MCQOPTIONS

Explore topic-wise MCQs in Economics.

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.	Which of the following statement is NOT true about state owned enterprises (SOEs) ?
A.	SOEs perform better with competition
B.	Successful performing SOEs in Japan, Singapore and Sweden have greater managerial autonomy and accountability than other SOEs
C.	SOEs in South Korea and Sweden generally achieve inferior economic results to those in Ghana
D.	Financial autonomy is a major factor contributing to SOEs managerial effectiveness
Answer» D. Financial autonomy is a major factor contributing to SOEs managerial effectiveness

2.	Which of the following may constitute the International Monetary Fund’s conditionality for borrowing?_x005F_x000D_I. government reducing budget deficts_x005F_x000D_II. limiting credit creation and liberalizing trade_x005F_x000D_III. achieving market-clearing price_x005F_x000D_IV. restraining public sector employment and wage rates
A.	I and II only
B.	III and IV only
C.	I, II , III and IV
D.	None of these
Answer» D. None of these

3.	Which of the following is not a quasi-public good ?
A.	national defense
B.	an automobile
C.	libraries
D.	fire protection
Answer» C. libraries

4.	When the world Bank or IMF requires improved external balance in the short run the agency may condition its loan on expenditure switching that is ?
A.	switching spending from domestic to foreign sources
B.	devaluing local currencies
C.	increase trade restrictions by imposing quota
D.	increase government spending
Answer» C. increase trade restrictions by imposing quota

5.	The industrial concentration ratio is the proportion of an industry’s output ?
A.	produced by the three largest firms in the industry
B.	produced in cement, machine tools and steel industries
C.	and labor intensities relative to labor productivity
D.	as a percentage of production and marketing
Answer» B. produced in cement, machine tools and steel industries

6.	S = Savings, I = domestic investment, X = exports of goods and services, and M = imports of goods and services Which of the following is true ?
A.	S – I = X = M
B.	S + I = X + M
C.	S = I – (X+M)
D.	S-I = X/M
Answer» B. S + I = X + M

7.	Privatization refers to a range of policies including ?_x005F_x000D_I. changing part of a public enterpris’s ownership to the private sector_x005F_x000D_II. Liberalization of entry into activities previously restricted to the public sector_x005F_x000D_III. two infant industries merging into a monopoly_x005F_x000D_IV. franchising or contracting public services or leasing public assets to the Private sector
A.	III only
B.	IV only
C.	I, II and IV only
D.	None of these
Answer» D. None of these

8.	Pathologies endemic to the Soviet bureaucracy included secrecy formalism cumbersome procedures rigidity and the tendency to concentrate on control rather than performance The party controlled The state by using the ____ the power to recommend and approve managers in administration and enterprises, of appointments and promotions to control access to government positions ?
A.	Gosplan
B.	Gosagroprom
C.	nomenklatura system
D.	Parastatals
Answer» D. Parastatals

9.	Internal balance refers to ?
A.	full employment and price stability
B.	exports minus imports
C.	monetary policy offsetting fiscal policy
D.	exports equal to imports
Answer» B. exports minus imports

10.	In 1979-80 China first created _____ for foreigners to set up enterprises hire labor and import duty-free goods for processing and re-exporting ?
A.	special economic zones
B.	liberalized trade monopoly zones
C.	Economic Union zones
D.	Communist free trade areas
Answer» B. liberalized trade monopoly zones

11.	Countries with chronic balance of payments deficits eventually need to borrow abroad often from the ________ as the lender of last resort?
A.	U.S
B.	OECD
C.	IMF
D.	OPEC
Answer» D. OPEC

12.	Countries such as ________ that failed to adjust to a persistent external disequilibrium were more vulnerable to poverty displacement and even war ?
A.	Japan and Korea
B.	Brazil and Argentina
C.	Algeria and Yugoslavia
D.	Singapore and Malaysia
Answer» D. Singapore and Malaysia

13.	Countries facing a persistent external deficit can ?_x005F_x000D_I. borrow overseas_x005F_x000D_II. increase trade restrictions and exchange controls_x005F_x000D_III. undertake expansionary monetary and fiscal policies_x005F_x000D_IV. Undertake expenditure-reducing policies
A.	I and II only
B.	III and IV only
C.	I, II and III only
D.	I, II and IV only
Answer» E.

14.	Before the 1978 reforms China had a(n) ?
A.	agricultural bank only
B.	urban credit cooperatives
C.	mono bank system
D.	housing savings banks
Answer» D. housing savings banks

15.	According to the Brandt report the IMF’s insistence on drastic measures in short time periods ?_x005F_x000D_I- contributes to low-income countries recovery quickly_x005F_x000D_II- reduces basis-needs attainment_x005F_x000D_III- may lead to IMF riots_x005F_x000D_IV- may lead to the downfall of governments
A.	I only
B.	II only
C.	I and II only
D.	I, III and IV only
Answer» E.

16.	A development bank based in London, which loans funds to governments of Eastern Europe and the former Soviet Union is the ?
A.	Transitional Monetary Fund
B.	World Bank
C.	European Bank for Reconstruction and Development
D.	OECD
Answer» D. OECD

17.	A critic of “Shock therapy” to transition economies. Vladamir Popov, contends that shock therapists put a heavy emphasis on ?
A.	introducing the reform package at once to ensure that it became too late and costly to reverse the reforms
B.	agricultural reform rather than industrial reforms to overcome food insecurity
C.	the creation of a small-scale private sector ans small independent banks
D.	attempts to gradually remake institutions
Answer» B. agricultural reform rather than industrial reforms to overcome food insecurity