MCQOPTIONS
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MCQOPTIONS
This section includes 24 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 one of the following countries is not a high-income country ? |
| A. | Germany |
| B. | United Kingdom |
| C. | Canada |
| D. | Mexico |
| Answer» E. | |
| 2. |
Which of the following statement is true about low-income countries ? |
| A. | less than 10% of the labor force is in agriculture |
| B. | the average agriculture family produces surplus large enough only to supply small non-agriculture population |
| C. | One-third of the labor force produce food |
| D. | share of labor force is about 30% |
| Answer» C. One-third of the labor force produce food | |
| 3. |
Which of the following is not a requirement for economic development ? |
| A. | a temperate climate |
| B. | natural resources |
| C. | an adequate capital bases |
| D. | technological advance |
| Answer» B. natural resources | |
| 4. |
What is the ratio of population density of developing countries to the population of developed countries ? |
| A. | 10 |
| B. | 2 |
| C. | no more than 1 |
| D. | 20 |
| Answer» C. no more than 1 | |
| 5. |
What is gross domestic product (GDP) ? |
| A. | income earned through foreign exchange |
| B. | the number of dollars earned in industry |
| C. | income earned within a country’s boundaries |
| D. | goods received from the nation’s residents |
| Answer» D. goods received from the nation’s residents | |
| 6. |
Two or more nuclear families of parent(s) and children is known as ? |
| A. | dual family |
| B. | institutional family |
| C. | extended family |
| D. | two-tier family tree |
| Answer» D. two-tier family tree | |
| 7. |
The low-income economies generally have the following except ? |
| A. | deficient infrastructures |
| B. | low life expectancies |
| C. | low savings |
| D. | a per capital GNP of more than $900 |
| Answer» E. | |
| 8. |
The informal sector includes ?_x005F_x000D_I-artisans, cottage industrialists, petty traders, teashop proprietors_x005F_x000D_II- garbage pickers jitney unauthorized taxis repair persons_x005F_x000D_III- the self employed_x005F_x000D_IV- activities with little capital skill and entry barriers |
| A. | I and II only |
| B. | III and IV only |
| C. | IV only |
| D. | I, II, III and IV |
| Answer» E. | |
| 9. |
The following statements are true about informal sector except ? |
| A. | Uses no mechanical power |
| B. | May be enterprises with less than 10 workers |
| C. | Production is capital intensive |
| D. | Uses family workers |
| Answer» D. Uses family workers | |
| 10. |
Peasants are ? |
| A. | rural politicians |
| B. | rural cultivators |
| C. | rural industrialist |
| D. | rural, religious group |
| Answer» C. rural industrialist | |
| 11. |
Industrialization? |
| A. | causes development |
| B. | is positively related to development |
| C. | id inversely related to development |
| D. | inhibits development |
| Answer» C. id inversely related to development | |
| 12. |
Increasing in the real GNP per capita occur when ? |
| A. | government programs direct resources away from investment goods to consumer goods. |
| B. | tariffs and quotas prevent countries from trading and thus prevent dollars from leaving each country |
| C. | the rate of growth in real GNP is greater than the rate of growth in the population |
| D. | the level of consumption expenditures rises relative to the level of savings |
| Answer» D. the level of consumption expenditures rises relative to the level of savings | |
| 13. |
Increases in real GNP per capita occur when ? |
| A. | government programs direct resources away from investment goods to consumer goods. |
| B. | tariffs and quotas prevent dollars from leaving the country |
| C. | the rate of growth of real GNP is greater than the rate of growth of population |
| D. | the level of consumption expenditures rises relative to the level of saving |
| Answer» D. the level of consumption expenditures rises relative to the level of saving | |
| 14. |
In low-income countries the average agricultural family produces a surplus ? |
| A. | enough to supply only a small nonagricultural population |
| B. | of zero |
| C. | large enough of feed five other families |
| D. | large enough to feed 25 other families |
| Answer» B. of zero | |
| 15. |
Export primary commodity concentration ratios are ? |
| A. | commodity exports as a percentage of GDP per capita of exporting country divided by importing country |
| B. | export earnings as a ratio of population |
| C. | total merchandise export divided by Gross National Income |
| D. | food, raw materials minerals and organic oils and fat as a percentage of total merchandise exports |
| Answer» B. export earnings as a ratio of population | |
| 16. |
Economic rent ? |
| A. | is productive activity to obtain private benefit from public action and resources |
| B. | are the payments above the minimum essential to attract the resources to the market? |
| C. | is the wage used to pay unskilled workers? |
| D. | does not include monopoly profits |
| Answer» C. is the wage used to pay unskilled workers? | |
| 17. |
Dual economies are countries ? |
| A. | with double capital and labor/ |
| B. | with a modern manufacturing sector as well as traditional agriculture sector |
| C. | that specialize in labor intensive products more than capital intensive products |
| D. | with foreign owned and domestically owned capital |
| Answer» C. that specialize in labor intensive products more than capital intensive products | |
| 18. |
Clientelism ?_x005F_x000D_I- is also known as patrimonialism_x005F_x000D_II- is the dominant pattern in many LDCs_x005F_x000D_III- is a personalized relationship between patrons and clients_x005F_x000D_IV- commands equals wealth, status or influence, based on unconditional loyalties and involving mutual benefits |
| A. | I and II only |
| B. | II and III only |
| C. | I, II and III only |
| D. | IV only |
| Answer» D. IV only | |
| 19. |
Assume that the real income of developing Island increases from $120,000 to $160,000 from 2005 to 2006 while its population expands from 1000 to 1100 during the same period Real income per capita has increased by about ? |
| A. | $145 |
| B. | $40,000 |
| C. | $25 |
| D. | $100 |
| Answer» D. $100 | |
| 20. |
As economic development proceeds income inequality tends to follow a(n) _____ curve? |
| A. | convex |
| B. | inverted U shaped |
| C. | L-shaped |
| D. | S-Shaped |
| Answer» C. L-shaped | |
| 21. |
According to Lewis’s model the dual economy grows only when ? |
| A. | the modern sector increases its output share relative to the traditional sector |
| B. | agricultural sector uses modern equipment |
| C. | agricultural sector hires labor economically |
| D. | modern manufacturing sector is labor intensive |
| Answer» B. agricultural sector uses modern equipment | |
| 22. |
A dual economy is distinguished from other economies by having ? |
| A. | an industrial sector and a manufacturing sector |
| B. | a traditional agricultural sector and a modern industrial sector |
| C. | state owner ship of the means of production |
| D. | an industrial sector that concentrates on manufacturing and construction |
| Answer» C. state owner ship of the means of production | |
| 23. |
A country’s capital stock is the ? |
| A. | approximated investment minus actual investment |
| B. | inflow of investment from abroad |
| C. | sum of previous gross investment minus depreciation |
| D. | difference between GDP and capital consumption |
| Answer» D. difference between GDP and capital consumption | |
| 24. |
A country’s export commodity concentration ratio is the ? |
| A. | average annual investment made in production of exported commodities |
| B. | proportion of the primary export commodity in total exports |
| C. | ratio of four leading commodities to total merchandise exports |
| D. | total annual investment made in production of exported commodities |
| Answer» D. total annual investment made in production of exported commodities | |