Economics Quiz 4

1 / 50

The refinancing rate is ?

The interest rates the European Central Bank charges on loans to banks

The interest rates the public pays when borrowing from banks

The interest rate at Which commercial banks lend to and borrow from each other

The interest rate the European Central Bank pays on reserves

2 / 50

If price consumption curve will be horizontal on x-axes then elasticity of demand will be:___________?

Less than 1

Equal to 1

Equal to 0

Greater than 1

3 / 50

In the year 2010-11 what was per capita income ?

$905

$945

$1,095

$975

4 / 50

Medical care clearly enhance people?s lives. Therefore, we should consume medical care until ?

everyone has as much as they would like

we must cut back on the consumption of other goods.

the benefit buyers place on medical care is equal to the cost of producing it

buyers receive no benefit from another unit of medical care.

5 / 50

The record of a country?s transactions in goods, services and assets with the rest of the world is its ?

capital account

balance of trade

current account

balance of payments

6 / 50

An increase in price all other things unchanged leads to ?

A contraction of supply

A shift in supply inwards

An extension of supply

A shift in supply outwards

7 / 50

Suppose that the supply curve of tin is highly inelastic. If the demand curve of tin decrease and increase cyclically along the supply curve of tin, then in this market the size of the quantity fluctuation will bathe size of the price fluctuations ?

Any of the above

relatively less than

the same as

relatively greater than

8 / 50

An adjustment is made in wages that corresponds with the change in the cost of living. What this adjustment is called ?

Free adjustment

Comparative adjustment

Cost effective adjustment

Cost of living adjustment

9 / 50

Gross National Product equals ?

Net National Product adjusted for inflation

Gross Domestic Product plus net property income from abroad

Gross Domestic Product adjusted for inflation

Net National Product plus net property income from abroad

10 / 50

By financial crowding out economist mean ?

government borrowing drives up interest rates

credit rationing

Bank of England controls on commercial bank lending

what the government borrows cannot be used for private investment

11 / 50

The favorable evaluation of presidents is based on______________?

the teflon principle

the caretaker role

dynamic political leadership

strict adherence to the written Constitution

12 / 50

Given a system of floating exchange rates rising income in the United States would trigger a (an) ?

decrease in the demand for imports and a decrease in the demand for foreign currency

increase in the demand for imports and decrease in the demand for foreign currency

increasing in the demand for imports and an increasing in the demand for foreign currency

decrease in the demand for imports and an increase in the demand for foreign currency

13 / 50

What is called the crop which is grown for sale rather than the farmer?s own use ?

Money Crop

Cash crop

Business Crop

Earning Crop

14 / 50

An organization plans the use of its fund during a 12-month period. What is this period called ?

Year unit

Calendar year

Fiscal period

Fiscal year (FY)

15 / 50

In a cartel ?

Firms collude

Price wars are common

Firms compete against each other

Firms use price to win market share from competitors

16 / 50

In economic terms incomes are distributed according to________________?

a person?s marginal productivity

which skills one has

innate talent

whom one knows

17 / 50

Enacting legislation__________________?

sometimes pits the executive branch against the interests of the members of states and districts

all of the above

is a slow and painful process

involves negotiation and compromise

18 / 50

The Generalized System of Preferences (GSP) program allows ?

developing country export to advanced countries to receive preferential tariff treatment

any advanced country to ignore the most favored-nation clause

any developing country to ignore the most-favored nation clause

developing country imports from advanced countries to receive preferential tariff treatment

19 / 50

Which of the following is Not True about education in LDCs ?

Boys are sent to schools far more often than girls

The expansion of primary education redistributes benefits from the rich to the poor

Economists unanimously agree that LDCs should put greater priority on primary education

Public expenditure per student for higher education is about ten times as high as for primary education

20 / 50

Since state and nation are not the same thing the preferred term for individual political entities is_______________?

principalities

dominions

territories

nation-sates or national states

21 / 50

Estimated value that is added to a product or material to each stage, of its manufacture or distribution, is known as ?

Tax on stage

Value addition

Value added

Excise

22 / 50

The first European people to form a nation were is________________?

Scots

Slavs

English

Picts

23 / 50

A profit maximizing firm is perfect competition produces where ?

Marginal revenue equals average cost

Marginal revenue equals marginal cost

Total revenue is maximized

Marginal revenue equals zero

24 / 50

The Phillips curve indicates that there is a ?

negative relationship between the inflation rate and the unemployment rate

positive relationship between labor supply and the inflation rate

positive relationship between the inflation rate and the employment the

negative relationship between the inflation rate and labor demand

25 / 50

New classical economists advocate reducing welfare payments to people who are unemployed or single parents. The economic reasoning uses was that this would ?

reduce poverty

reduce unemployment

help small businesses

weaken the power of trade unions

26 / 50

A change in the relative prices of which of the following pair of goods would likely cause the smallest substitution effect ?

right shoes and left shoes

coke and Pepsi

kit-Kat chocolate snacks and Twix chocolate snacks

petrol from BP and petrol from shell

27 / 50

When President Kennedy told the Soviet leader to withdraw Russian missiles in Cuba it was an illustration of one of the following types of foreign policy ?

crisis

administrative

threatening

general

28 / 50

The density of population in K.P.K is ?

196 per sq. Km

270 per sq. Km

291 per sq. Km

235 per sq. Km

29 / 50

A positive externality generates ?

a social cost curve that is above the supply curve (private cost curve) for a good

a social value curve that is below the demand curve (private value curve) for a good

a social value curve that is above the demand curve (private value curve) for good

none of these answers

30 / 50

The value of the marginal product of labor is ?

none of these answers

the price of the output times the marginal product of labor

the wage of labor times the quantity of labor

the price of the output times wage of labor

31 / 50

For which agricultural produce Sudan is famous and which comes under Tropical Grassland Region ?

Cotton

Millets

Coffee

Barley

32 / 50

Governments and corporations sell interest bearing certificates to raise money for expansion or trade. What is called these certificates ?

Certificates

Sureties

Bond

Security bonds

33 / 50

A positive, dynamic effect of economic integration is illustrated by ?

economy-of-scale effect

decrease customs costs

increased monopoly power of firms

trade diversion effect

34 / 50

The rate of change for most of human history has been________________?

slow until the Industrial Revolution then rapid

unchanged

rapid since the beginning of history

slow because people are creatures of habit

35 / 50

Which of the following statements regarding the loanable funds market is not true ?

A decrease in a country?s net capital outflow shifts the demand for loanable funds to the left

An increase in a country?s net capital outflow raises its real interest rate

An increase in domestic investment shifts the demand for loanable funds to the right

An increase in a country?s net capital outflow shifts the supply of loanable funds to the left

36 / 50

Which are Pakistan major seasons for agriculture crop ?

barani & rabi

Kharif & Barani

Kharif & rabi

Kharif , Rabi

37 / 50

Group marriage ________________?

is widespread in several societies

is practiced among Australian aborigines

has never been consistently or extensively practiced

has been a consistent feature in Western societies

38 / 50

Multinational corporations face problems since they ?

can only invest at home but not overseas

can only invest overseas but not at home

cannot benefit from the advantage of comparative advantage

may raise political problems in countries where their subsidiaries operate

39 / 50

Price increases from 10 to 12 pence and the price elasticity of demand is -0.5 The quantity demanded was 500 units. What will it be now ?

550 units

490 units

500 units

450 units

40 / 50

What is Debt Service ?

repayments of external debt

none of these

Both of them

Interest payments on external debts

41 / 50

Which of the following is not considered a transaction cost incurred by parties in the process of contracting to eliminate a pollution externality ?

costs incurred due to lawyers? fees

costs incurred to reduce the pollution

costs incurred due to a large number of parties affected by the externality

costs incurred to enforce the agreement

42 / 50

Output fell sharply in the transition economies because ?

banks were unable to function

All of the above

vital infrastructure was missing

there was little corporate control

43 / 50

Fundamentalists want the IMF to lend to crisis-stricken countries on condition that they undertake fundamental structural reforms in banking Joseph Stiglitz however thinks it is______________?

unrealistic for IMF to intervene in the financial markets of poor countries during the crisis

impractical for the IMF to loan short term as reforms can only be effective in the middle to long run

None of the statements above is correct

crucial that the IMF intervene in the reform of fiscal policy of the country and not the monetary policy

44 / 50

Livestock sector accounts for nearly 36 percent of agriculture value added and about 9.0 percent of the ?

GNP

export earnings

budget

GDP

45 / 50

As the required reserve ratio is decreased the money multiplier ?

increase

decrease

could either increase or decrease

remain the same, as long as bank hold no excess reserves

46 / 50

The shrinking or distances due to technological advances such as computer and fax connections by telephone are one characteristic of what new challenge to marketing ?

The call for more socially responsible marketing

Rapid globalization

The micro-chip revolution

The changing world economy

47 / 50

Which of the following reduces risk in a portfolio the greatest ?

Increasing the number of shares from 20 to 30

Increasing the number of shares from 10 to 20

Increasing the number of shares in the portfolio from 1 to 10

All of these answers provide the same amount of risk reduction

48 / 50

If the central bank buys financial securities in the open market to increase the monetary base, this is and example of ?

Open Market operations

lender of less resort

financial intermediation

Financial regulation

49 / 50

Modern societies are grappling with the notion of_________________?

none of the above

allowing same-sex couples to marry

eliminating marriage altogether

lowering the age at marriage

50 / 50

Markus is a travelling salesman for an apparel company. In this employment relationship, Markus is the ?

principle

signaler

agent

screener

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