Economics Quiz 18

1 / 50

According to the law of demand. When ?

Price increased demand increases

Price decreases demand decreases

Price increase demand decreases

None of these

2 / 50

Rawls?s suggestion that policy should be directed at maximizing the welfare of the least well off person in society is derived from ?

the idea that everyone in society should have an equal income

the idea that people a veil of ignorance as policy as if behind a veil of ignorance as to what their circumstances might be in society, and the ignorant people should be looked after

the idea that people should consider policy as if behind a veil of ignorance as to what their circumstances might be in society, and the idea that people will then be particularly concerned about the possibility that they might find themselves at the bottom of the income distribution

the idea that people should consider policy as if behind a veil of ignorance as to what their circumstances might be in society, and the idea that as long as there is no theft then there is no need for governments to intervene and redistribute income.

3 / 50

If the price of good is equal to the equilibrium price ?

there is a shortage and the price will rise

the quantity demanded is equal to the quantity supplied supplied and the price remains unchanged

there is a shortage and the price will fall

there is surplus and the price will rise

4 / 50

The Coase theorem states that ?

if there are external costs in production the government must intervene in the market to assure that the efficient level of output is produced

public goods should be produced up to the point where the additional benefit received by society equals the additional cost of producing the good

under certain conditions, private parties can arrive at the efficient solution without government involvement

the private sector will fail to produce the efficient amount of a public good because of the free-rider problem.

5 / 50

A detailed investigation of a single social unit in order to study it in depth is______________?

laboratory experiment

sample survey

participant observation

a case studies

6 / 50

The density of population in Baluchistan is ?

28 per sq. Km

18 per sq. Km

59 per sq. Km

39 per sq. Km

7 / 50

The type of sales presentation approach that requires good listening and problem-solving skills is the ?

need-satisfaction approach

formula appraoch

canned approach

critical-thinking approach

8 / 50

Black volcanic soil and tropical climate is most suitable without excess rainfall for which crop ?

Tobacco

jute

None of them

Cotton

9 / 50

According to the Office of National Statistics UK, a husband who chooses to stay home and take care of household is ?

Employed

A discouraged worker

Not in the labour force

Unemployed

10 / 50

A condition of normlessness and separation from legitimate modes of behavior is termed___________?

alienation

anomie

trauma

anomaly

11 / 50

In the presences of purchasing power parity, if one-dollar exchanges for 2 British pounds and if a DVD player costs $400 in the United States then in Britain the DVD player should cost ?

800 pounds

400 pounds

600 pounds

200 pounds

12 / 50

The largest producer of Tobacco in the world is ?

China

USA

India

Russia

13 / 50

The share of sugarcane crop in value added in agriculture is 6.3 percent What is the share in GDP ?

1.50%

5.10%

14 / 50

Pakistan is the _____largest Producer country in the world?

Fifth

Seventh

Fourth

Sixth

15 / 50

For the oil-importing countries, the increase in oil prices in 1970s and early 2000s contributed to all of the following except ?

price inflation

balance of trade deficits

improving terms of trade

constrained economic growth

16 / 50

Which of the following should cause the price of a share of stock to rise ?

A reduction in aggregate risk

All of these answers

None of these answers

An increase in expected dividends

17 / 50

Suburban growth was based on___________________?

expensive suburban property

movement of factories out of the cities

the development of automobile travel

wartime industrial expansions

18 / 50

Suppose there is an increase in both the supply and demand for personal computers. In the market for personal computers, we would expect?

the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous.

the equilibrium quantity to rise and the equilibrium price to fall

the equilibrium quantity to rise and the equilibrium price to remain constant

the equilibrium quantity to rise and the equilibrium price to rise

19 / 50

If the income tax rate changes from 30% to 40% on income over Rs30,000 and a person?s income is Rs 31,000 then her marginal tax rate is ?

70%

40%

10%

30%

20 / 50

What is called interest payments plus repayments of principal to creditors ?

Debt service

Payback

Debt relief

Debt retirement

21 / 50

Unions tend to increase the disparity in pay between insiders and outsiders by ?

Increasing the wage in the Unionized sector which may create an increase in the supply of workers in the non-unionized sector

Increasing the demand for workers in the Unionized sector

decreasing the demand for workers in the Unionized sector

increasing the wage in the Unionized sector, Which may create a decrease in the supply of workers in the non-unionized sector

22 / 50

In autarky, when a community maximizes its standard of living its production point is ?

can?t tell without more information

on the production possibility frontier

above the production possibility frontier

below the production possibility frontier

23 / 50

Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The economics profit at Naila?s pottery factory is ?

Rs70,000

Rs80,000

Rs30,000

Rs75,000

24 / 50

The term ?Dumping? means ?

The sale of the sub-standard commodity

Sale in a foreign market of a commodity just at marginal cost without too much of profit

Smuggling of goods without paying any customs duty

Sale in a foreign market of a commodity at a price below marginal cost

25 / 50

The total forest area of Pakistan is estimated at ?

5.20 million hectares

53.20 million hectares

6.20 million hectares

4.20 million hectares

26 / 50

The jobs of the future will include______________?

All but A

personal services

routine services

steel workers

27 / 50

An example of an indirect tax is ?

inheritance tax

income tax

a tax on profits.

VAT

28 / 50

An example of a basic pivotal institution is_____________?

the family

gossip

show business

sports

29 / 50

Which of the following will not shift a country?s production possibilities frontier outward ?

an increase in the labor force

a reduction in unemployment

an advance in technology

an increase in the capital stock

30 / 50

When people?s beliefs about the inferiority of a certain group undergo change the process is called________________?

political change

social change

radical change

cultural change

31 / 50

In monopoly in long run equilibrium ?

The firm is allocatively inefficient

The firm produces where marginal cost is less than marginal revenue

The firm is Productively efficient

The firm produces at the socially optimal level

32 / 50

A seller of goods or services writes a bill that is submitted to a purchaser for payment. What this bill is called?

Demand draft

Bill of Intent

Invoice

Draft

33 / 50

Which of the following is a form of international reserve assets, created by IMF in 1967 whose value is based on a portfolio of widely used currencies ?

International Drawing Right (IDR)

IMF Drawing Rights (SDR)

Special Drawing Right (SDR)

Sure, Drawing Rights (SDR)

34 / 50

Hard currency is defined as ?

Currency Which is used in times of war

None of these

Currency traded in foreign exchange market for which demand is persistently relative to the supply

Currency which loses its value very fast

35 / 50

Throughout the 1800?s Russia was interested in acquiring Turkey mainly because Russia wanted ?

to main peace in the Middle East

to reestablish the Byzantine Empire

access to the Mediterranean Sea

The rich farmland of the Anatolian Plateau

36 / 50

A general in an army chart of command positions would constitute a______________?

status

role

institution

norm

37 / 50

Which is the largest cotton producing country in the world ?

China

USA

India

Egypt

38 / 50

As the wage rate per hour increases, the opportunity cost of leisure ?

decreases since the customer now has more income to spend

increases since the cost of forgoing one hour of work increases

remains constant

may increase of decrease depending on the individual?s preferences.

39 / 50

Who among the following is most benefited from inflation ?

Creditors

Debtors

Government pensioners

Savings Bank Account holders

40 / 50

?Future shock?is____________?

a phrase used by Alvin Toffler to describe the rapidity of change

what the elderly experience in every society when a new generation comes into power

a phrase used to describe an alien culture

the name of a famous movie dealing with a society of the future

41 / 50

The extent to which a change in the exchange rate leads to changes in import and export prices is known as the ?

absorption effect

pass through effect

Marshall Lerner effect

J Curve effect

42 / 50

Comparing a monopoly and competitive firm, the monopolist will ?

produce less at a lower price

produce less at a higher price

produce less at a lower price

produce more at a lower price

43 / 50

Love of money peace and God are American ?

Norms

folkways

values

44 / 50

Potential GDP is the level of aggregate output ?

that can be produced at a zero-unemployment rate

that can be sustained in the long run, if the inflation rate is zero

that can be sustained in the long run without inflation

that can be produced if structural unemployment is zero

45 / 50

A tax on petrol is likely to ?

generate a deadweight loss that is unaffected by the time period over which it is measured

cause a greater deadweight loss in the short run when compared to the long run.

cause a greater deadweight loss in the long run when compared to the short run

None of these answers

46 / 50

In the Px = export price index, Pm = import price index, Qx = export quantity index,and Qm = import quantity index. Developing countries tend to maintain that their commodity term of trade have declined over the long run suggesting that _________ has declined?

(Px/Pm)Qx

(Pm/Px)Qm

Px/Pm

Pm/Px

47 / 50

The natural rate of output is the amount of real GDP produced ?

When there is no no unemployment

When the economy is at the natural rate of unemployment

When the economy is at the natural rate of investment

When the economy is at the natural rate of aggregate demand

48 / 50

Anger is_______________?

subject to manipulation

a definite sharply defined emotion

all of the above

an innate human response to deprivation and frustration

49 / 50

In the short run the level of floating exchange rates is determined mainly by ?

interest rates

speculation

competitiveness

trade

50 / 50

During the 1980s and 1990s the economic policies of China, supported by Deng Xiaoping have led directly to______________??

the success of the commune system

an expansion of China?s colonial empire

an increase in trade with the West

a return to a strict command economy

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