Economics Quiz 17

1 / 50

Which is an example of a subculture ?

American culture

teenage customs

Kiwi culture

French culture

2 / 50

Which of the following brings about cultural change_________________?

new art forms

technological invention

all of the above

scientific discoveries

3 / 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

4 / 50

If the marginal rate of tax is 40% and consumers income increase from Rs10,000 to Rs12,000 ?

The total tax paid will be Rs4,800

The amount of tax paid will increase by Rs 800

The amount of tax paid will increase by Rs4,000

The amount of tax paid will increase by Rs4,800

5 / 50

Deviance that has not been discovered is called ?

sinful deviance

primary deviance

secondary deviance

final deviance

6 / 50

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

a cartel

perfectly competitive firms

monopolistically competitive firms.

a monopoly

7 / 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

8 / 50

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

consumer goods

consumer items

cash goods

cash items

9 / 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

Lifestyle

Personality symbol

Slice of life

10 / 50

Political control refers to________________?

social control exercised by peers

social control exercised by the government

any social control

being forced to vote

11 / 50

Studies have found that__________________?

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

victims of child abuse become troubled adults

12 / 50

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

low interest rates

political instability inhibits world-wide investment

human capital or technical skills were lacking

real domestic currency depreciation exists

13 / 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)

LAFO (last in first out)

None of these

First come First serve

14 / 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 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.

15 / 50

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

fundamental analysis

risk management

diversification

information analysis

16 / 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

17 / 50

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

current year; base year

domestic; foreign

foreign; domestic

base year; current year

18 / 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

19 / 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

20 / 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

less than zero

40,000

21 / 50

International specialization takes place because of______________?

differences in technology

scale economies

differences in factor endowments

All of the above

22 / 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

23 / 50

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

Germany

USA

Canada

Japan

24 / 50

An increase in interest rates ?

Is likely to reduce savings

Leads to a movement along the MEC schedule

Leads to a shift in the MEC schedule

Is likely to reduce the external value of the currency

25 / 50

For a perfectly competitive firm ?

Price equals marginal revenue

price is greater than marginal revenue

price equals total revenue

price equals total cost

26 / 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

export quota

global quota

selective quota

27 / 50

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

table manners

taboos

folkways

28 / 50

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

Balance of trade

Balance of payment

Terms of trade

Balance sheet

29 / 50

Total injection are made up of?

investment + tax + exports

investment + government expenditure + exports

savings + government expenditure + exports

investment + government expenditure + imports

30 / 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

31 / 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 creation

trade diversion

trade channeling

32 / 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

33 / 50

A negative externality generates ?

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

none of these answers

34 / 50

Schizophrenia is_______________?

another name for split personality

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

a psychosomatic disorder

a term meaning ?to hallucinate?

35 / 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

depreciate under a system of floating exchange rates

appreciate under a system of floating fixed rates

appreciate under a system of floating exchange rates

36 / 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

Country finance risk

National economic risk

37 / 50

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

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.

would not provide benefits to lazy people

38 / 50

Malthus?s theory was that population ?

increased geometrically, outstripping food supply which grew arithmetically

increased proportionally to economic growth

increased disproportionately surpassing agricultural production

increased stagnantly with food supply and economic development

39 / 50

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

arbitrage

government regulation

speculation

hedging

40 / 50

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

predestination

buying indulgences

hard work and thrift

turning the other cheek

41 / 50

A decrease in demand for a products should ?

Decrease equilibrium price and quantity

Decrease equilibrium price and increase quantity

increase equilibrium price and quantity

Increase equilibrium price and decrease quantity

42 / 50

The relationship of organisms to their environments is called________________?

physical

chemical

ecological

astral

43 / 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) ?

demand

idea

service

product

44 / 50

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

25-Jan-03

15-Feb-03

29-Dec-02

25-Dec-02

45 / 50

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

rise continuously

initially increase and then decrease

decrease continuously.

initially decrease and then increase.

46 / 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

Night Price

Final price

47 / 50

The instruments of foreign policy may be defined as_________________?

ways of competing for the title of superpower

tools with which nations try to manipulate other nations

exchanges entered into in the spirit of trust

expressions of human solidarity around the world

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 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

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.

49 / 50

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

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

equilibrium quantity to equal the optimal quantity

50 / 50

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

skill-building investment

training investment

human capital

skill capital

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