Economics Quiz 23

1 / 50

The behavior of an individual firm is part of_______________?

macroeconomics

institutional economics

2 / 50

It is difficult to determine if the velocity of money is constant over time because ?

there has been very little fluctuation in the money supply over time.

whether velocity is constant or not may depend on how the money supply is measure.

it is difficult to measure the value of nominal GDP over time

it is difficult to measure the demand for money over time

3 / 50

Less demand in the economy may increase unemployment; this may lead to less spending which may reduce demand further. This is called ?

The upward PPF

The upward accelerator

The downward multiplier

The downward mpc

4 / 50

National Income is essentially composed of ?

Annual Income of the central government

All income of the people on a year

Income derived from taxes by the central government

All wealth of a nation

5 / 50

The total land area of Baluchistan is 34.7 mha (or 85.74 million acres), out of which only ____ are cultivated?

54 % or 11.4 mha

24 % or 5.4 mha

14 % or 3.4 mha

34 % or 7.4 mha

6 / 50

How is termed the legal proceeding in which debtor remains unable to pay his creditors in full ?

Crash

Bankruptcy

Default

Total loss

7 / 50

Demand curves are derived while holding constant ?

incomes, tastes, and the price of other goods.

income and tastes

tastes and the price of other goods

income, tastes, and the price of the good.

8 / 50

Traditionally companies have defined their business in product terms or in technological terms however mission statements should be all of the following EXCEPT ?

motivating

market oriented

based on distinctive competencies

a statement of religion

9 / 50

The response lag of stabilization policy represents ?

the time that it takes for policy makers to recognize the existence of boom of bust

the time that it takes for the economy to adjust to the new conditions after a new policy has been implemented

the time that is necessary to put the desired policy into effect

the time needed for parliament to agree to a tax cut.

10 / 50

Which of the following expenditures to enhance productivity is most likely to emit a positive externality ?

Indus Motors buys a new drill press

OGDC leases a new oil field

Megabank buys a new computer

Naila pays her university tuition fees.

11 / 50

Which of the following is true regarding tradable pollution permits and Pigouvian taxes ?

Pigouvian taxes and tradable pollution permits create an efficient market for pollution.

All of these answers are true

Tradable pollution permits efficiently reduce pollution only if they are initially distributed to the firms that can regulator pollution at the lowest cost.

To set the quantity of pollution with tradable pollution permits, the regulator must know everything about the demand for pollution rights.

12 / 50

Which of the following firms is most likely to spend a large percentage of their revenue on advertising ?

the manufacturer of an undifferentiated consumer commodity

a perfect competitor

The manufacturer of an industrial product

the producer of a highly differentiated consumer product

13 / 50

Which of the following is NOT one of the problems facing most developing nations ?

Food shortages

Labor shortages

Foreign debt

Rapid population growth

14 / 50

Import substitution is an example of ?

the principle of comparative advantage

an inward-looking growth strategy

an outward-looking growth strategy

the principle of absolute advantage

15 / 50

Which is the second largest staple food crop in Pakistan ?

rice

flour

Wheat & flour

Wheat

16 / 50

Galbraith?s idea that firms are controlled by a technostructure supports _________ theories?

Marxist

Williamson?s

classical economic

monetarist

17 / 50

The first airplane was a (n)________________?

diffusion

discovery

invention

miracle

18 / 50

Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. An unexpected monetary contraction will move the economy in the direction of point ?

19 / 50

International difference is opportunity costs lead to countries acquiring ?

trade barriers

Comparative advantage

High exchange rates

trade quotas

20 / 50

What is gross domestic product (GDP) ?

income earned within a country?s boundaries

goods received from the nation?s residents

the number of dollars earned in industry

income earned through foreign exchange

21 / 50

Publics and public opinion________________?

are more frequent in totalitarian societies than in democratic ones

have special meanings in traditional societies where conflicting issues are common

express the values of leaders of society

are more characteristic of complex societies than of simple ones

22 / 50

Descriptive statistics_______________?

permit researchers to generalize from samples

convey information about atypical behavior

convey information about central tendency

allow researchers to test hypotheses

23 / 50

When economists say that people act rationally in their self interest, they mean that individuals _______?

generally disregard the interests of others

are unpredictable

look for and pursue opportunities to increase their utility

are mainly creatures of habit

24 / 50

By ?dependent relations? globalists mean_______________?

industrial nations depend upon raw materials located in no-industrial nations

the legitimacy of nation -states depends upon propaganda and internal surveillance

the effectiveness of the United Nations depends upon a cohesive Security Council

Third-World countries are maintained in a state of dependency by First-and Second- World nations

25 / 50

Evidence suggests that the price elasticity of demand for motoring is ?

Elastic

absolutely inelastic

Unitarily elastic

inelastic

26 / 50

Which of the following countries is known as sugar bowl ?

USA

Cuba

China

Argentina

27 / 50

Nearly _______ of land is cultivated through tube-wells ponds and rain water?

55%

35%

15%

25%

28 / 50

Who is a ?Lame Duck? in a stock market ?

None of the above

A member of the stock exchange who cannot meet his obligations

A old investor

A new investor

29 / 50

Child abuse___________________?

refers to a wide range of maltreatment

has a victimization rate of 12.3 per 1,000 children

only A B and C

includes physical and emotional neglect

30 / 50

Which term is used for an engagement in risky business with the idea of making a large profit in short time ?

Risk covering

Speculation

Idealism

Blind game

31 / 50

Which factor contributes most to the recurring food shortages in Africa ?

extensive river systems

location between two major oceans

Poor distribution of agricultural products

rainforest environment

32 / 50

Policies to reduce unemployment by reducing union power, tax cuts, reductions in unemployment benefit and investment subsidies are examples of ?

Classical policies

Keynesian policies

Supply-side policies

Monetarist Policies

33 / 50

Which of the following is a problem for fiscal policy in a currency union ?

Government of the member countries of the currency union may run large budget deficit and so crowd out private investment

government of the member countries of the currency union may run large budget deficits and so impose costs on other countries by pushing up interest rates on the bonds these countries governments issue

It is difficult to raise enough tax revenue to pay for the operation of the currency union

The central bank controls interest rates on long-term bonds issued by the governments of the member countries of the currency union

34 / 50

A mixed economy ?

Has demand but not supply

Has supply but not demand

Has supply and demand

Has market forces and government intervention

35 / 50

Which of the following is not a barrier to entry in a monopolized market ?

A key resource is owned by a single firm

A single firm is very large

The costs of production make a single producer more efficient than a large number of productions

The government gives a single firm the exclusive right to produce some good

36 / 50

The nuclear family form is also called________________?

consanguine

procreational

conjugal

extended

37 / 50

During the post-world War II era?

NTBs have increased and tariffs have decreased in relative importance

NTBs and tariffs have decreased in relative importance

NTBs have decreased and tariffs have increased in relative importance

Nontariff barriers (NTBs) and tariffs have increased in relative importance

38 / 50

Language____________?

passes on knowledge from generation to generation

reflects changes in society

helps humans to cooperate

all of the above

39 / 50

Which of the following is an example of tragedy of commons ?

smoking in a public place

over fishing

excessive rain

common use of public toilets

40 / 50

The transitional period between the dominance of one party or another is called_______________?

realignment

derailment

alignment

dealignment

41 / 50

I = S + F The equation above states that a country can increase its new capital formation (or investment) through is ?

own domestic savings and by inflows of capital from abroad

savings from abroad and financial outflow

stock market and fiscal policy

savings and financial liberalization

42 / 50

The ?New Class? is characterized as consisting of______________?

apolitical bureaucrats

professionals with skills important in the information society

the working poor

former members of the middle class

43 / 50

Coffee requires hot and moist climate and grows best on slopes which of the following countries is leading in coffee production?

Brazil

Indonesia

None of these

India

44 / 50

In the context of contracts, what refers to secret payments made to ensure that the contract goes to a specific firm ?

kickback

Commission

Graft

Bribe

45 / 50

Cooley?s Lookingglass self refers to______________________?

negative self-image

self-regard based on instinct

a person?s perception as to what others think of him/her

positive self-image

46 / 50

Which economics term describes the takeover of one textile manufactures by another ?

monopoly

Diversification

vertical integration

horizontal integration

47 / 50

If imports licenses are auctioned off to domestic importers in competitive market their scarcity value (revenue effect) accrues to ?

The domestic government

foreign workers

domestic corporations

foreign corporations

48 / 50

The law of demand implies that ?

as prices rise, demand decrease

as prices rise, quantity demanded increases

as prices fall demand increases

as prices fall, quantity demanded increase

49 / 50

Reducing involuntary unemployment ?

Helps the economy move inside the Production Possibility Frontier

Helps the economy move along its Production Possibility Frontier

Helps the economy move on the to Production Possibility Frontier

Helps shift the economy?s Production Possibility Frontier outwards

50 / 50

Political control_____________?

is social control exerted by forces outside the individual

takes the place of moral control in simple societies

is internalized cultural learning

is acquired through socialization

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