MCQOPTIONS
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MCQOPTIONS
This section includes 16 Mcqs, each offering curated multiple-choice questions to sharpen your Economics Mcqs knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
____ was a strategy for industrial development popular in Latin America in the 1950s 1 1960s for promoting domestic production by erecting high protective tariffs on imports of manufactured goods ? |
| A. | export led growth |
| B. | import substitution |
| C. | dynamic hedging |
| D. | countervailing duties |
| Answer» C. dynamic hedging | |
| 2. |
Guest worker programs usually result in temporary migration of workers from ? |
| A. | impoverished countries to impoverished countries |
| B. | impoverished countries to wealthy countries |
| C. | wealthy countries to wealthy countries |
| D. | wealthy countries to impoverished countries |
| Answer» C. wealthy countries to wealthy countries | |
| 3. |
The migration of employable workers from low-paying nations to high-paying nations will ? |
| A. | decrease wage rates in the low-paying nations |
| B. | decrease productivity and real output in the world |
| C. | increase business or capitalist incomes in the high-paying nations |
| D. | increase business or capitalist incomes in the low-paying nations |
| Answer» D. increase business or capitalist incomes in the low-paying nations | |
| 4. |
International joint ventures can lead to welfare losses when the newly established firm ? |
| A. | adds to the pre-existing productive capacity |
| B. | enters markets neither parent could have entered individually |
| C. | yields cost reductions unavailable to parent firms |
| D. | gives rise to increased amounts of market power |
| Answer» E. | |
| 5. |
All of the following are potential advantages of an international joint venture except ? |
| A. | sharing research and development cost among corporations |
| B. | forestalling protectionism against imports |
| C. | establishing work rules promoting higher labor productivity |
| D. | operating at diseconomy-of-scale output levels |
| Answer» E. | |
| 6. |
The migrations of electricians from low-paying nations to high-paying nations is most likely to be challenged by ? |
| A. | electrician unions in the high-paying nations |
| B. | electrician unions in the low paying nations |
| C. | electrician employers in the high-paying nations |
| D. | electricians who stay in the low paying nations |
| Answer» B. electrician unions in the low paying nations | |
| 7. |
Accusations of American labor unions against U.S multinational firms include all of the following except ? |
| A. | enjoy unfair advantage in taxation |
| B. | export jobs by shifting technology overseas |
| C. | export jobs by shifting investment overseas |
| D. | operating at output levels where scale economies occur |
| Answer» E. | |
| 8. |
Multinational corporations face problems since they ? |
| A. | cannot benefit from the advantage of comparative advantage |
| B. | may raise political problems in countries where their subsidiaries operate |
| C. | can only invest at home but not overseas |
| D. | can only invest overseas but not at home |
| Answer» C. can only invest at home but not overseas | |
| 9. |
________ refers to the price charged for products sold to a subsidiary to a multinational corporation b another subsidiary in another country? |
| A. | marginal cost pricing |
| B. | full cost pricing |
| C. | price discrimination |
| D. | transfer pricing |
| Answer» E. | |
| 10. |
Multinational corporations ? |
| A. | always produce primary goods |
| B. | always produce manufactured goods |
| C. | produce primary goods or manufactured goods |
| D. | None of the above |
| Answer» D. None of the above | |
| 11. |
Firms undertake multinational operations in order to ? |
| A. | hire low-income workers |
| B. | manufacture in nations they have difficult exporting to |
| C. | obtain necessary factor inputs |
| D. | All of the above |
| Answer» E. | |
| 12. |
The market power effect of an international joint venture can lead to welfare losses for the domestic economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting welfare gains for the overall economy ? |
| A. | R&D generating welfare improved technology |
| B. | development of more productive machinery |
| C. | new work rules promoting workers efficiency |
| D. | lower wages extracted from workers |
| Answer» E. | |
| 13. |
Which business device involves the creation of a new business by two or more companies often for a limited period of time ? |
| A. | multinational corporation |
| B. | international joint venture |
| C. | horizontal merger |
| D. | vertical merger |
| Answer» C. horizontal merger | |
| 14. |
The migration of employable workers from low-paying nations to high-paying nations tends to decrease ? |
| A. | total wage income in the world |
| B. | wage disparities |
| C. | business or capitalist income in the world |
| D. | the productivity of labor |
| Answer» C. business or capitalist income in the world | |
| 15. |
American labor unions have maintained that U.S multinational corporations have been ? |
| A. | exporting American jobs by investing overseas |
| B. | exporting American jobs by keeping investment in the U.S |
| C. | importing cheap foreign workers by shifting U.S investment overseas |
| D. | importing cheap foreign workers by keeping U.S investment at home |
| Answer» B. exporting American jobs by keeping investment in the U.S | |
| 16. |
Which of the following is not an example of foreign direct investment ? |
| A. | the construction of a new auto assembly plant overseas |
| B. | the acquisition of an existing steel mill overseas |
| C. | the purchase of bonds or stock issued by a textile company overseas |
| D. | the creation of a wholly owned business firm overseas |
| Answer» D. the creation of a wholly owned business firm overseas | |