Economics Quiz 23

1 / 50

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

are mainly creatures of habit

are unpredictable

look for and pursue opportunities to increase their utility

generally disregard the interests of others

2 / 50

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

OGDC leases a new oil field

Megabank buys a new computer

Naila pays her university tuition fees.

Indus Motors buys a new drill press

3 / 50

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

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

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

it is difficult to measure the demand for money over time

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

4 / 50

Child abuse___________________?

only A B and C

refers to a wide range of maltreatment

includes physical and emotional neglect

has a victimization rate of 12.3 per 1,000 children

5 / 50

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

Bankruptcy

Crash

Default

Total loss

6 / 50

Descriptive statistics_______________?

convey information about atypical behavior

allow researchers to test hypotheses

convey information about central tendency

permit researchers to generalize from samples

7 / 50

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

foreign corporations

foreign workers

The domestic government

domestic corporations

8 / 50

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

a perfect competitor

the producer of a highly differentiated consumer product

the manufacturer of an undifferentiated consumer commodity

The manufacturer of an industrial product

9 / 50

Reducing involuntary unemployment ?

Helps shift the economy?s Production Possibility Frontier outwards

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

10 / 50

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

Indonesia

Brazil

India

None of these

11 / 50

Which is the second largest staple food crop in Pakistan ?

rice

Wheat & flour

flour

Wheat

12 / 50

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

derailment

realignment

dealignment

alignment

13 / 50

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

Foreign debt

Rapid population growth

Labor shortages

Food shortages

14 / 50

National Income is essentially composed of ?

Annual Income of the central government

All wealth of a nation

All income of the people on a year

Income derived from taxes by the central government

15 / 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

16 / 50

The first airplane was a (n)________________?

miracle

invention

diffusion

discovery

17 / 50

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

24 % or 5.4 mha

54 % or 11.4 mha

14 % or 3.4 mha

34 % or 7.4 mha

18 / 50

Import substitution is an example of ?

the principle of comparative advantage

an outward-looking growth strategy

an inward-looking growth strategy

the principle of absolute advantage

19 / 50

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

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

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

20 / 50

A mixed economy ?

Has supply but not demand

Has market forces and government intervention

Has supply and demand

Has demand but not supply

21 / 50

The behavior of an individual firm is part of_______________?

institutional economics

macroeconomics

22 / 50

The ?New Class? is characterized as consisting of______________?

apolitical bureaucrats

the working poor

professionals with skills important in the information society

former members of the middle class

23 / 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

are more characteristic of complex societies than of simple ones

express the values of leaders of society

24 / 50

International difference is opportunity costs lead to countries acquiring ?

Comparative advantage

trade quotas

High exchange rates

trade barriers

25 / 50

What is gross domestic product (GDP) ?

income earned through foreign exchange

income earned within a country?s boundaries

goods received from the nation?s residents

the number of dollars earned in industry

26 / 50

The nuclear family form is also called________________?

consanguine

extended

procreational

conjugal

27 / 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 accelerator

The downward mpc

The upward PPF

The downward multiplier

28 / 50

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

rainforest environment

location between two major oceans

extensive river systems

Poor distribution of agricultural products

29 / 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

30 / 50

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

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

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

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

All of these answers are true

31 / 50

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

A member of the stock exchange who cannot meet his obligations

A old investor

None of the above

A new investor

32 / 50

Which of the following countries is known as sugar bowl ?

Argentina

China

USA

Cuba

33 / 50

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

common use of public toilets

excessive rain

smoking in a public place

over fishing

34 / 50

Cooley?s Lookingglass self refers to______________________?

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

positive self-image

self-regard based on instinct

negative self-image

35 / 50

Demand curves are derived while holding constant ?

incomes, tastes, and the price of other goods.

tastes and the price of other goods

income, tastes, and the price of the good.

income and tastes

36 / 50

The law of demand implies that ?

as prices fall demand increases

as prices rise, quantity demanded increases

as prices fall, quantity demanded increase

as prices rise, demand decrease

37 / 50

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

absolutely inelastic

Unitarily elastic

Elastic

inelastic

38 / 50

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

vertical integration

Diversification

monopoly

horizontal integration

39 / 50

The response lag of stabilization policy represents ?

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

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

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

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

40 / 50

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

Risk covering

Idealism

Speculation

Blind game

41 / 50

Political control_____________?

is internalized cultural learning

is social control exerted by forces outside the individual

takes the place of moral control in simple societies

is acquired through socialization

42 / 50

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

savings from abroad and financial outflow

savings and financial liberalization

stock market and fiscal policy

own domestic savings and by inflows of capital from abroad

43 / 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

44 / 50

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

25%

15%

55%

35%

45 / 50

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

A single firm is very large

A key resource is owned by a single firm

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

46 / 50

Language____________?

all of the above

passes on knowledge from generation to generation

reflects changes in society

helps humans to cooperate

47 / 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 ?

48 / 50

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

Classical policies

Supply-side policies

Keynesian policies

Monetarist Policies

49 / 50

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

Williamson?s

classical economic

monetarist

Marxist

50 / 50

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

based on distinctive competencies

market oriented

a statement of religion

motivating

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