Economics Quiz 27

1 / 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

an equality of trade position

a belief system

2 / 50

The economic participant who decides how to use the factors of production and for what purpose in called a________________?

firm

product

household

market

3 / 50

If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the marginal propensity to consume is what ?

0.8

800

810

0.81

4 / 50

A graph showing all the combinations of capital and labor that can used to produce a given amount of output is ?

a production functions

an isoquant.

an isocost line

an indifference curves.

5 / 50

An increase in the price of beef providers information which ?

tells consumers to buy more beef.

provides no information because prices in a market system are managed by planning boards.

tells producers to produce more beef.

tells consumers to buy less pork

6 / 50

Total land area of Khyber Pakhtunkhwa comprises of 10.2 mha (25.20 million acres), out of which nearly ________ are cultivated?

10% or 1.93 mha

29% or 5.93 mha

35% or 7.93 mha

20% or 3.93 mha

7 / 50

History is often NOT considered a social science because_______________?

historians do not use computers

its primary concern is to record events of the past

it is not based on evidence

it does not study people

8 / 50

If a firm has some degree of market power, then output price ?

is guaranteed to be above a firm?s average cost.

is determined by the actions of other firms in the industry

no longer influences the amount demand of the firm?s product

becomes a decision variable for the firm

9 / 50

Macroeconomics is the study of ?

individual building blocks in the economy

the economy as a whole

the relationship between different sectors on the economy

household purchase decisions

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 exchange

Currency value

11 / 50

For perfect competition to work there must be ?

free entry and exit

all of the above

many buyers and sellers

a standard product

12 / 50

Conflicts between different levels of the same channel of distribution are referred to as ?

horizontal conflicts

vertical conflicts

layer-based conflicts

parallel conflicts

13 / 50

The merging of majority and minority groups as happened in Brazil is called_______________?

amalgamation

accommodation

acculturation

segregation

14 / 50

Menu costs in relation to inflation refers to ?

Costs of money increasing its value

Costs of altering price lists

Costs of finding better rates of return

Costs of revaluing the currency

15 / 50

Which of the following best describes the rate of growth in productivity in the United states over the last fifty years ?

Productivity growth has been steady over the last 50 years

Productivity has been growing more slowly every decade since world War II

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

16 / 50

Which of the following country did not experience large capital flights from 1976 to 1984 ?

Argentina

Mexico

Venezuela

Canada

17 / 50

The Choice between high markups and high volume is part of which of the following retailer marketing decisions ?

Pricing decisions

Target market decisions

Promotion decisions

Produced assortment and services decisions

18 / 50

According to the differential association theory deviant acts are_________________?

considered normal by some antisocial individuals

learned through interaction with others

caused by abnormal chromosomes

the result of social deprivation

19 / 50

The demand for which of the following is likely to be the most price inelastic ?

transportation

airline tickets

taxi rides

bus tickets

20 / 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

21 / 50

Refer to Exhibit 4. If a tax is placed on the product in this market consumer surplus is the area ?

A + B + E

A + B +C + D

22 / 50

Which of the following is an agricultural produce of Taiwan ?

Coffee

Rice

Maize

None of the above

23 / 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 ?

bound by soft budget

target variables

achieved only through socialism

recurrent expenditures

24 / 50

One of the perceived advantages of suburban living is_______________________?

larger variety of cultural resources

older more gracious housing

greater safety from crime

concentration of apartments

25 / 50

Which statistical factor is used to convert current currency purchasing power into inflation adjusted purchasing power ?

Inflator

Deflector

Deflation

Purchasing power parity

26 / 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 ?

aggregate supply will increase will increase aggregate output will increase and the price level will increase

aggregate supply will increase will increase aggregate output will increase and the price level will decrease

aggregate supply will increase will increase aggregate demand will decrease and the price level will decrease

both aggregate supply and demand will increase will increase and the price level will increase

27 / 50

If the marginal revenue is Positive ?

Selling another unit will increase costs

Selling another unit will increase total revenue

Selling another unit will increase average revenue

Selling another unit will increase profits

28 / 50

Economic profit is equal to total revenue minus ?

implicit costs

marginal costs

explicit costs

variable costs

29 / 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

monopolistically competitive firms produce beyond their efficient scale

excess of the cost of production and this causes a deadweight loss.

Since price is above marginal cost surplus is redistributed from buyers to sellers

30 / 50

A higher GDP per capita may not means that the quality of life has really improved because ?

It does not measure the quality of the items produced

It measures Gross Domestic Product

It is only measured every five years:

It measures wealth not income

31 / 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

A + B + E

32 / 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.

33 / 50

A contraction in supply occurs when ?

The supply curve shifts outwards

The supply curve shifts inwards

Demand shifts outwards

The quantity supplied falls when the price falls

34 / 50

Net taxes are ?

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

Taxes paid by firms and households to the government plus transfer payments made to firm and households

government expenditures minus government revenues

35 / 50

Externalities are a problem only if ?

decision makers do not take them into account

all firms are perfectly competitive

all firms are monopolistic

the externalities are negative

36 / 50

The poorest region of the World is ?

Asia

Latin America

the Middle East

Sub Saharan Africa

37 / 50

In terms of the demand for money the interest rate represents ?

the rate at which current consumption can be exchanged for future consumption

The opportunity cost of holding money

the return on money that is saved for the future

the price of borrowing money

38 / 50

The Bank of England and the Federal Reserve ?

loan money to most of LDC commercial banks

use fiscal policy to influence GDP

are branches of commercial banks

are central banks

39 / 50

If Pakistan?s incomes rise faster than those in most other countries the the exchange value will tend to ?

fluctuate more than it would do otherwise

depreciate

appreciate

not be affected

40 / 50

Durkheim,s approach to religion involved the opposed concepts of_________________?

sacred and profane

natural and supernatural

children of light and children of darkness

good and evil

41 / 50

A perfectly competitive market has ?

at least a few sellers.

only one seller.

firms that set their own prices

many buyers and sellers.

42 / 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

43 / 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 ?

Output falls; prices are unchanged from the initial value

Output rises; prices are unchanged from the initial value

Output and the price level are unchanged from their initial values

Prices fall; output is unchanged from its initial value

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 ?

maximum capital absorption

intermediate technology

factor price distortions

engineering mentality

45 / 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

46 / 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 evidence of discrimination against workers outside the coal mine

coal miners must be more attractive than other workers

we have observed a compensating differential

coal miners must have greater human capital than others

47 / 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 interest rates

decrease the money supply

decrease government spending and increase taxes

Increase government spending and decrease taxes

48 / 50

How are presidential programs funded ?

By foreign nations

By government investments

By withdrawals from the Treasury Department

By Congress

49 / 50

Which of the following iron has got the highest carbon content ?

Mild Steel

Wrought Iron

Cast Iron

Stainless Steel

50 / 50

The marginal rate of tax paid is ?

The total tax paid / total income

Total income / total tax paid

Change in the tax paid / change in income

Change in income / change in tax paid

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