MCQOPTIONS
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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 is not TRUE about unemployed in LDCs ? |
| A. | The unemployment rate for youths is twice that of people over 24 |
| B. | Unemployment in rural areas is twice that of urban areas |
| C. | World-wide there are fewer unemployed females than males, but the rate is higher for women |
| D. | The unemployed are relatively well educated |
| Answer» D. The unemployed are relatively well educated | |
| 2. |
Which of the following is not TRUE about rural urban migration ? |
| A. | Migration to the cities is a larger contributor than natural population growth to urban labor growth is sub Saharan Africa |
| B. | In Latin America natural population increase is the major source of urban growth |
| C. | From 1975 to 2000 the number of cities in LDC with populations over 1 million increased from 20 to 50 |
| D. | The urban share of total LDC population grew from 27 percent in 1975 and 35 percent in 1992 to 40 percent in 2003 |
| Answer» C. From 1975 to 2000 the number of cities in LDC with populations over 1 million increased from 20 to 50 | |
| 3. |
Which of the following is not capita good ? |
| A. | plant and equipment |
| B. | buildings |
| C. | inventories |
| D. | consumers goods |
| Answer» E. | |
| 4. |
The unemployment rate is the ? |
| A. | employed plus unemployed divided by labor force |
| B. | total employment divided by population |
| C. | labor force divided by population |
| D. | unemployed divided by employed |
| Answer» B. total employment divided by population | |
| 5. |
The theoretical basis for zero marginal productivity of labor was the concept of ? |
| A. | marginal rate of substitution |
| B. | labor force literacy |
| C. | substitution of leisure and work among labor |
| D. | limited technical sustainability of factors |
| Answer» E. | |
| 6. |
The simplest explanation based on Lewis’s model for rural-urban migration is ? |
| A. | That people migrate when urban wages exceed rural wages |
| B. | a higher expected income in urban areas |
| C. | better infrastructure in urban areas |
| D. | the availability of labor-intensive jobs in urban areas |
| Answer» C. better infrastructure in urban areas | |
| 7. |
The openly unemployed in LDCs are usually from all of the following except ? |
| A. | persons 15 to 24 years old |
| B. | the educated |
| C. | residents of urban areas |
| D. | from the poorest 1/5 of the population |
| Answer» E. | |
| 8. |
The Keynesian remedy for unemployment is to ? |
| A. | decrease aggregate demand |
| B. | reduce tax rates or lower interest rates |
| C. | decrease government spending |
| D. | decrease private consumption and investment |
| Answer» E. | |
| 9. |
The invisibly underemployed ? |
| A. | are workers who are compelled to work short hours |
| B. | result from an inadequate use of workers capacities |
| C. | are part-time workers who voluntarily work short hours |
| D. | None of the above is correct |
| Answer» C. are part-time workers who voluntarily work short hours | |
| 10. |
Policies to reduce factor price distortion include?_x005F_x000D_I- Encouraging small-scale industry_x005F_x000D_II- Decreasing subsidies to capital investors_x005F_x000D_III- Reducing social security programs and payroll taxation_x005F_x000D_IV- Setting market-clearing exchange rates |
| A. | I and II only |
| B. | II and III only |
| C. | I, II and III only |
| D. | I, II, III and IV |
| Answer» E. | |
| 11. |
Labor skills are a major component of ? |
| A. | fertility |
| B. | population quality |
| C. | mortality |
| D. | morbidity |
| Answer» C. mortality | |
| 12. |
In a production function Y = F(L, K,N,E,T) Y is ? |
| A. | national product |
| B. | capital |
| C. | natural resources |
| D. | prevailing technology |
| Answer» B. capital | |
| 13. |
Entrepreneurship is the ? |
| A. | technique to manage raw materials efficiently |
| B. | residual of a production function |
| C. | resource coordinating other productive resources |
| D. | blueprint on how to manage the labor force |
| Answer» D. blueprint on how to manage the labor force | |
| 14. |
During the Great Depression workers in DCs who took inferior jobs as a result of being laid off were known as ? |
| A. | disguised unemployed |
| B. | cyclical unemployed |
| C. | seasonally unemployed |
| D. | voluntarily unemployed |
| Answer» B. cyclical unemployed | |
| 15. |
Disguised unemployed is? |
| A. | when marginal revenue productivity of labor is zero |
| B. | the same as seasonal unemployment of LDC agricultural |
| C. | the rigid factor proportions in LDC agriculture and industry |
| D. | due to capital formation and the level of technology remaining constant. |
| Answer» B. the same as seasonal unemployment of LDC agricultural | |
| 16. |
Based on Nafziger and Auvinen’s study high unemployment rates ?_x005F_x000D_I- represent a vast underutilization of human resources_x005F_x000D_II- are potential source of social unrest and political discontent_x005F_x000D_III- are uncomerated with poverty and inequality in LCDs_x005F_x000D_IV- are associated with middle age rural uneducated males |
| A. | I and II only |
| B. | III and IV only |
| C. | I, II and III only |
| D. | I, II and IV only |
| Answer» B. III and IV only | |
| 17. |
According to Harris and Todaro, creating urban jobs by expanding industrial output ? |
| A. | is insufficient for solving the urban unemployment problem |
| B. | will generate capital-intensive technologies |
| C. | will generate more government revenue through urban wages |
| D. | induces government to increase minimum wages |
| Answer» C. will generate more government revenue through urban wages | |
| 18. |
A production function ? |
| A. | shows the dependency output of the working population |
| B. | depicts the relationship between input and output |
| C. | states the relationship between products and income distribution |
| D. | is a function of natural resources in a country |
| Answer» C. states the relationship between products and income distribution | |