MCQOPTIONS
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MCQOPTIONS
This section includes 17 Mcqs, each offering curated multiple-choice questions to sharpen your Economics knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Worker-managed socialism helped contribute to ________ ‘s rapid economic growth from 1959 to 1979? |
| A. | Yugoslavia |
| B. | Chile |
| C. | Vietnam |
| D. | Japan |
| Answer» B. Chile | |
| 2. |
Which of the following is not a public policy to promote the private sector ? |
| A. | Investigating development potential through scientific and market research and natural resources surveys |
| B. | Providing adequate infrastructure for public and private agencies |
| C. | Creating markets, including commodity markets, security exchanges, banks credit facilities and insurance companies |
| D. | Increasing market monopolies and oligopolies to help producers |
| Answer» E. | |
| 3. |
Which of the following assumptions underlying input-output analysis raises about its validity ?_x005F_x000D_I- The technical coefficients are fixed which means so substitution between inputs occurs_x005F_x000D_II- There are no externalities so that the total effect of carrying out several activities is the sum of the separate effects_x005F_x000D_III- Each good is produced by only one industry and each industry produces only one commodity_x005F_x000D_IV- There is no technical change |
| A. | I and II only |
| B. | I, II, III only |
| C. | I, II, IV only |
| D. | I, II, III and IV |
| Answer» E. | |
| 4. |
Under Soviet-type economy-wide central planning ? |
| A. | most resource lack freedom to move to their highest value uses |
| B. | resources are free to move to their lowest cost uses |
| C. | resources owned by private entities moves to efficient use but not those owned publicly |
| D. | resources are privately owned by capitalists |
| Answer» B. resources are free to move to their lowest cost uses | |
| 5. |
The market efficiently allocates scarce resource among alternative ends such that ?_x005F_x000D_I- consumers receive goods for which they are willing to pay_x005F_x000D_II- Production resources hire out to maximize income)_x005F_x000D_III- the market determines available labor and capital_x005F_x000D_IV- the market distributes income among rich individuals |
| A. | III and IV only |
| B. | II and III only |
| C. | I, II and III only |
| D. | I, II, III and IV |
| Answer» E. | |
| 6. |
The input-output table, when divided vertically shows ? |
| A. | the inputs to each industry from other industries and sectors |
| B. | development planning and the required information on national income growth |
| C. | the planned public capital divided by feasible actual industrial projects public capital |
| D. | how the output of each industry is distributed within the sectors of the economy |
| Answer» B. development planning and the required information on national income growth | |
| 7. |
Polish economist Oskar Lange’s model of decentralized ______ combined the advantages of market allocation with more uniform income distribution by dividing the returns from social ownership of nonhuman productive resources among the whole population ? |
| A. | market socialism |
| B. | capitalism |
| C. | mixed economy |
| D. | monopoly |
| Answer» B. capitalism | |
| 8. |
Planning in many LDCs has failed because detailed programs for the public sector have not been worked out and ? |
| A. | governments depend primarily on their colonial masters |
| B. | excessive controls are used in the private sector |
| C. | the brain drains cost government substantially |
| D. | monopolies dominate in the agricultural sector |
| Answer» C. the brain drains cost government substantially | |
| 9. |
Most mixed or capitalist developing countries are limited to an indicative plan, which indicates expectations, aspirations, and intentions ? |
| A. | but falls short of authorization |
| B. | with immediate implementation |
| C. | of the central bank |
| D. | of implementation through foreign aid |
| Answer» B. with immediate implementation | |
| 10. |
Government’s use of coordinated policies to achieve national economic objectives is ? |
| A. | commanding heights |
| B. | entrepreneurial programs |
| C. | public physical policy |
| D. | development planning |
| Answer» E. | |
| 11. |
Goals are achieved through ____ such a monetary fiscal, exchange rate tariff tax subsidy, business incentive foreign investment and foreign aid? |
| A. | indicative plan |
| B. | central bank policies |
| C. | central planning |
| D. | instrument variables |
| Answer» E. | |
| 12. |
Deepak Lal argues that development economics is dominated by _______ approach that favors government intervention into LDC prices? |
| A. | dirigiste |
| B. | Keynesian |
| C. | Commanding heights |
| D. | soft budget |
| Answer» B. Keynesian | |
| 13. |
Branko Horvat’s historical review of the last two and one-half century indicates that in large part market or decentralized socialism ? |
| A. | has failed |
| B. | works well in Utopia |
| C. | is widely used in sub Saharan Africa |
| D. | is the only way to eradicate poverty? |
| Answer» B. works well in Utopia | |
| 14. |
Annual GNP growth of 6% poverty reduced by 1% point of the population Balance of payments deficit not in excess of $200 million For a planner, the above are ? |
| A. | achieved only through socialism |
| B. | target variables |
| C. | bound by soft budget |
| D. | recurrent expenditures |
| Answer» C. bound by soft budget | |
| 15. |
According to Oskar Lange’s model socialist enterprises should produce where ? |
| A. | The monopoly profit maximization rule applies |
| B. | Product price equals marginal cost |
| C. | marginal revenue equals average cost |
| D. | total revenue equals total cost |
| Answer» C. marginal revenue equals average cost | |
| 16. |
A state planning ideology arose in LDCs as a reaction to nationalist perceptions of ? |
| A. | Keeping balanced budget, a price target |
| B. | slow economic growth under colonial capitalism |
| C. | minimizing public spending in the rural areas |
| D. | western countries, nation-state ideology |
| Answer» C. minimizing public spending in the rural areas | |
| 17. |
A medium-term plan can be a(n) ________ revised at the end of each year? |
| A. | instrument variable |
| B. | seasonal expenditure |
| C. | rolling plan |
| D. | perspective plan |
| Answer» D. perspective plan | |