Economics Quiz 4

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

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

2 / 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

administrative

crisis

general

3 / 50

Output fell sharply in the transition economies because ?

there was little corporate control

vital infrastructure was missing

banks were unable to function

All of the above

4 / 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

5 / 50

In a cartel ?

Firms collude

Price wars are common

Firms use price to win market share from competitors

Firms compete against each other

6 / 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

7 / 50

By financial crowding out economist mean ?

government borrowing drives up interest rates

Bank of England controls on commercial bank lending

credit rationing

what the government borrows cannot be used for private investment

8 / 50

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

signaler

agent

screener

principle

9 / 50

Which are Pakistan major seasons for agriculture crop ?

Kharif & Barani

barani & rabi

Kharif , Rabi

Kharif & rabi

10 / 50

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

kit-Kat chocolate snacks and Twix chocolate snacks

right shoes and left shoes

coke and Pepsi

petrol from BP and petrol from shell

11 / 50

The Phillips curve indicates that there is a ?

negative relationship between the inflation rate and the unemployment rate

negative relationship between the inflation rate and labor demand

positive relationship between labor supply and the inflation rate

positive relationship between the inflation rate and the employment the

12 / 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 in the portfolio from 1 to 10

Increasing the number of shares from 10 to 20

13 / 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

increasing in the demand for imports and an increasing 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

14 / 50

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

unchanged

rapid since the beginning of history

slow because people are creatures of habit

slow until the Industrial Revolution then rapid

15 / 50

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

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

Boys are sent to schools far more often than girls

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

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 due to a large number of parties affected by the externality

costs incurred due to lawyers? fees

costs incurred to enforce the agreement

costs incurred to reduce the pollution

17 / 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 micro-chip revolution

The call for more socially responsible marketing

Rapid globalization

The changing world economy

18 / 50

A profit maximizing firm is perfect competition produces where ?

Marginal revenue equals average cost

Total revenue is maximized

Marginal revenue equals zero

Marginal revenue equals marginal cost

19 / 50

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

Value added

Value addition

Tax on stage

Excise

20 / 50

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

Coffee

Millets

Cotton

Barley

21 / 50

The Generalized System of Preferences (GSP) program allows ?

developing country export to advanced countries to receive preferential tariff treatment

developing country imports from 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

22 / 50

The value of the marginal product of labor is ?

the price of the output times the marginal product of labor

the price of the output times wage of labor

the wage of labor times the quantity of labor

none of these answers

23 / 50

Enacting legislation__________________?

involves negotiation and compromise

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

24 / 50

An increase in price all other things unchanged leads to ?

A shift in supply inwards

A contraction of supply

An extension of supply

A shift in supply outwards

25 / 50

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

$975

$1,095

$945

$905

26 / 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 ?

490 units

500 units

550 units

450 units

27 / 50

The refinancing rate is ?

The interest rate the European Central Bank pays on reserves

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

The interest rates the public pays when borrowing from banks

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

28 / 50

The favorable evaluation of presidents is based on______________?

the caretaker role

the teflon principle

dynamic political leadership

strict adherence to the written Constitution

29 / 50

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

economy-of-scale effect

trade diversion effect

decrease customs costs

increased monopoly power of firms

30 / 50

Multinational corporations face problems since they ?

can only invest overseas but not at home

can only invest at home but not overseas

cannot benefit from the advantage of comparative advantage

may raise political problems in countries where their subsidiaries operate

31 / 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

32 / 50

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

GDP

GNP

budget

export earnings

33 / 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 payments

current account

balance of trade

34 / 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

Any of the above

relatively greater than

the same as

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 ?

weaken the power of trade unions

reduce poverty

help small businesses

reduce unemployment

36 / 50

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

Sureties

Bond

Certificates

Security bonds

37 / 50

What is Debt Service ?

repayments of external debt

Both of them

Interest payments on external debts

none of these

38 / 50

In economic terms incomes are distributed according to________________?

a person?s marginal productivity

which skills one has

innate talent

whom one knows

39 / 50

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

principalities

territories

nation-sates or national states

dominions

40 / 50

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

we must cut back on the consumption of other goods.

everyone has as much as they would like

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.

41 / 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

Free adjustment

Comparative adjustment

Cost of living adjustment

42 / 50

Modern societies are grappling with the notion of_________________?

lowering the age at marriage

none of the above

eliminating marriage altogether

allowing same-sex couples to marry

43 / 50

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

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

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 shifts the supply of loanable funds to the left

44 / 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

45 / 50

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

Fiscal period

Calendar year

Fiscal year (FY)

Year unit

46 / 50

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

Business Crop

Cash crop

Earning Crop

Money Crop

47 / 50

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

Equal to 0

Less than 1

Greater than 1

Equal to 1

48 / 50

The first European people to form a nation were is________________?

Scots

Picts

Slavs

English

49 / 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

50 / 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

Open Market operations

Financial regulation

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