Economics Quiz 4

1 / 50

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

GDP

GNP

export earnings

budget

2 / 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

3 / 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 rates the European Central Bank charges on loans to banks

The interest rate the European Central Bank pays on reserves

4 / 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 enforce the agreement

costs incurred to reduce the pollution

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

5 / 50

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

principalities

dominions

nation-sates or national states

territories

6 / 50

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

rapid since the beginning of history

slow until the Industrial Revolution then rapid

unchanged

slow because people are creatures of habit

7 / 50

Which are Pakistan major seasons for agriculture crop ?

barani & rabi

Kharif , Rabi

Kharif & Barani

Kharif & rabi

8 / 50

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

291 per sq. Km

270 per sq. Km

196 per sq. Km

235 per sq. Km

9 / 50

An increase in price all other things unchanged leads to ?

An extension of supply

A shift in supply inwards

A contraction of supply

A shift in supply outwards

10 / 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.

11 / 50

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

screener

signaler

principle

agent

12 / 50

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

Value addition

Excise

Value added

Tax on stage

13 / 50

A profit maximizing firm is perfect competition produces where ?

Marginal revenue equals zero

Marginal revenue equals average cost

Marginal revenue equals marginal cost

Total revenue is maximized

14 / 50

By financial crowding out economist mean ?

Bank of England controls on commercial bank lending

credit rationing

what the government borrows cannot be used for private investment

government borrowing drives up interest rates

15 / 50

As the required reserve ratio is decreased the money multiplier ?

decrease

increase

could either increase or decrease

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

16 / 50

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

Money Crop

Business Crop

Cash crop

Earning Crop

17 / 50

Enacting legislation__________________?

all of the above

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

is a slow and painful process

involves negotiation and compromise

18 / 50

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

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

Increasing the number of shares from 20 to 30

19 / 50

Modern societies are grappling with the notion of_________________?

eliminating marriage altogether

lowering the age at marriage

none of the above

allowing same-sex couples to marry

20 / 50

The favorable evaluation of presidents is based on______________?

the teflon principle

strict adherence to the written Constitution

the caretaker role

dynamic political leadership

21 / 50

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

Sureties

Bond

Security bonds

Certificates

22 / 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

23 / 50

The value of the marginal product of labor is ?

the wage of labor times the quantity of labor

the price of the output times the marginal product of labor

the price of the output times wage of labor

none of these answers

24 / 50

In economic terms incomes are distributed according to________________?

which skills one has

a person?s marginal productivity

whom one knows

innate talent

25 / 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 the inflation rate and the employment the

positive relationship between labor supply and the inflation rate

26 / 50

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

balance of payments

current account

balance of trade

capital account

27 / 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

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 a decrease in the demand for foreign currency

28 / 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

weaken the power of trade unions

help small businesses

reduce unemployment

29 / 50

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

coke and Pepsi

kit-Kat chocolate snacks and Twix chocolate snacks

petrol from BP and petrol from shell

right shoes and left shoes

30 / 50

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

Equal to 0

Equal to 1

Less than 1

Greater than 1

31 / 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 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

32 / 50

What is Debt Service ?

none of these

Both of them

Interest payments on external debts

repayments of external debt

33 / 50

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

Cost of living adjustment

Cost effective adjustment

Comparative adjustment

Free adjustment

34 / 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 changing world economy

Rapid globalization

The call for more socially responsible marketing

35 / 50

The first European people to form a nation were is________________?

Scots

Slavs

Picts

English

36 / 50

The Generalized System of Preferences (GSP) program allows ?

developing country imports from advanced countries to receive preferential tariff treatment

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

37 / 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

38 / 50

A positive externality generates ?

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

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 above the demand curve (private value curve) for good

39 / 50

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

Millets

Coffee

Barley

Cotton

40 / 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

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

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

41 / 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

42 / 50

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

trade diversion effect

economy-of-scale effect

decrease customs costs

increased monopoly power of firms

43 / 50

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

$905

$975

$945

$1,095

44 / 50

Gross National Product equals ?

Net National Product plus net property income from abroad

Net National Product adjusted for inflation

Gross Domestic Product adjusted for inflation

Gross Domestic Product plus net property income from abroad

45 / 50

Multinational corporations face problems since they ?

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

cannot benefit from the advantage of comparative advantage

46 / 50

In a cartel ?

Firms compete against each other

Price wars are common

Firms collude

Firms use price to win market share from competitors

47 / 50

Group marriage ________________?

has been a consistent feature in Western societies

is widespread in several societies

is practiced among Australian aborigines

has never been consistently or extensively practiced

48 / 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

49 / 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

general

threatening

administrative

50 / 50

Output fell sharply in the transition economies because ?

All of the above

vital infrastructure was missing

banks were unable to function

there was little corporate control

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