Economics Quiz 4

1 / 50

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

Boys are sent to schools far more often than girls

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

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

2 / 50

Output fell sharply in the transition economies because ?

there was little corporate control

All of the above

banks were unable to function

vital infrastructure was missing

3 / 50

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

235 per sq. Km

196 per sq. Km

291 per sq. Km

270 per sq. Km

4 / 50

The Phillips curve indicates that there is a ?

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 the unemployment rate

negative relationship between the inflation rate and labor demand

5 / 50

The value of the marginal product of labor is ?

the price of the output times wage of labor

none of these answers

the wage of labor times the quantity of labor

the price of the output times the marginal product of labor

6 / 50

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

everyone has as much as they would like

buyers receive no benefit from another unit of medical care.

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

7 / 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 above the demand curve (private value curve) for good

none of these answers

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

8 / 50

Group marriage ________________?

is practiced among Australian aborigines

has been a consistent feature in Western societies

is widespread in several societies

has never been consistently or extensively practiced

9 / 50

An increase in price all other things unchanged leads to ?

A shift in supply outwards

A contraction of supply

An extension of supply

A shift in supply inwards

10 / 50

Which are Pakistan major seasons for agriculture crop ?

Kharif & Barani

Kharif & rabi

barani & rabi

Kharif , Rabi

11 / 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

12 / 50

The first European people to form a nation were is________________?

Slavs

Scots

Picts

English

13 / 50

As the required reserve ratio is decreased the money multiplier ?

decrease

increase

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

could either increase or decrease

14 / 50

A profit maximizing firm is perfect competition produces where ?

Marginal revenue equals average cost

Marginal revenue equals marginal cost

Marginal revenue equals zero

Total revenue is maximized

15 / 50

Enacting legislation__________________?

involves negotiation and compromise

is a slow and painful process

all of the above

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

16 / 50

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

budget

export earnings

GDP

GNP

17 / 50

The refinancing rate is ?

The interest rates the public pays when borrowing from banks

The interest rate the European Central Bank pays on reserves

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

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

18 / 50

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

Coffee

Barley

Cotton

Millets

19 / 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 ?

relatively less than

relatively greater than

Any of the above

the same as

20 / 50

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

slow because people are creatures of habit

rapid since the beginning of history

slow until the Industrial Revolution then rapid

unchanged

21 / 50

What is Debt Service ?

Both of them

repayments of external debt

none of these

Interest payments on external debts

22 / 50

The Generalized System of Preferences (GSP) program allows ?

developing country export to advanced countries to receive preferential tariff treatment

any developing country to ignore the most-favored nation clause

any advanced country to ignore the most favored-nation clause

developing country imports from advanced countries to receive preferential tariff treatment

23 / 50

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

Excise

Tax on stage

Value added

Value addition

24 / 50

In a cartel ?

Firms collude

Price wars are common

Firms use price to win market share from competitors

Firms compete against each other

25 / 50

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

Equal to 0

Less than 1

Equal to 1

Greater than 1

26 / 50

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

Fiscal year (FY)

Calendar year

Fiscal period

Year unit

27 / 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 reduce the pollution

costs incurred due to lawyers? fees

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

costs incurred to enforce the agreement

28 / 50

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

$1,095

$945

$975

$905

29 / 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 ?

threatening

crisis

administrative

general

30 / 50

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

Bond

Security bonds

Certificates

Sureties

31 / 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

32 / 50

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

financial intermediation

lender of less resort

Financial regulation

Open Market operations

33 / 50

Multinational corporations face problems since they ?

can only invest at home but not overseas

cannot benefit from the advantage of comparative advantage

can only invest overseas but not at home

may raise political problems in countries where their subsidiaries operate

34 / 50

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

nation-sates or national states

principalities

territories

dominions

35 / 50

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

help small businesses

reduce unemployment

weaken the power of trade unions

reduce poverty

36 / 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______________?

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

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

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

37 / 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

38 / 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

petrol from BP and petrol from shell

kit-Kat chocolate snacks and Twix chocolate snacks

coke and Pepsi

39 / 50

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

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

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

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

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

40 / 50

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

screener

signaler

agent

principle

41 / 50

The favorable evaluation of presidents is based on______________?

dynamic political leadership

strict adherence to the written Constitution

the teflon principle

the caretaker role

42 / 50

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

balance of payments

capital account

current account

balance of trade

43 / 50

By financial crowding out economist mean ?

government borrowing drives up interest rates

credit rationing

what the government borrows cannot be used for private investment

Bank of England controls on commercial bank lending

44 / 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 changing world economy

The micro-chip revolution

The call for more socially responsible marketing

Rapid globalization

45 / 50

Gross National Product equals ?

Gross Domestic Product plus net property income from abroad

Gross Domestic Product adjusted for inflation

Net National Product adjusted for inflation

Net National Product plus net property income from abroad

46 / 50

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

increased monopoly power of firms

decrease customs costs

trade diversion effect

economy-of-scale effect

47 / 50

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

Business Crop

Cash crop

Money Crop

Earning Crop

48 / 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

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

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

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

49 / 50

In economic terms incomes are distributed according to________________?

a person?s marginal productivity

whom one knows

innate talent

which skills one has

50 / 50

Modern societies are grappling with the notion of_________________?

none of the above

eliminating marriage altogether

allowing same-sex couples to marry

lowering the age at marriage

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