Economics Quiz 78

1 / 50

If a maximum price is set below equilibrium there will be ?

A price increase

Excess supply

Excess demand

A price fall

2 / 50

Purchases of government securities in the United States by foreigners is ?

a debit item in the current account

a credit item in the current account

a debit item in the capital account

a credit item in the capital account

3 / 50

The ecosystem is__________________?

what Hobbes called the ?state of nature?

the way living things interact and interrelate with each other and their environments

the way inanimate objects are placed into the natural system

a systematic application of the economy

4 / 50

The United States Canada Northern and Western Europe among other areas are________________?

still trying to curb population growth

threatened by under population

in the third stage of the demographic transition

in the first stage of the demographic transition

5 / 50

The length of a business cycle would be measured from ?

trough to peak

peak to peak

the slump to the expansion

peak to trough

6 / 50

Human wants are_______________?

Limited

Always fixed

Likely to decrease over time

Unlimited

7 / 50

The term ?rent? as it is used by economists. refers to ?

the return to any factor of production that is in fixed supply

the profit earned by the owner of any housing unit.

the amount paid each year by a tenant for an apartment

any profit earned by stockholders when they sell their stock

8 / 50

The balance of payment is ?

Total liabilities of a nation

Shortfall in budget

Total sum a state owned

Balance between a nation?s expenditure on imports and its receipts from exports

9 / 50

Suppose the price level falls but because of fixed nominal wage contracts the real wage rises and firms cut back on production This is a demonstration of the ?

sticky-price theory of the short run aggregate supply curve

sticky-wage theory of the short-run aggregate supply curve

classical dichotomy theory of the short-run aggregate supply curve

misperceptions theory of the short-run aggregate supply curve

10 / 50

If A forms a customs union with C, the value of trade diversion will be ?

$20,000

$10,000

$40,000

11 / 50

Country A has the comparative advantage in ?

Wine

Both wine and beer

Beer

Neither wine nor beer

12 / 50

What is called the result of a state?s borrowing from its population, from foreign governments or from international institutions ?

National debt

Public debt

None of them

Both of them

13 / 50

A reduction in interest rates, causes an increases in the monetary base that results in an _________ in the availability of consumer credit and a ________ in the cost of consumer credit?

reduction, increase

increase , increase

increase, reduction

reduction, reduction

14 / 50

According to Lewis?s model the dual economy grows only when ?

modern manufacturing sector is labor intensive

the modern sector increases its output share relative to the traditional sector

agricultural sector uses modern equipment

agricultural sector hires labor economically

15 / 50

The popularity of spaghetti in the United States resulted from_______________?

an innovation in agriculture

the discovery of noodles

the invention of pasta machines

diffusion

16 / 50

Within the circular flow of income, an increase in domestic income will tend to increase ?

taxes

imports

exports

inventories

17 / 50

Structural economists from the United Nations Economic Commission for Latin America (ECLA) emphasized ?

currency devaluation

contractionary monetary and fiscal policies

long-run institutional and structural economic change

short term-adjustment with a human face

18 / 50

In the short term a firm will produce provided the revenue ?

covers total costs

covers revenue

covers variable costs

covers fixed costs

19 / 50

The most wave of globalization which began in the 1980s has emphasized the outsourcing of ?

services and white-collar jobs

natural resource extraction and mining jobs

manufacturing and blue-collar jobs

agriculture and farming jobs

20 / 50

The traditional profit-maximizing theory of the firm has been criticized by some economists because ?

firms do not know how to maximize profits.

it does not explain monopolistic competition

Both the first and second option

firms have other aims

21 / 50

Rice account for 6.6 percent in value added in agriculture. What is its contribution in GDP ?

19%

6.10%

1.60%

22%

22 / 50

CEO stands for_______________?

capital employment outlay

chief executive officer

clear everybody out

Caribbean Entrepreneurs Office

23 / 50

Which of the following statement about rural and agricultural development is true ?

China?s rural population receives little income from nonfarm income

Household nonfarm income is uncorrelated to farm productivity and uncorrelated to farm productivity and household incomes in Kenya

The agrarian community requires a full range of services such as schools merchants banks and so on

Rural development is the same as agricultural development

24 / 50

Roberto and Thomas live in a university hall of residence Roberto values playing loud music at a value of ?100. Thomas values Pease and quiet at a value of ?150. Which of the following statements is true ?

It is efficient for Roberto to stop playing loud music regardless of who has the property right to the level of sound

It is efficient for Roberto to stop playing loud music only if Thomas has the property right to peace and quiet

It is efficient for Roberto to stop playing loud music only if Roberto has the property right to play loud music

it is efficient for Roberto to continue to play loud music

25 / 50

The last stage in the selling process in the __________ stage?

handling objections

closing

follow-up

Approach

26 / 50

Investment in agriculture sector is Rs ?

45.1 billion

50.9 billion

45.9 billion

49.9 billion

27 / 50

Total increases from Rs500 to Rs600 when output increases from 20 to 30 units. Fixed costs are Rs200 Which of the following is true ?

Variable cost rises by Rs100

Marginal cost is Rs20

Average fixed cost is Rs10

Average cost falls

28 / 50

An individual learns to be a human being by______________?

socialization

cosmic influences

in our society watching television

instincts

29 / 50

In Nash equilibrium each player chooses the best strategy ?

given the strategies of other players

Assuming other players move first

dominated by the other players

that is a credible threat

30 / 50

A country?s capital stock is the ?

difference between GDP and capital consumption

sum of previous gross investment minus depreciation

approximated investment minus actual investment

inflow of investment from abroad

31 / 50

Economic growth can be shown by ?

An outward shift of the production possibility frontier

A decision by the government to produce inside the production possibility frontier

A movement along the production possibility frontier

An inward shift of the production possibility frontier

32 / 50

In a cartel member firms may be given a fixed amount to produce. This is called a ?

Quotient

Quota

Factor

Limit

33 / 50

Unemployment means that ?

there are some people who will not work at the going wage rate.

people are not willing to work at the going wage rate.

at the going wage rate, there are people who want to work but cannot find work.

there is excess demand in the labour market

34 / 50

The federal government has increased its responsibilities at the local level because_____________?

the tenth amendment

excess state revenues

the states inefficiency

urban influence on the states

35 / 50

The main problem facing societies with a surplus is_____________________?

what to produce how produce it and for whom to produce it

there is no problem it is divided equally

how to keep it away from enemies

how to get rid of it

36 / 50

Lean production________________?

combines the best features of craft and mass production

All of the above

pushes responsibility down the organizational ladder

has as its goal perfection

37 / 50

Suppose that the demand curve for tin is highly inelastic. If the supply curve of tin decrease and increase cyclically along the demand curve for tin then in this market the size of the price fluctuation will be __________ the size of the quantity fluctuations?

the same as

any of the above

relatively less than

relatively greater then

38 / 50

Governments may contribute to inflationary pressure because of building up large ?

budget deficits

numbers of employees

expenditures

welfare plans

39 / 50

Throughout most of humankind?s existence, population grew at a rate of ________ per year?

0.00%

0.50%

10%

40 / 50

An example of unconscious socialization would be____________________?

correcting child?s use of worlds

child absorbing parents? attitudes toward race

child taught to read

child taught to use knife and fork

41 / 50

According to Karl Marx_______________?

classes are composed of the have-nots who eventually revolt against the haves

classes are the result of different life styles

status is also a phenomenon of stratification

classes are determined by the relationship of a group in society to the means of production

42 / 50

Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the sellers is the area ?

C + F

43 / 50

Futurist Alvin Toffler called his concept_______________?

myocardial shock

static shock

future shock

culture shock

44 / 50

Industrial Revolution__________________?

eliminated social classes

made all social classes equal

created a class of industrial workers

none of the above

45 / 50

Which of the following statements about trade policy is true ?

A country?s trade policy has no impact on the size of its trade balance

A restrictive imports quota increases a country?s net exports

None of these answers

A restrictive import quota decreases a country?s net exports

46 / 50

Today?s Catholic Church is classified as a________________?

national state

nongovernmental organization

nationless state

intergovernmental organization

47 / 50

Constitutions are________________?

always written

meant to establish the rule of men

intended to limit governmental power

blueprints for monarchies

48 / 50

The teenage birthrate_______________?

is highest among white teenagers

has declined in the past several years

has soared in the past two years

none of the above

49 / 50

The total forest area of Punjab is ?

1.69 million hectares

0.89 million hectares

0.989 million hectares

0.96 million hectares

50 / 50

David Ricardo?s theory in favor of free trade uses the ideal of ?

multilateral advantage

comparative advantage

mutual advantage

absolute advantage

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