MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 18 Mcqs, each offering curated multiple-choice questions to sharpen your Economics knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Which of the following statement is NOT true about OECD aid ? |
| A. | During the 1980s OECD countries contributed four fifths of the world’s bilateral official development assistance to LDCs |
| B. | In the early 1990s the OECD contributed 98 percent of all aid |
| C. | The OECD aid increased from $6.9 billion in 1970 to $8.9 billion in 2001 |
| D. | In 2001, only Denmark Norway, Sweden, the Netherlands, and Luxembourg exceeded the aid target for LDCs |
| Answer» D. In 2001, only Denmark Norway, Sweden, the Netherlands, and Luxembourg exceeded the aid target for LDCs | |
| 2. |
U.S total official development assistance to developing countries is ? |
| A. | lowest among the OECD countries |
| B. | higher currently than it was in the 1960s and 1970s |
| C. | is equivalent to Holland’s aid |
| D. | None of the above statements is true |
| Answer» E. | |
| 3. |
The U.S real food aid, as well as food reserves dropped from the 1960s to the 1980s partly because ? |
| A. | the transportation and storage cost increased tremendously |
| B. | proponents of basic-needs attainment opposed food-aid |
| C. | U.S farm interests wanted to reduce surplus grain stocks |
| D. | agricultural production suffered excessively due to weather changes |
| Answer» D. agricultural production suffered excessively due to weather changes | |
| 4. |
The IMF is an agency charged with providing ? |
| A. | technical assistance to stock market and financial market problems |
| B. | loans for post-World War II reconstruction |
| C. | short-term credit for international balance of payments deficits |
| D. | bonds denominated in U.S dollars as a loan to LDCs |
| Answer» D. bonds denominated in U.S dollars as a loan to LDCs | |
| 5. |
The balance on current account ?_x005F_x000D_I- equals the absolute value of the balance on capital account_x005F_x000D_II- is financed by savings_x005F_x000D_III- is net grants minus remittances_x005F_x000D_IV- includes goods services and unilateral transfers |
| A. | I and II only |
| B. | II and III only |
| C. | I and IV only |
| D. | None of the above |
| Answer» D. None of the above | |
| 6. |
MNCs can help the developing country to ?_x005F_x000D_I- Finance a savings gap or balance of payments deficit_x005F_x000D_II- Obtain foreign technology by adapting existing processes_x005F_x000D_III- Generate appropriate technology by adapting existing processes_x005F_x000D_IV- Employ domestic labor, especially in skilled jobs |
| A. | I and II only |
| B. | III and IV only |
| C. | I, II and III only |
| D. | I, II, III and IV |
| Answer» E. | |
| 7. |
Japan’s programs ?_x005F_x000D_I- are understaffed politically muddled and administratively complex_x005F_x000D_II- are biased toward Asia_x005F_x000D_III- go primarily to less developed countries in Africa_x005F_x000D_IV- focus on loans and the grant element of aid is low |
| A. | I, II and III |
| B. | I, II and IV |
| C. | II, III and IV |
| D. | I, II, III and IV |
| Answer» C. II, III and IV | |
| 8. |
In a portfolio investment ? |
| A. | investors are directly involved in managing the operations |
| B. | as in direct investment investors export goods and services abroad |
| C. | investors transfer the technology to local investors |
| D. | investors have no control over operations |
| Answer» E. | |
| 9. |
I = S + F The equation above states that a country can increase its new capital formation (or investment) through is ? |
| A. | own domestic savings and by inflows of capital from abroad |
| B. | stock market and fiscal policy |
| C. | savings from abroad and financial outflow |
| D. | savings and financial liberalization |
| Answer» B. stock market and fiscal policy | |
| 10. |
Hollis Chenery and Alan Strout identity three development stages in which growth proceeds at the highest rate permitted by the most limiting factors These factors are ?_x005F_x000D_I- the skill limit_x005F_x000D_II- the savings gap_x005F_x000D_III- the fiscal gap_x005F_x000D_IV- the foreign exchange gap |
| A. | I and II only |
| B. | II and IV only |
| C. | I, II and III only |
| D. | I, II and IV only |
| Answer» E. | |
| 11. |
For Harvard’s Dani Rodrik Globalization involves ? |
| A. | decreasing autonomy of the nation-state involves |
| B. | the increasing international integration of markets for goods services and capital |
| C. | changes of a traditional culture of a country to a western culture |
| D. | giving aid to poor countries to improve their economy politics and social status |
| Answer» C. changes of a traditional culture of a country to a western culture | |
| 12. |
Dani Rodrik points out that ? |
| A. | an economy more open to foreign trade and investment faces a more inelastic demand for unskilled workers |
| B. | employers and consumers can more readily replace domestic workers with foreign workers by investing abroad or buying imports |
| C. | globalization increases job insecurity |
| D. | financial liberalization in LDCs leads to collapse of the economy |
| Answer» D. financial liberalization in LDCs leads to collapse of the economy | |
| 13. |
Columbia’s Jagdish Bhagwati criticizes United States administrations inability to distinguish between benefits of free trade ? |
| A. | and the dangers of free capital movements for LDCs with poorly developed financial institutions |
| B. | and the dangers of a trade deficit |
| C. | and the external openness of income growth among the poorest 40 percent of LDCs |
| D. | and MNC domination and its effects on income distribution |
| Answer» B. and the dangers of a trade deficit | |
| 14. |
Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flows from poor to rich countries by ? |
| A. | the brain drains from LDCs to DCs |
| B. | the price role of political and credit-market risk in many LDCs |
| C. | the law of increasing returns that implies that the marginal productivity of capital is higher in LDCs |
| D. | the fat that the DC capital market is perfectly competitive |
| Answer» C. the law of increasing returns that implies that the marginal productivity of capital is higher in LDCs | |
| 15. |
Bilateral aid ? |
| A. | is technical aid given by IMF |
| B. | is given directly by one country to another |
| C. | is aid with repayment in inconvertible currency |
| D. | is a loan at bankers’ standards |
| Answer» C. is aid with repayment in inconvertible currency | |
| 16. |
Barro and Lee find that ceteris paribus, IMF lending has ? |
| A. | negative effect on economic growth during the simultaneous five-year period but has a significantly positive effect on growth in the subsequent five y |
| B. | no effect on economic growth during the simultaneous five-year period but has a significantly negative effect on growth in the subsequent five years |
| C. | a significantly positive effect on growth in the subsequent five years |
| D. | an exponentially negative effect on growth ten years |
| Answer» C. a significantly positive effect on growth in the subsequent five years | |
| 17. |
An annual summary of country’s international economic and financial transactions is ? |
| A. | the capital accounts |
| B. | the international balance of payments statements |
| C. | the long-term current account |
| D. | the trade accounts |
| Answer» C. the long-term current account | |
| 18. |
Aid or official development assistance (ODA) includes ?_x005F_x000D_I- developments grants_x005F_x000D_II- loans with at least 25 percent grant element_x005F_x000D_III- military assistance_x005F_x000D_IV- technical cooperation |
| A. | I and II only |
| B. | I, II and III only |
| C. | I, II and IV only |
| D. | I, II, III and IV only |
| Answer» D. I, II, III and IV only | |