0% 0 Economics Quiz 4 1 / 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 due to a large number of parties affected by the externality costs incurred to enforce the agreement costs incurred to reduce the pollution 2 / 50 As the required reserve ratio is decreased the money multiplier ? could either increase or decrease remain the same, as long as bank hold no excess reserves decrease increase 3 / 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 4 / 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 ? 450 units 490 units 500 units 550 units 5 / 50 An organization plans the use of its fund during a 12-month period. What is this period called ? Year unit Fiscal period Calendar year Fiscal year (FY) 6 / 50 Which of the following statements regarding the loanable funds market is not true ? 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 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 7 / 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 8 / 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 greater than Any of the above relatively less than the same as 9 / 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 10 / 50 Enacting legislation__________________? all of the above sometimes pits the executive branch against the interests of the members of states and districts involves negotiation and compromise is a slow and painful process 11 / 50 A positive, dynamic effect of economic integration is illustrated by ? decrease customs costs trade diversion effect economy-of-scale effect increased monopoly power of firms 12 / 50 In the year 2010-11 what was per capita income ? $905 $945 $975 $1,095 13 / 50 The Generalized System of Preferences (GSP) program allows ? any developing country to ignore the most-favored nation clause developing country export to advanced countries to receive preferential tariff treatment any advanced country to ignore the most favored-nation clause developing country imports from advanced countries to receive preferential tariff treatment 14 / 50 Governments and corporations sell interest bearing certificates to raise money for expansion or trade. What is called these certificates ? Security bonds Bond Sureties Certificates 15 / 50 Medical care clearly enhance people?s lives. Therefore, we should consume medical care until ? the benefit buyers place on medical care is equal to the cost of producing it we must cut back on the consumption of other goods. everyone has as much as they would like buyers receive no benefit from another unit of medical care. 16 / 50 The density of population in K.P.K is ? 270 per sq. Km 235 per sq. Km 291 per sq. Km 196 per sq. Km 17 / 50 Markus is a travelling salesman for an apparel company. In this employment relationship, Markus is the ? agent principle signaler screener 18 / 50 For which agricultural produce Sudan is famous and which comes under Tropical Grassland Region ? Coffee Barley Millets Cotton 19 / 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 20 / 50 Which of the following is Not True about education in LDCs ? Economists unanimously agree that LDCs should put greater priority on primary education Boys are sent to schools far more often than girls 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 21 / 50 Modern societies are grappling with the notion of_________________? lowering the age at marriage eliminating marriage altogether allowing same-sex couples to marry none of the above 22 / 50 The refinancing rate is ? 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 rate the European Central Bank pays on reserves The interest rates the European Central Bank charges on loans to banks 23 / 50 In a cartel ? Firms collude Firms use price to win market share from competitors Price wars are common Firms compete against each other 24 / 50 The favorable evaluation of presidents is based on______________? the teflon principle dynamic political leadership the caretaker role strict adherence to the written Constitution 25 / 50 Multinational corporations face problems since they ? cannot benefit from the advantage of comparative advantage can only invest at home but not overseas may raise political problems in countries where their subsidiaries operate can only invest overseas but not at home 26 / 50 What is Debt Service ? Both of them Interest payments on external debts none of these repayments of external debt 27 / 50 The record of a country?s transactions in goods, services and assets with the rest of the world is its ? balance of trade current account capital account balance of payments 28 / 50 The first European people to form a nation were is________________? Picts Scots English Slavs 29 / 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 Financial regulation lender of less resort 30 / 50 The value of the marginal product of labor is ? none of these answers the wage of labor times the quantity of labor the price of the output times wage of labor the price of the output times the marginal product of labor 31 / 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 32 / 50 The rate of change for most of human history has been________________? unchanged slow until the Industrial Revolution then rapid slow because people are creatures of habit rapid since the beginning of history 33 / 50 Which are Pakistan major seasons for agriculture crop ? Kharif & rabi barani & rabi Kharif & Barani Kharif , Rabi 34 / 50 Estimated value that is added to a product or material to each stage, of its manufacture or distribution, is known as ? Excise Value addition Tax on stage Value added 35 / 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 36 / 50 Livestock sector accounts for nearly 36 percent of agriculture value added and about 9.0 percent of the ? GNP budget GDP export earnings 37 / 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 decrease in the demand for imports and an increase 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 38 / 50 Output fell sharply in the transition economies because ? there was little corporate control vital infrastructure was missing All of the above banks were unable to function 39 / 50 The Phillips curve indicates that there is a ? positive relationship between labor supply and the inflation rate negative relationship between the inflation rate and the unemployment rate positive relationship between the inflation rate and the employment the negative relationship between the inflation rate and labor demand 40 / 50 What is called the crop which is grown for sale rather than the farmer?s own use ? Money Crop Earning Crop Cash crop Business Crop 41 / 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 petrol from BP and petrol from shell coke and Pepsi 42 / 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 43 / 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 The changing world economy Rapid globalization 44 / 50 A positive externality generates ? none of these answers 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 45 / 50 In economic terms incomes are distributed according to________________? innate talent whom one knows a person?s marginal productivity which skills one has 46 / 50 Since state and nation are not the same thing the preferred term for individual political entities is_______________? dominions nation-sates or national states principalities territories 47 / 50 If price consumption curve will be horizontal on x-axes then elasticity of demand will be:___________? Less than 1 Equal to 0 Greater than 1 Equal to 1 48 / 50 Which of the following reduces risk in a portfolio the greatest ? Increasing the number of shares from 10 to 20 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 49 / 50 By financial crowding out economist mean ? Bank of England controls on commercial bank lending what the government borrows cannot be used for private investment credit rationing government borrowing drives up interest rates 50 / 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 Provide Your Information Your score is The average score is 0% LinkedIn Facebook Twitter 0% Restart quiz Send feedback Share on facebook Facebook Share on twitter Twitter Share on whatsapp WhatsApp PrevEconomics Quiz 3 Economics Quiz 5Next
