Economics Quiz 52

1 / 50

If the cross-price elasticity between two goods is negative the two goods are likely to be ?

substitutes

necessities

luxuries

complements

2 / 50

What is Euro ?

European currency unit, introduced on January 1, 1999

None of them

Deposit outside one?s home country but in the home country currency

Both of them

3 / 50

When one firm in the breakfast cereal market started an advertising campaign that stressed the nutritional value of its cereals, all other cereal manufacturers started similar advertising campaign This suggests that the breakfast cereal market is ?

monopolistically competitive

perfectly competitive

indeterminate from this information

oligopolistic

4 / 50

The total amount of tax you pay divided by your total income is the ?

marginal tax rate

proportional tax rate

average tax rate

total tax rate

5 / 50

A modern definition of class maintains that social class is constituted by____________?

persons who have similar forms of power prestige or wealth

the owners of the means of production

categories of people set up by governments

people especially endowed by nature

6 / 50

Concerning import tariffs of the United States empirical studies tend to conclude that these tariffs are ?

proportional and thus bear down on all consumers in the same manner

deflationary and thus result in reductions in the price of imports

Progressive and thus bear down on the wealthy

regressive and thus bear down on the poor

7 / 50

Which of the following statements regarding the market for foreign currency exchange is true ?

An increase in Pakistan?s net capital outflow increase the supply of rupees and the rupees appreciate

An increase in Pakistan?s net capital outflow increase the demand of rupees and the rupees depreciate

An increase in Pakistan?s net capital outflow increase the supply of rupees and the rupees depreciate

An increase in Pakistan?s net capital outflow increase the demand of rupees and the rupees appreciate

8 / 50

Urbanism is defined as________________?

the migration of people from rural to urban centers

a set of attitudes and a way of life distinct from the rural

the study of the growth and decline of populations

the growth of cities and suburbs at the expense of rural areas

9 / 50

The leading producer of silver is ?

Russia

South Africa

Mexico

USA

10 / 50

Periods of less than full employment corresponds to _________________ ?

points outside the production possibility curve

either points inside or outside the production possibility curve.

points inside the production possibility curve.

points on the production possibility curve

11 / 50

Different capital intensity in different industries is mainly explained by _______ and ________?

patents, skill shortages

technology, the ease of factor substitution

government grants, international competition

wage differentials, skill levels

12 / 50

Bank issued a document that authorizes the bearer to receive money from one of its foreign branches or from another bank abroad. What such document is called ?

Letter of intent

Letter of expression

Demand draft

letter of Credit

13 / 50

Which of the following groups suffer the most from inflation ?

Creditors

Business class

None of these

Debtors

14 / 50

What is called the tax that is levied on retail price of merchandise collected by retailer ?

Local Tax

Sales Tax

Gross Tax

General Tax

15 / 50

With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?

reduced

unaffected

None of these

increased

16 / 50

Refer to Exhibit 4. Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer?s income is ?100 If the price of a belt is ?10 and the price of a pair of socks is ?5, the consumer will choose to buy the commodity bundle represented b point ?

the optimal point cannot be determined from this graph

17 / 50

To be allocatively efficient a firm must produce where ?

The price equals the average cost

The price equals the marginal cost

The average revenue equals the marginal revenue

The total cost equals demand

18 / 50

Recent events vividly demonstrate that nationalism is_______________?

the bastion of freedom and world peace

at most a quaint reminder of past political cultures

dead

the source of wars and atrocities

19 / 50

A reasonable measure of the standard of living in a country is ?

Real GDP

nominal GDP per person.

The growth rate of nominal GDP per person

real GDP per person

20 / 50

Which of the following countries lead in the production of Nickel ?

Russia

China

Canada

USA

21 / 50

Which of the following issues is related to microeconomics ?

The impact of money on inflation

The impact of technology on economics growth

The impact of the deficit on saving

the impact of oil prices on car production

22 / 50

The degree of urbanisation of any given community is indicated by its?

population size

population density

population heterogeneity

All of the above

23 / 50

________ is the practice of adopting policies and developing strategies that both sustain the environment and produce profits for the company ?

Consumerism

Consumer accountability

Environmental sustainability

Environmentalism

24 / 50

In perfect competition ?

The price equals the marginal revenue

the fixed cost equals the variable costs

the price equals the total cost

the price equals the average variable cost

25 / 50

Trade diversion takes place when ?

economic integration results in a movement in product origin to a lower cost member country

a country moves from autarky to free trade

a movement to a customs union reduces the costs of trade through standardization economic integration results in a

economic integration results in a shift in product origin from a lower-cost, nonmember country to a member country having higher costs

26 / 50

In sociological studies of race and ethnic relations_______________?

minority refers to an oppressed group

minorities are described on the basis of biology

minority refers to the smaller group

majority represents the group in power because of its large numbers

27 / 50

The family is the prime example of a(n) ?

secondary group

primary group

Gesellschaft

voluntary group

28 / 50

To some degree according to some research heredity determines_____________?

leadership abilities

sociability

the ability to control impulses

all of the above

29 / 50

As the required reserve ratio is decreased the money multiplier ?

increases

could either increase or decrease

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

decreases

30 / 50

If the GNP increases by 8% and prices increase by 3% the actual growth rate is_______________?

11%

31 / 50

Monetary policy is regulated by ?

Money lenders

Central Bank

Government policy

Private entrepreneurs

32 / 50

How much of the total potential labour force is unemployed ?

2.42 million

2.76 million

2.65 million

2.82 million

33 / 50

Among the changes in the family institution which is false ?

there has been an increase in voluntary childlessness

the birthrate has greatly declined

families have gotten larger

marriage rates have declined

34 / 50

Suppose consumer tastes shift toward the consumption of apples Which of the following statements is an accurate description of the impact of this event on the market for apples ?

There is an increase in the quantity demanded of apples and in the supply for apples

There is an increase in the demand for apples and an increase in the quantity supplied of apples.

There is an increase in the demand and supply of apples.

There is an increase in the demand for apples and a decrease in the supply of apples

35 / 50

The European Union is an example of a/an ?

customs union

free trade area

common market

economic union

36 / 50

The technological revolution that led to the control of food production is called the_______________?

Paleolithic revolution

Agricultural revolution

Industrial revolution

Cultural revolution

37 / 50

A monetary union means ________, ________ and ________?

a common currency a single central bank, common monetary policy

permanently fixed exchange rates, free capital movements, a single interest rates

a common currency floating exchange rates common monetary policy

permanently fixed capital movements floating exchange rates a fixed structure of interest rates

38 / 50

According to the text the most dramatic of the environments that affect marketing and appears to be now shaping our world is the ___________ environment?

economic

demographic

natural

technological

39 / 50

Which is the oldest hydroelectricity project in Pakistan ?

Warsak

Malakand Dargai

Mangla

Tarbela

40 / 50

According to the wealth effect aggregate demand slopes downward (negatively) because ?

lower prices increase money holding decrease lending, interest rates rise and investment spending falls

lower prices reduce money holding increase lending, interest rates fall and investment spending increase

lower prices decrease the value of money holding and consumers spending decrease

lower prices increase the value of money holding and consumers spending increase

41 / 50

Billy Graham,s religious revival meetings are an example of_________________?

social movements

people, s fear of the unknown

expressive crowds

spiritual awakening

42 / 50

Skilled labor is relatively scarce because ?

there are too few teachers

teachers? salaries are too low

too few student places in higher education

it is costly to acquire human capital

43 / 50

Which of the following is not a possible cost of high fertility rates and rapid population growth ?

increased urbanization and congestion

a higher labor force growth rate and higher unemployment

a working population that must support a large number of dependents

increasing returns to natural resources with a direct impact on average food consumption

44 / 50

The record of a country?s imports and exports of of goods and services plus net investment incomes and current transfers of money to and from abroad, is called its ?

visible trade balance

balance of trade

balance of payments

balance of payments on current account

45 / 50

A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as ?

a regressive tax

an equitable tax

a proportional tax

a progressive tax

46 / 50

If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?

rise; falls; rises; deficit

is static; low; rise; deficit;

falls; falls; falls; surplus

falls; rise; falls; surplus

47 / 50

If income where to double and prices were to to double the budget line would ?

stay the same

rotates outward

shift outward in a parallel fashion

rotate inward

48 / 50

Small nations whose trade and financial relationships are mainly with a single partner tend to utilize ?

crawling exchange rates

managed floating exchange rates

pegged exchange rates

freely floating exchange rates

49 / 50

Empirical evidence regarding in the effects of currency depreciation on the balance of trade indicates that?

depreciation has no effect on the trade balance

depreciation generally hurts the trade balance

no strong generalization is possible

depreciation generally improves the trade balance

50 / 50

Government of Pakistan issues currency on the basis of__________________?

Availability of gold in the country

Demand for money in the country

Availability of dollars in the country

Tax collection

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