Economics Quiz 4

1 / 50

Enacting legislation__________________?

involves negotiation and compromise

is a slow and painful process

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

all of the above

2 / 50

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

dominions

principalities

territories

nation-sates or national states

3 / 50

In a cartel ?

Firms use price to win market share from competitors

Firms compete against each other

Firms collude

Price wars are common

4 / 50

The refinancing rate is ?

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

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

The interest rate the European Central Bank pays on reserves

The interest rates the public pays when borrowing from banks

5 / 50

The first European people to form a nation were is________________?

English

Scots

Picts

Slavs

6 / 50

Gross National Product equals ?

Net National Product plus net property income from abroad

Net National Product adjusted for inflation

Gross Domestic Product plus net property income from abroad

Gross Domestic Product adjusted for inflation

7 / 50

By financial crowding out economist mean ?

what the government borrows cannot be used for private investment

government borrowing drives up interest rates

Bank of England controls on commercial bank lending

credit rationing

8 / 50

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

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

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

9 / 50

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

decrease customs costs

economy-of-scale effect

increased monopoly power of firms

trade diversion effect

10 / 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 ?

the same as

relatively less than

relatively greater than

Any of the above

11 / 50

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

291 per sq. Km

270 per sq. Km

235 per sq. Km

196 per sq. Km

12 / 50

As the required reserve ratio is decreased the money multiplier ?

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

increase

could either increase or decrease

decrease

13 / 50

The Generalized System of Preferences (GSP) program allows ?

any developing country to ignore the most-favored nation clause

any advanced country to ignore the most favored-nation clause

developing country export to advanced countries to receive preferential tariff treatment

developing country imports from advanced countries to receive preferential tariff treatment

14 / 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______________?

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

None of the statements above is correct

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

15 / 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 ?

administrative

threatening

crisis

general

16 / 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 to enforce the agreement

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

costs incurred due to lawyers? fees

costs incurred to reduce the pollution

17 / 50

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

Increasing the number of shares from 20 to 30

All of these answers provide the same amount of risk reduction

Increasing the number of shares from 10 to 20

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

18 / 50

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

Value added

Excise

Tax on stage

Value addition

19 / 50

A positive externality generates ?

none of these answers

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

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

20 / 50

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

Barley

Coffee

Cotton

Millets

21 / 50

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

balance of payments

balance of trade

capital account

current account

22 / 50

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

buyers receive no benefit from another unit of medical care.

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

everyone has as much as they would like

we must cut back on the consumption of other goods.

23 / 50

The favorable evaluation of presidents is based on______________?

strict adherence to the written Constitution

dynamic political leadership

the caretaker role

the teflon principle

24 / 50

Group marriage ________________?

has been a consistent feature in Western societies

has never been consistently or extensively practiced

is practiced among Australian aborigines

is widespread in several societies

25 / 50

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

petrol from BP and petrol from shell

kit-Kat chocolate snacks and Twix chocolate snacks

coke and Pepsi

right shoes and left shoes

26 / 50

In economic terms incomes are distributed according to________________?

a person?s marginal productivity

which skills one has

whom one knows

innate talent

27 / 50

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

Calendar year

Year unit

Fiscal year (FY)

Fiscal period

28 / 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

450 units

500 units

490 units

29 / 50

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

Cost effective adjustment

Cost of living adjustment

Comparative adjustment

Free adjustment

30 / 50

Output fell sharply in the transition economies because ?

vital infrastructure was missing

there was little corporate control

All of the above

banks were unable to function

31 / 50

Which are Pakistan major seasons for agriculture crop ?

barani & rabi

Kharif & Barani

Kharif & rabi

Kharif , Rabi

32 / 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

33 / 50

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

financial intermediation

Open Market operations

lender of less resort

Financial regulation

34 / 50

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

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

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

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

Boys are sent to schools far more often than girls

35 / 50

An increase in price all other things unchanged leads to ?

A contraction of supply

A shift in supply outwards

An extension of supply

A shift in supply inwards

36 / 50

A profit maximizing firm is perfect competition produces where ?

Marginal revenue equals marginal cost

Total revenue is maximized

Marginal revenue equals zero

Marginal revenue equals average cost

37 / 50

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

$945

$1,095

$975

$905

38 / 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 an increase in the demand for foreign currency

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

39 / 50

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

Business Crop

Money Crop

Cash crop

Earning Crop

40 / 50

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

Greater than 1

Less than 1

Equal to 0

Equal to 1

41 / 50

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

screener

principle

agent

signaler

42 / 50

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

Security bonds

Certificates

Sureties

Bond

43 / 50

What is Debt Service ?

Interest payments on external debts

none of these

repayments of external debt

Both of them

44 / 50

Multinational corporations face problems since they ?

cannot benefit from the advantage of comparative advantage

can only invest at home but not overseas

can only invest overseas but not at home

may raise political problems in countries where their subsidiaries operate

45 / 50

The Phillips curve indicates that there is a ?

positive relationship between the inflation rate and the employment the

negative relationship between the inflation rate and labor demand

negative relationship between the inflation rate and the unemployment rate

positive relationship between labor supply and the inflation rate

46 / 50

The value of the marginal product of labor is ?

the wage of labor times the quantity of labor

none of these answers

the price of the output times wage of labor

the price of the output times the marginal product of labor

47 / 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 ?

Rapid globalization

The call for more socially responsible marketing

The changing world economy

The micro-chip revolution

48 / 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

help small businesses

reduce unemployment

weaken the power of trade unions

49 / 50

Modern societies are grappling with the notion of_________________?

lowering the age at marriage

allowing same-sex couples to marry

eliminating marriage altogether

none of the above

50 / 50

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

budget

GNP

GDP

export earnings

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