Economics Quiz 54

1 / 50

According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ?

Devote excessive amounts of resources to agricultural production

Devote insufficient amounts of resources to agricultural production

Export products that are land-intensive

Import products that are land-intensive

2 / 50

Investment is ?

The purchase of stocks and bonds

When we place our saving in the bank

The purchase of capital equipment and structures

The purchase of goods and services

3 / 50

Americans proclaim the need for honesty but cheat on their tax returns This situation indicates that_____________?

the overt culture is consistent

Americans often follow a covert culture in actual behavior

there is no covert culture in the United States

people are only human

4 / 50

Women after divorce_______________?

need not do any of the menial housework

have a more difficult psychological adjustment than men

experience a 45 percent drop in income

all of the above

5 / 50

If a nation fitting the criteria for the small nation model imposes a 10 percent tariff on imports of autos ?

The price of autos within the nation will rise by less than 10 percent

The price of autos will not rise because of internal competition

The price of autos within the nation will rise by more than 10 percent

The price of autos within the nation will rise by 10 percent

6 / 50

Which of the following is Cottage Industry ?

Handicraft

Sugar

Cement

Textile

7 / 50

Unions achieve a higher wage differential the more _____ and the more ______?

inelastic the demand for labour, they can restrict the supply of labour

the economy is growing, people prefer leisure

members they have, aggressive they behave

the productivity is growing vacancies exist

8 / 50

Most societies________________?

discourage marriage

encourage marriage

accept all kinds of man-women unions

pay couples to have children

9 / 50

Without stabilized prices_______________?

the distribution of income becomes more inequitable

all of the above

product market demand is problematic

resource market demand is problematic

10 / 50

The exchange rate system that best characterizes the present international monetary arrangement used by industrialized countries is ?

freely fluctuating exchange rates

pegged or fixed exchange rates

managed floating exchange rates

adjustable pegged exchange rates

11 / 50

Simon S.Kuznets argues that the major stock of an economically advanced country is not its physical capital but ?

land

quantity of labor

body of knowledge

natural resources

12 / 50

The classical neoclassical monetarist Keynesian refers to the discipline of_____________?

sociology

psychology

anthropology

economics

13 / 50

Experiments are_______________?

not used in the study of humans

based on controlling a variable and observing the results

the most common method of social investigation

valid only if performed on white mice

14 / 50

Which is the largest continent (population wise) of the world ?

America

Asia

Australia

Europe

15 / 50

The World biggest oil refinery is situated in ?

Saudi Arabia

Kuwait

Iraq

Iran

16 / 50

Which of the following is not True ?

In 2001 internet users per 1000 people in middle income countries were greater than high income countries

In 1990 the world had 98 mainline phones and 2 mobile phones per 1,000 people: in 2001 169 mainline and 153 mobiles per 1000

Mobile phones do not require the massive infrastructure investment that mainline telephone require

In 2001 the World information technology expenditures were about 1/20 of 1% of world gross investment

17 / 50

Leontief?s result were considered paradoxical because the United Stated was believed to be ?

capital abundant relative to the rest of the world

All of the above

technologically efficient relative to the rest of the world

labor abundant relative to the rest of the world

18 / 50

Which of the following is true regarding the production and pricing decisions of monopolistically competitive firms? Monopolistically competitive firms choose the quantity at which marginal cost equals ?

marginal revenue and then use the supply curve to determine the price consistent with this quantity

average total cost and then use the demand curve to determine the price consistent with this quantity

average total cost and then use the supply curve to determine the price consistent with this quantity

marginal revenue and then use the demand curve to determine the price consistent with this quantity

19 / 50

At the intersection of AD and AS equilibrium is achieved in ?

the money markets

the goods market

all of these

the labor markets

20 / 50

Commodity money ?

has intrinsic value

is used as reserves to back fiat money

has no intrinsic value

is used exclusively in the economies of western Europe and north America

21 / 50

In the EMU a country?s competitiveness can change because of ?

devaluation

domestic wage and price adjustment

central bank intervention in the Forex

interest rate adjustment

22 / 50

If inflation is 8 percent and the real interest rate is 3 percent, then the nominal interest rate must be ?

5 percent

24 percent

11 percent

3/8 percent

23 / 50

The idea of convergence of GDP in Europe suggests that ?

Poorer less developed countries will catch up with richer ones.

Poorer countries have higher capital/labour ratios than richer countries.

The gap between countries GDP per head will widen

All countries will eventually join the EEC

24 / 50

Identify below those who are not stakeholders in a company ?

Customers

Owners

Employees

None of the above

25 / 50

Which of the following is not an argument for protectionism ?

To Protect strategic industries

To improve the balance of payments

To increase the level of imports

To protect infant industries

26 / 50

The Gini coefficient is ?

a commonly used measure of the degree of inequality in an income distribution

the ratio of the percentage of total income received by the top 20% of families to the percentage of total income received by by the bottom 20% of families

a commonly used measure of the degree of inequity in an income distribution

the most common way of representing the income distribution graphically

27 / 50

A country?s transactions with the rest of the world are recorded in the ?

balance of financial transactions

balance of international indebtedness

income statements

balance of payments

28 / 50

According to functionalism the fundamental human needs are_____________?

life liberty and the pursuit of property

control over nature and the denial of death

income safety and deference

survival and expressiveness

29 / 50

Which of the following is a response to People?s inconsistent behavior over time ?

all of these answers

forced contributions to a retirement plan

efficiency wages

year-end bonuses

30 / 50

A medium-term plan can be a(n) ________ revised at the end of each year?

instrument variable

perspective plan

seasonal expenditure

rolling plan

31 / 50

Democratic capitalism means that________________?

all property belongs to the government

the economy is regulated through legislation and taxation

the individual is free to do anything as long as he/she has money

losers totally destroyed

32 / 50

Which of the following is referred by the Debt retirement ?

To write-off debt

The complete repayment of debt

To repay debt in easy installments

To reschedule debt

33 / 50

Correlation differs from causation in that correlation ?

occurs among more than two variables

occurs purely by chance

precedes causation

only indicates a probable relation

34 / 50

According to Blau and Duncan occupational upward mobility is greatly influenced by______________?

occupation of the father

all of the above

the nature of the first job

the amount of education

35 / 50

According to supply-side economists if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?

aggregate supply will increase aggregate output will increase and the price level will increase

aggregate supply will increase , aggregate demand will decrease

aggregate supply will increase, aggregate output will increase and the price level will decrease

both aggregate supply and demand will increase and the price level will increase

36 / 50

Which is NOT a restraint imposed on the United States government ?

Federalism

Checks and balances

Separation of powers

Presidential supremacy

37 / 50

Social organization in the city brought ALL BUT which one of these changes ?

Formal agencies of control multiplied

Primary group ties became less important

Families became nuclear

The class structure became more rigid

38 / 50

Federal legislation has sometimes been prompted by_____________________?

outright opposition by state governments to federal law

a general lack of financial resources and professional expertise at the state level

all of the above

inefficiency and sluggishness of state administrations

39 / 50

Which of the following is a non-metallic mineral ?

Cobalt

Gypsum

Uranium

Thorium

40 / 50

Which of the following is an agricultural produce of Taiwan ?

Maize

Rice

Coffee

None of these

41 / 50

Where one stands in the social hierarchy is intimately related to________________?

how long one lives

how much stress one experiences

how one performs one,s job

only B and C

42 / 50

Which of the following statement is not true about LDCs ?

Most LDCs have less than 1/10 the per capita GNP of the U.S

Most LDCs have a greater shortage of qualified teachers than the U.S does

A greater share of GNP would have to be devoted to education to attain the same primary enrollment rates as in the U.S

Setting up western labor standard and minimum wages in labor-abundant LDCs is sensible

43 / 50

If the quantity demanded of beef increases by 5% when the price of chicken increase by 20% the cross-price elasticity of demand between beef and chicken is ?

0.25

-4

-0.25

44 / 50

Given recent information about growth trends and growth potential of ethnic populations within the U.S market which of the following ethnic groups would be a best bet to double during the next half century and become one of the U.S market?s most viable segments ?

Hispanics and Asians

Middle Eastern

Western Europeans

African Americans

45 / 50

Which of the following help explain why firms pay bonuses to workers during particularly profitable years to prevent workers from becoming disgruntled ?

People care about fairness

people are rational maximizers

People are reluctant to change their minds

People are inconsistent over time

46 / 50

The arrangement where goods imported from trading partners in the developing world are subject to lower tariff rates than goods from other countries is referred to as ?

offshore assembly provisions

Generalized System of Preferences

normal trade relation status

most favored nation status

47 / 50

Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flows from poor to rich countries by ?

the fat that the DC capital market is perfectly competitive

the law of increasing returns that implies that the marginal productivity of capital is higher in LDCs

the price role of political and credit-market risk in many LDCs

the brain drains from LDCs to DCs

48 / 50

Permanent income is ?

wages fixed by a union or other labour contract

none of these answers

a person?s normal or average income

Social Security income of the elderly and disabled

49 / 50

What is price support ?

Maintenance of price through public subsidy or government intervention

To enhance price

To maintain price at specific level

To increase price artificially

50 / 50

The cause of inflation is ?

Fall in production

Decrease in money supply and fall in production

Increase in money supply and fall in production

Increase in money supply

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