MCQOPTIONS
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MCQOPTIONS
This section includes 19 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. |
Which of the following may constitute the International Monetary Fund’s conditionality for borrowing? I. government reducing budget deficts II. limiting credit creation and liberalizing trade III. achieving market-clearing price 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 | |
| 2. |
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 | |
| 3. |
Privatization refers to a range of policies including ? I. changing part of a public enterpris’s ownership to the private sector II. Liberalization of entry into activities previously restricted to the public sector III. two infant industries merging into a monopoly 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 | |
| 4. |
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 | |
| 5. |
State-owned enterprises (SOEs) are also called ? |
| A. | centralized firms |
| B. | government oligopolies |
| C. | market economies |
| D. | public enterprises |
| Answer» E. | |
| 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. |
Structural economists from the United Nations Economic Commission for Latin America (ECLA) emphasized ? |
| A. | contractionary monetary and fiscal policies |
| B. | currency devaluation |
| C. | long-run institutional and structural economic change |
| D. | short term-adjustment with a human face |
| Answer» D. short term-adjustment with a human face | |
| 8. |
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 | |
| 9. |
Countries facing a persistent external deficit can ? I. borrow overseas II. increase trade restrictions and exchange controls III. undertake expansionary monetary and fiscal policies 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. | |
| 10. |
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 | |
| 11. |
Which of the following is not a quasi-public good ? |
| A. | national defense |
| B. | an automobile |
| C. | libraries |
| D. | fire protection |
| Answer» C. libraries | |
| 12. |
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 | |
| 13. |
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 | |
| 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 ? I- contributes to low-income countries recovery quickly II- reduces basis-needs attainment III- may lead to IMF riots 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. |
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 | |
| 17. |
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 | |
| 18. |
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 | |
| 19. |
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 | |