Economics Quiz 51

1 / 50

Which of the following is not true regarding the outcome of a consumer?s optimization process ?

The marginal rate of substitution between goods is equal to the ratio of the prices between goods

The consumer is indifferent between any two points on his budget constraint

The consumer?s indifference curve is tangent to his budget constraint

The marginal utility per dollar spent on each good is the same

2 / 50

Marxists are most interested in_______________?

nationalistic revolutionary movements

coups d,etat

guerrilla fighting

class revolutionary movements

3 / 50

Fascism_______________?

refuses violence

stresses a belief in human equality

appeals to intellectuals

distrusts reason

4 / 50

The democratic state is based on the social contract theories of Locke and Rousseau These theories maintain that ?

people must obey the rulers at all times

a society cannot exist without authoritarian rulers

the people allow themselves to be governed for their own good

the rulers govern at the direction of God

5 / 50

When the stock market is down falling it is called ?

Crashing

Falling

Bearish

Bullish

6 / 50

The marginal tax rate is ?

your total income divided by the total amount of tax you pay.

the tax rate you pay on any additional income that you earn.

the additional tax you pay divided by your total income

the total amount of tax you pay divided by your total income

7 / 50

The marginal productivity of labor_________________?

all of the above

is complicated by overlapping labor markets

concerns wage rates and labor supply

is a political as well as economic issue

8 / 50

In C.Wright Mill,s view what group constitutes an elite ?

High ranking military officers only

The military-industrial-governmental complex

Church leaders and educators

The corporate rich only

9 / 50

Which of the following could not be considered a major economic system ?

physical quality of life index

communism

capitalism

socialism

10 / 50

Which of the following would shift the long-run Phillips curve to the right ?

An increase in the minimum wage

An increase in the expected inflation

An increase in the aggregate demand

An increase in the price of foreign oil

11 / 50

Marx believed that the state would vanish when_____________?

all societies became capitalist

the elite would work toward the good of the masses

the lion would lie down with the lamb

social classes ceased to exist

12 / 50

Which of the following must always balance ?

Balance of invisible trade

Balance of payments

Balance on the current account

Balance of visible trade

13 / 50

In one sense of the term everyone is ethnocentric This is because______________?

people are afraid and distrustful of strangers

it is impossible to understand another culture or subculture without having been raised in it

it is virtually impossible not to view people and situations in terms of some of the norms and categories derived from one,s own cultural experiences

people are intolerant by nature

14 / 50

A graph showing all the combinations of goods and services that can be produced if all of society?s resources are used efficiently is a ?

Lorenz curve.

Circular-flow diagram.

Production possibility curve.

capital consumption frontier.

15 / 50

Canada France, Germany, Italy, Japan, The United Kingdom and United States are ?

countries with decreasing TFP growth since 1990s

countries with the lowest information technology equipment and software index prices

G-7 countries

countries with highest productivity growth in the world since 1960

16 / 50

Before the 1978 reforms China had a(n) ?

agricultural bank only

housing savings banks

urban credit cooperatives

mono bank system

17 / 50

Failure to make timely payment of interest or principal on a debt security or to otherwise comply with the provisions of a bound indenture is called ?

Rescheduling

Rolling debt

Bad debt

Default

18 / 50

Which of the following is not a Cash Crop ?

Wheat

None of these

Cotton

Surgarcane

19 / 50

The Short run Phillips curve can shift in response to changes in ?

wage rates

Inflationary expectations

the inflation rates

unemployment

20 / 50

Kharif crop includes ?

All of them

Cotton and maize

Rice & Sugarcane

Bajra and Jawar

21 / 50

Country A has an absolute advantage in ?

Wine

Beer

neither products

Both products

22 / 50

Refer to Exhibit 4. Which of the following is true with regard to the burden of the tax in Exhibit 4 ?

The buyers pay a larger portion of the tax because demand is more elastic then supply

The sellers pay a larger portion of the tax because supply is more elastic than demand

The buyers pay a larger portion of the tax because demand is more inelastic than supply

The sellers pay a larger portion of the tax because supply is more inelastic than demand

23 / 50

Catalog marketing is big business in the United States. The average house hold receives __________ catalogs per year?

100

24 / 50

If, for any reason the wage is held above the competitive equilibrium wage?

The quality of workers in the applicant pool will tend to fall

Unions will likely Strike and the wage will fall to equilibrium

The quantity of labour supplied will exceed the quantity of labour demanded and there will be Unemployment

The quantity of labour demanded will exceed the quantity of labour supplied and there will be a labour shortage

25 / 50

Which exchange rate system does not require monetary reserves for official exchange rate intervention ?

floating exchange rates

managed floating exchange rates

pegged exchanged rates

dual exchange rates

26 / 50

A tax placed on a good that is a necessity for consumers will likely generate a tax burden that ?

falls more heavily on sellers

is evenly distributed between buyers and sellers.

falls entirely on sellers

falls more heavily on buyers.

27 / 50

If an input necessary for production is in limited supply so that an expansion of the industry raises costs for all existing firms in the market, then the long-run market supply curve for a good could be ?

perfectly inelastic

upward sloping

perfectly elastic

downward sloping

28 / 50

Poverty is related to_______________?

lack of work ethic

technological changes only

discrimination only

patterns of prejudice and technological change

29 / 50

Prejudice and discrimination______________?

have never existed toward diverse religious groups

none of the above

have been a part of the relationships among diverse religious groups

are tenets of some religions

30 / 50

The multiplier is calculated as___________?

1/MPS

1(1-MPC)

1/MPC

a or b

31 / 50

A good example of a primary group is_________________?

the U.S Army

a family

all of the above

AT&T Corp

32 / 50

Which of the following statements is normative ?

Printing too much money causes inflation

The unemployment rate should be lower

People work harder if the wage is higher

Large government deficits cause an economy to grow more slowly

33 / 50

Columbia?s Jagdish Bhagwati criticizes United States administrations inability to distinguish between benefits of free trade ?

and the external openness of income growth among the poorest 40 percent of LDCs

and the dangers of a trade deficit

and MNC domination and its effects on income distribution

and the dangers of free capital movements for LDCs with poorly developed financial institutions

34 / 50

According to supply side economists as tax rates are reduced labour supply should increase. This implies that ?

The substitution effect of a wage change is greater than the income effect of a wage change

There is no substitution effect when tax rates are changed

There is no income effect when tax rates are changed

The income effect of a wage change is greater than the substitution effect of a wage change.

35 / 50

Profit is measured by ?

Revenue ? fixed costs

Revenue ? total costs

Fixed cost + revenue

Revenue ? sales

36 / 50

In the short run, the supply of capital is ________ and in the long run will depend on _______?

fixed, expectations

variable, technology

variable, interest rates

fixed, rental rate of capital

37 / 50

A market is defined as perfectly contestable if ?

entry to it is costly, but exit from it is costless

entry to it and exit from it are both costly

entry to it and exit from it are both costless

entry to it costless, but exit from it is costless

38 / 50

The psychodynamic theories of personality are associated with________________?

Jean Piaget

George Herbert Mead

Charles Horton Cooley

Sigmund Freud

39 / 50

In Porter?s five force model conditions are more favorable for firms within an industry if ?

Supplier power is high

Substitute threat is high

Buyer power is high

Entry threat is low

40 / 50

Many economics argue that resale price maintenance ?

is price fixing and therefore, is prohibited by law and enhances the market power of the producer

is price fixing and, therefore is prohibited by law

enhances the market power of the producer

has a legitimate purpose of stopping discount retailers from free riding on the services provided by full services retailers?

41 / 50

_________ is below the income that secures the bare essentials of food clothing and shelter ?

Income inequality

purchasing power poverty

sen?s poverty index

Absolute poverty

42 / 50

To maximise sales revenue a firm should produce where ?

Marginal revenue equals marginal cost

Marginal revenue is zero

Marginal revenue is maximised

Marginal cost is zero

43 / 50

The migration of employable workers from low-paying nations to high-paying nations tends to decrease ?

wage disparities

the productivity of labor

business or capitalist income in the world

total wage income in the world

44 / 50

Which of the following statements is true regarding the long-run aggregate supply curve? The long-run aggregate supply cruve ?

shifts left when the natural rate of unemployment falls

is positively sloped because price expectations and wages tend to be fixed is the long run

shifts right when the government raises the minimum wage

Is vertical because an equal change in all prices and wages leaves output unaffected

45 / 50

What was the top timber producing country ?

China

United States

Brazil

India

46 / 50

The family-and particularly marriage-binds its members through_______________?

educational functions

class conflict

legal and economic bonds

interfaith competition

47 / 50

Even in a democracy the state can________________?

imprison persons

deprive people of their lives

all of the above

size property

48 / 50

When an individual buys a car in a congested urban area, it generates ?

an efficient market outcome.

a positive externality

a technology spillover

a negative externality

49 / 50

If an increase in the budget deficit reduces national saving and investment we have witnessed a demonstration of ?

crowding out

the investment fund effect

equity finance

intermediation

50 / 50

Which of the following does NOT appear to be a factor in divorce_______________?

dramatic differences in family backgrounds

differences in occupational goals and careers

pregnancy shortly after marriage

marriage after an engagement of over three years

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