0% 0 Economics Quiz 27 1 / 50 According to Supply-side economists. if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ? both aggregate supply and demand will increase will increase and the price level will increase aggregate supply will increase will increase aggregate demand will decrease and the price level will decrease aggregate supply will increase will increase aggregate output will increase and the price level will decrease aggregate supply will increase will increase aggregate output will increase and the price level will increase 2 / 50 The demand for which of the following is likely to be the most price inelastic ? taxi rides bus tickets airline tickets transportation 3 / 50 A graph showing all the combinations of capital and labor that can used to produce a given amount of output is ? an isoquant. an isocost line a production functions an indifference curves. 4 / 50 If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the marginal propensity to consume is what ? 800 810 0.81 0.8 5 / 50 Menu costs in relation to inflation refers to ? Costs of altering price lists Costs of money increasing its value Costs of finding better rates of return Costs of revaluing the currency 6 / 50 A contraction in supply occurs when ? The supply curve shifts inwards Demand shifts outwards The quantity supplied falls when the price falls The supply curve shifts outwards 7 / 50 If the marginal revenue is Positive ? Selling another unit will increase costs Selling another unit will increase average revenue Selling another unit will increase total revenue Selling another unit will increase profits 8 / 50 Refer to Exhibit 4. If a tax is placed on the product in this market consumer surplus is the area ? A A + B + E D A + B +C + D 9 / 50 The marginal rate of tax paid is ? Change in income / change in tax paid Change in the tax paid / change in income The total tax paid / total income Total income / total tax paid 10 / 50 There is method by which one currency is bought, sold or valued in terms of other currencies, gold or accounting units such as the Special Drawing Right of IMF. What is it called ? Exchange rate Currency value Currency value Currency exchange 11 / 50 Which of the following is an agricultural produce of Taiwan ? Rice Coffee None of the above Maize 12 / 50 One source of inefficiency in monopolistic competition is that since price is above marginal cost, some units are not produced that buyers value in ? monopolistically competitive firms earn economic profits in the long run Since price is above marginal cost surplus is redistributed from buyers to sellers excess of the cost of production and this causes a deadweight loss. monopolistically competitive firms produce beyond their efficient scale 13 / 50 The economic participant who decides how to use the factors of production and for what purpose in called a________________? firm product household market 14 / 50 The merging of majority and minority groups as happened in Brazil is called_______________? accommodation segregation acculturation amalgamation 15 / 50 A higher GDP per capita may not means that the quality of life has really improved because ? It measures Gross Domestic Product It measures wealth not income It does not measure the quality of the items produced It is only measured every five years: 16 / 50 If a person who works in coal mine gets paid more than a person with a similar background and skills who works in a safer job, then ? we have observed a compensating differential we have evidence of discrimination against workers outside the coal mine coal miners must be more attractive than other workers coal miners must have greater human capital than others 17 / 50 Macroeconomics is the study of ? the relationship between different sectors on the economy individual building blocks in the economy the economy as a whole household purchase decisions 18 / 50 Externalities are a problem only if ? all firms are perfectly competitive the externalities are negative decision makers do not take them into account all firms are monopolistic 19 / 50 The Choice between high markups and high volume is part of which of the following retailer marketing decisions ? Produced assortment and services decisions Pricing decisions Target market decisions Promotion decisions 20 / 50 Suppose the economy is initially in long run equilibrium Then suppose there is a drought that destroys much of the wheat crop if policymakers allow the economy to adjust to long-run equilibrium on its own, according to the model to aggregate demand and aggregate supply what happens to prices and output in the long run ? Prices fall; output is unchanged from its initial value Output and the price level are unchanged from their initial values Output rises; prices are unchanged from the initial value Output falls; prices are unchanged from the initial value 21 / 50 An increase in investment is most likely to be caused by ? A decrease in the marginal propensity to consume Lower national income An increase in withdrawals Lower interest rates 22 / 50 If a firm has some degree of market power, then output price ? is guaranteed to be above a firm?s average cost. becomes a decision variable for the firm is determined by the actions of other firms in the industry no longer influences the amount demand of the firm?s product 23 / 50 According to the differential association theory deviant acts are_________________? caused by abnormal chromosomes considered normal by some antisocial individuals the result of social deprivation learned through interaction with others 24 / 50 For perfect competition to work there must be ? all of the above a standard product many buyers and sellers free entry and exit 25 / 50 To maintain its economic position, Japan has often limited the number of cars or the quantity of farm products that the United States can sell in Japan Japan has imposed these limits to develop ? a more open market a favorable balance of trade a belief system an equality of trade position 26 / 50 Which of the following country did not experience large capital flights from 1976 to 1984 ? Argentina Venezuela Canada Mexico 27 / 50 Which of the following best describes the rate of growth in productivity in the United states over the last fifty years ? Productivity has been growing more slowly every decade since world War II Productivity growth has been steady over the last 50 years Productivity grew quickly in the 1950s and 1960s more slowly from the early 1970s through 1995 and then quickly again Productivity grew slowly from the 1950s through the 1970s and then began to accelerate probably due to advances in computer technology 28 / 50 Refer to Exhibit 4. If a tax is placed on the product in this market, producer surplus is the area? A + B + C + D D A A + B + E 29 / 50 How are presidential programs funded ? By Congress By withdrawals from the Treasury Department By foreign nations By government investments 30 / 50 History is often NOT considered a social science because_______________? it does not study people its primary concern is to record events of the past historians do not use computers it is not based on evidence 31 / 50 Net taxes are ? government expenditures minus government revenues Taxes paid by firms and households to the government plus transfer payments made to firm and households Taxes paid firms and households to the government minus the transfer payments made to firms and household taxes paid by firms and households to the government minus the cost of collecting the taxes 32 / 50 If Pakistan?s incomes rise faster than those in most other countries the the exchange value will tend to ? appreciate not be affected depreciate fluctuate more than it would do otherwise 33 / 50 In terms of the demand for money the interest rate represents ? The opportunity cost of holding money the rate at which current consumption can be exchanged for future consumption the return on money that is saved for the future the price of borrowing money 34 / 50 Total land area of Khyber Pakhtunkhwa comprises of 10.2 mha (25.20 million acres), out of which nearly ________ are cultivated? 29% or 5.93 mha 10% or 1.93 mha 35% or 7.93 mha 20% or 3.93 mha 35 / 50 Economic profit is equal to total revenue minus ? marginal costs variable costs explicit costs implicit costs 36 / 50 The Bank of England and the Federal Reserve ? are branches of commercial banks loan money to most of LDC commercial banks use fiscal policy to influence GDP are central banks 37 / 50 One of the perceived advantages of suburban living is_______________________? larger variety of cultural resources concentration of apartments greater safety from crime older more gracious housing 38 / 50 Conflicts between different levels of the same channel of distribution are referred to as ? parallel conflicts horizontal conflicts layer-based conflicts vertical conflicts 39 / 50 Which of the following iron has got the highest carbon content ? Wrought Iron Stainless Steel Mild Steel Cast Iron 40 / 50 Suppose a wave of investor and consumer pessimism in the USA causes a reduction in spending If the US federal Reserve (Which has a broader remit than the Bank of England Which is charged only with controlling inflation) chooses to engage in activist stabilization policy it should ? decrease government spending and increase taxes decrease interest rates decrease the money supply Increase government spending and decrease taxes 41 / 50 Which statistical factor is used to convert current currency purchasing power into inflation adjusted purchasing power ? Purchasing power parity Deflector Inflator Deflation 42 / 50 Durkheim,s approach to religion involved the opposed concepts of_________________? sacred and profane good and evil children of light and children of darkness natural and supernatural 43 / 50 The social sciences have no laws because ? social science research techniques are flawed the various disciplines squabble among themselves social scientists are a lawless group none of the above 44 / 50 James Pickett J.Forsyth, and N. S McBain on the basis of field research in Africa, concluded that business people often want to use the most advanced design without knowing that it may not be the most profitable. They attribute this attitude to ? engineering mentality maximum capital absorption intermediate technology factor price distortions 45 / 50 A perfectly competitive market has ? only one seller. firms that set their own prices at least a few sellers. many buyers and sellers. 46 / 50 An increase in the price of beef providers information which ? provides no information because prices in a market system are managed by planning boards. tells producers to produce more beef. tells consumers to buy more beef. tells consumers to buy less pork 47 / 50 The poorest region of the World is ? Asia the Middle East Latin America Sub Saharan Africa 48 / 50 Aggregate demand in an economy trading internationally with a government sector can be written as ? AD = C + I + G AD = C + I + G + X + Z AD = C + I AD = C + I + G + X ? Z 49 / 50 The poverty trap refers to ? a situation in which those receiving state benefits may be almost no better off if they choose to work more to earn more because doing so will reduce the amount of benefit income to which they are entitled and increase the amount to tax a situation in which those receiving state benefits may be almost no better off if they choose to work more to earn more income for themselves and their families because doing so will mean they have to pay back the benefits they have previously received a situation in which those receiving state benefits are discriminated against by employers and so find it more difficult to find jobs. a situation in which workers are unable to find jobs. 50 / 50 Annual GNP growth of 6% poverty reduced by 1% point of the population Balance of payments deficit not in excess of $200 million For a planner, the above are ? achieved only through socialism recurrent expenditures bound by soft budget target variables Provide Your Information Your score is The average score is 0% LinkedIn Facebook Twitter 0% Restart quiz Send feedback Share on facebook Facebook Share on twitter Twitter Share on whatsapp WhatsApp PrevEconomics Quiz 26 Economics Quiz 28Next
