50

Political control refers to________________?

social control exercised by peers

any social control

social control exercised by the government

being forced to vote

12 / 50

Total injection are made up of?

savings + government expenditure + exports

investment + tax + exports

investment + government expenditure + exports

investment + government expenditure + imports

13 / 50

Schizophrenia is_______________?

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

a psychosomatic disorder

another name for split personality

a term meaning ?to hallucinate?

14 / 50

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

Sum of frictional unemployment and cyclical unemployment

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.

15 / 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 ?

selective quota

global quota

export quota

import quota

16 / 50

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

speculation

hedging

government regulation

arbitrage

17 / 50

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

folkways

table manners

taboos

18 / 50

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

information analysis

fundamental analysis

diversification

risk management

19 / 50

Malthus?s theory was that population ?

increased proportionally to economic growth

increased disproportionately surpassing agricultural production

increased geometrically, outstripping food supply which grew arithmetically

increased stagnantly with food supply and economic development

20 / 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

21 / 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

1 franc per dollar

$3 per franc

$2 per franc

22 / 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 ?

Closing Price

Night Price

End price

Final price

23 / 50

Which is an example of a subculture ?

American culture

Kiwi culture

French culture

teenage customs

24 / 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

25 / 50

International specialization takes place because of______________?

differences in technology

differences in factor endowments

All of the above

scale economies

26 / 50

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

skill-building investment

skill capital

training investment

human capital

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 ?

partial J curve effect

complete currency pass through

complete J curve effect

partial currency pass through

28 / 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

29 / 50

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

consumer items

consumer goods

cash goods

cash items

30 / 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.

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

31 / 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

Lifestyle

Mood or imagery

Personality symbol

32 / 50

An increase in interest rates ?

Is likely to reduce the external value of the currency

Leads to a movement along the MEC schedule

Leads to a shift in the MEC schedule

Is likely to reduce savings

33 / 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 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

34 / 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) ?

product

idea

demand

service

35 / 50

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

rise continuously

initially decrease and then increase.

decrease continuously.

initially increase and then decrease

36 / 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 endowments of natural resources

similar wage levels

similar levels of technology

37 / 50

The government engages in a technology policy ?

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.

to internalize the negative externality associated with industrial pollution

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 ?

appreciate under a system of floating fixed rates

depreciate under a system of floating exchange rates

appreciate under a system of floating exchange rates

depreciate under a system of fixed exchange rates

39 / 50

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

Balance sheet

Balance of trade

Balance of payment

Terms of trade

40 / 50

The relationship of organisms to their environments is called________________?

ecological

astral

physical

chemical

41 / 50

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

has only a consumption effect deadweight loss

has only a protective effect deadweight loss

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

does not require government taxes to finance it

42 / 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

43 / 50

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

predestination

turning the other cheek

hard work and thrift

buying indulgences

44 / 50

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

15-Feb-03

25-Dec-02

25-Jan-03

29-Dec-02

45 / 50

Deviance that has not been discovered is called ?

final deviance

secondary deviance

primary deviance

sinful deviance

46 / 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

47 / 50

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

experience

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

education

effort

48 / 50

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

base year; current year

domestic; foreign

current year; base year

foreign; domestic

49 / 50

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

Canada

Germany

Japan

USA

50 / 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

Provide Your Information

NameEmailPhone Number

Your score is

The average score is 0%