MCQOPTIONS
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MCQOPTIONS
This section includes 381 Mcqs, each offering curated multiple-choice questions to sharpen your General knowledge and support exam preparation. Choose a topic below to get started.
| 201. |
Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account ? |
| A. | deficit |
| B. | surplus |
| C. | revaluation |
| D. | devaluation |
| Answer» C. revaluation | |
| 202. |
Some state powers are inferred from the power specifically delegated by the Constitution to the central government These are Called ___________? |
| A. | inferred powers |
| B. | residual powers |
| C. | implied powers |
| D. | reserved powers |
| Answer» E. | |
| 203. |
Adam Smith advocated ? |
| A. | laissez faire |
| B. | - the invisible hand |
| C. | I- free trade policy |
| D. | - competitive markets |
| Answer» B. - the invisible hand | |
| 204. |
Suppose that Russia steel firms engage in dumping in the German market in terms of overall economic welfare, German welfare would _______ as the result of the dumping? |
| A. | increase |
| B. | decrease |
| C. | not change |
| D. | None of These |
| Answer» B. decrease | |
| 205. |
In order to maximize profits, a monopoly company will produce that quantity at which the: |
| A. | Marginal revenue equals average total cost |
| B. | Price equals marginal revenue |
| C. | Marginal revenue equals marginal cost |
| D. | Total revenue equals total cost |
| Answer» B. Price equals marginal revenue | |
| 206. |
If a country wants to achieve rapid rate of economic development, it must save at least: |
| A. | 25% Gross National Products each year |
| B. | 30% Gross National Products each year |
| C. | 35% Gross National Products each year |
| D. | 40% Gross National Products each year |
| Answer» B. 30% Gross National Products each year | |
| 207. |
Taxes creates a wedge between the sales price and purchase price that prevents the price system equating ____ and ______? |
| A. | marginal costs, marginal benefits |
| B. | demand, supply |
| C. | marginal cost, marginal revenue |
| D. | marginal cost, average cost |
| Answer» B. demand, supply | |
| 208. |
G.N.P. (Gross National Product) is the total value of goods and services |
| A. | Produced in a country with domestic or foreign factors |
| B. | Produced by the factors belonging to the country working in or out of the country |
| C. | Produced by the factors belonging to the country working abroad |
| D. | None of the above |
| Answer» B. Produced by the factors belonging to the country working in or out of the country | |
| 209. |
The 1993 World Bank study entitled The East Asian Miracle (1993) identifies eight high performing Asian economies Which of the following is not one of them ? |
| A. | Japan |
| B. | Four tigers |
| C. | Vietnam |
| D. | Thailand |
| Answer» D. Thailand | |
| 210. |
Societies with landed gentry and inherited titles resemble_________________? |
| A. | caste systems |
| B. | estate systems |
| C. | class systems |
| D. | status systems |
| Answer» C. class systems | |
| 211. |
Which country is the biggest producer of Uranium in the world ? |
| A. | France |
| B. | Canada |
| C. | USA |
| D. | Zaire |
| Answer» C. USA | |
| 212. |
Clientelism ? |
| A. | is also known as patrimonialism |
| B. | - is the dominant pattern in many LDCs |
| C. | I- is a personalized relationship between patrons and clients |
| D. | - commands equals wealth, status or influence, based on unconditional loyalties and involving mutual benefits |
| Answer» B. - is the dominant pattern in many LDCs | |
| 213. |
Suppose that the offshore assembly provisions (OAP) of the United States are granted to finished computers that are imported and produced domestically This policy will tend to ? |
| A. | cause foreign assemblers of computers to use more computer components that are supplied by countries other than the United States |
| B. | Increase the Price of computers to consumers in the United States |
| C. | Increase the Production of computers in the United States |
| D. | Increase the production of computer components in the United States |
| Answer» E. | |
| 214. |
Symbolic interaction ism functionalism conflict feminism exchange are_____________? |
| A. | economic theories |
| B. | issues in psychology |
| C. | theoretical models used by sociologists and anthropologists |
| D. | the vocabulary of computer science |
| Answer» D. the vocabulary of computer science | |
| 215. |
Term the average income of the people of a country during a year ? |
| A. | National income |
| B. | Domestic income |
| C. | Protection Income |
| D. | Per capita Income |
| Answer» E. | |
| 216. |
The branch of economics concerned with providing funds to individuals, business and governments is called: |
| A. | Econometrics |
| B. | Microeconomics |
| C. | Macroeconomics |
| D. | Finance |
| Answer» B. Microeconomics | |
| 217. |
Setting call objectives is done during which of the following stages of the selling process? |
| A. | Prospecting |
| B. | Preapproach |
| C. | Approach |
| D. | Handling objections |
| Answer» C. Approach | |
| 218. |
Highly-indebted poor countries (HIPCs) include________________? |
| A. | Bolivia |
| B. | - Benin |
| C. | I- Uganda |
| D. | - Tanzania |
| Answer» B. - Benin | |
| 219. |
Feudalism was undercut by? |
| A. | the migration of serfs to the town |
| B. | - factory competition with handicraft and manorial production |
| C. | I- expanded transport trade, discovery and new international markets |
| D. | - the rise of the business corporation |
| Answer» B. - factory competition with handicraft and manorial production | |
| 220. |
Sector shifts tend to raise which type of unemployment ? |
| A. | Structural Unemployment |
| B. | Unemployment due to efficiency wages |
| C. | Unemployment due to unions |
| D. | Frictional Unemployment |
| Answer» E. | |
| 221. |
Speculators in foreign exchange markets do all of the following except ? |
| A. | attempt to profit by trading on expectations about future currency prices |
| B. | bear risk as they attempt to ____ beat the market|| |
| C. | attempt to buy currency at a low price and later resell that currency at a higher price |
| D. | Simultaneously buy a currency at a low price and sell that currency at a higher price, making a riskless profit |
| Answer» E. | |
| 222. |
The Government has reduced the rate of profit on National Saving Schemes primarily for the reason of: |
| A. | Enhancing the level of saving rate |
| B. | Discouraging the blockage of money in such schemes |
| C. | To encourage the investors to invest their capital in active business ventures |
| Answer» B. Discouraging the blockage of money in such schemes | |
| 223. |
The entrepreneur can be viewed as the ? |
| A. | coordinator of other production resources |
| B. | - decision maker under uncertainty |
| C. | I- innovator |
| D. | - gap filler and input completer |
| Answer» B. - decision maker under uncertainty | |
| 224. |
Suppose that 40 percent of the voting population wish to spent Rs1,000 for artwork in City Hall, 25 percent wish to spent Rs20,000 and 35 percent wish to spend Rs 22,000 What is the median preferred outcome, the average preferred outcome and the modal preferred outcome ? |
| A. | Rs20,000, Rs20,000, Rs22,000 |
| B. | Rs1,000, Rs14,333, Rs1,000 |
| C. | Rs20,000, Rs13,100, Rs1,000 |
| D. | Rs1,000, Rs20,000, Rs22,000 |
| Answer» D. Rs1,000, Rs20,000, Rs22,000 | |
| 225. |
Suppose two economists are arguing about policies that deal with unemployment One economist says the government should fight unemployment because it is the greatest social evil The other economist response Nonsense Inflation is the greatest social evil These economists ? |
| A. | disagree because they have different values. |
| B. | none of these answers. |
| C. | disagree because they have different scientific judgments. |
| Answer» C. disagree because they have different scientific judgments. | |
| 226. |
Societies in which ascribed statuses have been prevalent include______________? |
| A. | estate systems in feudal Europe |
| B. | industrial societies like the United States |
| C. | occupationally-based caste systems as in pre-modern India |
| D. | A and C only |
| Answer» E. | |
| 227. |
Technological improvements in agriculture that shift the supply of agricultural commodities to the right tend to ? |
| A. | increase total revenue to farmers as a whole because the demand for food is elastic |
| B. | increase total revenue to farmers as whole because the demand for food is inelastic |
| C. | reduce total revenue to farmers as a whole because the demand for food is elastic |
| D. | reduce total revenue to farmers as a whole because the demand for food is inelastic |
| Answer» E. | |
| 228. |
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 ? |
| A. | the skill limit |
| B. | - the savings gap |
| C. | I- the fiscal gap |
| D. | - the foreign exchange gap |
| Answer» B. - the savings gap | |
| 229. |
The extent to which a change in the exchange rate leads to changes in import and export prices is known as the ? |
| A. | J Curve effect |
| B. | Marshall Lerner effect |
| C. | absorption effect |
| D. | pass through effect |
| Answer» E. | |
| 230. |
Social organization in the city brought ALL BUT which one of these changes ? |
| A. | The class structure became more rigid |
| B. | Families became nuclear |
| C. | Primary group ties became less important |
| D. | Formal agencies of control multiplied |
| Answer» B. Families became nuclear | |
| 231. |
Short-term loans to the public for the purchase of specific goods is called: |
| A. | Commercial Credit |
| B. | Public Credit |
| C. | Consumer Credit |
| D. | None of the above |
| Answer» B. Public Credit | |
| 232. |
Some frictional Unemployment is inevitable because ? |
| A. | of minimum wage laws |
| B. | There are changes in the demand for labour among different firms. |
| C. | Of unions |
| D. | All of these answers |
| Answer» C. Of unions | |
| 233. |
In price discrimination, which section of the market is charged the higher price? |
| A. | The section with the richest people |
| B. | The section with the oldest people |
| C. | The section with the most inelastic demand |
| D. | The section with the most elastic demand |
| Answer» B. The section with the oldest people | |
| 234. |
Termed the written statement which expresses the intention of undersigned to enter into a formal agreement ? |
| A. | Letter of intent |
| B. | Letter of Credit |
| C. | Letter of Expression |
| D. | Papers of Landing |
| Answer» B. Letter of Credit | |
| 235. |
Studies have found that__________________? |
| A. | victims of child abuse become troubled adults |
| B. | the more severe the abuse the more extreme the later psychiatric symptoms |
| C. | not all abused children go on to abuse their own children |
| D. | all of the above |
| Answer» E. | |
| 236. |
Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raises its price Rs40 per month the number of subscribers will fall to 20000 Using the midpoint method for calculating the elasticity what is the price elasticity of demand for cable TV in Small Town ? |
| A. | 1.4 |
| B. | 0.66 |
| C. | 0.75 |
| D. | 2.0 |
| Answer» B. 0.66 | |
| 237. |
The abolition of income tax would probably ______ the number of workers in employment and _______ the equilibrium rate of unemployment? |
| A. | increase reduce |
| B. | increase, increase |
| C. | reduce, increase |
| D. | reduce, reduce |
| Answer» B. increase, increase | |
| 238. |
Suppose that tomatoes from Mexico face a 20 percent tariff in the United States and a 25 percent tariff in Canada. If the United States and Canada maintain free trade between each other, the these two countries belong to a ? |
| A. | free-trade area |
| B. | customs union |
| C. | common market |
| D. | monetary union |
| Answer» B. customs union | |
| 239. |
The Balance of payment is understood as |
| A. | The balance of amount after paying debt |
| B. | The balance of income and expenditure in the annual budget |
| C. | None of the above |
| Answer» B. The balance of income and expenditure in the annual budget | |
| 240. |
During Stagflation ? |
| A. | an increase in aggregate spending will eliminate the recession |
| B. | - a decrease in aggregate spending will reduce inflation |
| C. | I- government faces contradictory goals |
| D. | - the central bank decease money supply to reduce inflation |
| Answer» B. - a decrease in aggregate spending will reduce inflation | |
| 241. |
The Human Development Report 2003, which assumes that poverty is multidimensional calculates a human poverty index based on which of the following measures of deprivation ? |
| A. | probability at birth of not surviving to age 40 |
| B. | - adult illiteracy rate |
| C. | I- negative economic growth |
| D. | - lack of a decent standard of living |
| Answer» B. - adult illiteracy rate | |
| 242. |
Aid or official development assistance (ODA) includes ? |
| A. | developments grants |
| B. | - loans with at least 25 percent grant element |
| C. | I- military assistance |
| D. | - technical cooperation |
| Answer» B. - loans with at least 25 percent grant element | |
| 243. |
Specific tariffs are collected as ? |
| A. | fixed amount of money per unit traded |
| B. | a percentage of money per unit traded |
| C. | a percentage of the quantity of imports |
| D. | All of the above |
| Answer» B. a percentage of money per unit traded | |
| 244. |
South Africa is the chief exporter of ? |
| A. | Coffee |
| B. | Copper |
| C. | Diamond |
| D. | Gold |
| Answer» E. | |
| 245. |
Suppose that requiring motorcycle riders to wear helmets reduces the probability of a motorcycle fatality from 0.3 percent to 0.2 percent over the lifetime of a motorcycle rider and that the cost of lifetime supply of helmets is Rs5000. It is efficient for the government to require riders to wear helmets if human life is valued at ? |
| A. | Rs 150 or more |
| B. | Rs 500,000 or more |
| C. | Rs50,000 or more |
| D. | Rs500 or more |
| Answer» C. Rs50,000 or more | |
| 246. |
Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? the monopolist has? |
| A. | maximized its total revenue |
| B. | set price equal to its average cost |
| C. | equated marginal revenue and marginal cost |
| D. | maximized the difference between marginal revenue and marginal cost. |
| Answer» D. maximized the difference between marginal revenue and marginal cost. | |
| 247. |
Social scientists________________? |
| A. | provide criteria for choosing a valid religion |
| B. | neither accept nor reject claims of divine revelation |
| C. | have no interest in the content of religious doctrines |
| D. | all of the above |
| Answer» C. have no interest in the content of religious doctrines | |
| 248. |
Suppose Canada and Switzerland were the only two countries in the world There exists an excess supply of Swiss francs on the foreign exchange market This suggests that ? |
| A. | the Canadian current account balance is in surplus |
| B. | the Swiss current account balance is in deficit |
| C. | the Canadian current account balance is in equilibrium |
| D. | the Swiss current account balance is in equilibrium |
| Answer» C. the Canadian current account balance is in equilibrium | |
| 249. |
The demand for labor will be more elastic if: |
| A. | There are few substitutes for labor |
| B. | There is a short time under consideration |
| C. | Labor is a large percent of the total cost of production |
| D. | The demand for the product is relatively inelastic |
| Answer» B. There is a short time under consideration | |
| 250. |
When no tariffs are imposed on exports and imports, it is called: |
| A. | Two way trade |
| B. | Exchange trade |
| C. | Free trade |
| D. | Selective trade |
| Answer» B. Exchange trade | |