MCQOPTIONS
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MCQOPTIONS
This section includes 35 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 LDCs ? |
| A. | Most LDCs have less than 1/10 the per capita GNP of the U.S |
| B. | A greater share of GNP would have to be devoted to education to attain the same primary enrollment rates as in the U.S |
| C. | Setting up western labor standard and minimum wages in labor-abundant LDCs is sensible |
| D. | Most LDCs have a greater shortage of qualified teachers than the U.S does |
| Answer» D. Most LDCs have a greater shortage of qualified teachers than the U.S does | |
| 2. |
Which of the following is not one of the Newly Industrialized Countries (NICs) ? |
| A. | Japan |
| B. | South Korea |
| C. | Taiwan |
| D. | Singapore |
| Answer» B. South Korea | |
| 3. |
Which of the following is not a problem in comparing developed and developing countries GNP ? |
| A. | GNP is understated for developed countries, since a number of items included in their national incomes are intermediate goods |
| B. | The economic contribution of a housewife is a peasant family may not be measured is GNP is poor country |
| C. | GNP in understated for developing countries since many of their labor intensive good have no impact on exchange rate since they are not traded |
| D. | GNP is overstated for for countries where the price of foreign exchange is less than market clearing price |
| Answer» B. The economic contribution of a housewife is a peasant family may not be measured is GNP is poor country | |
| 4. |
Which of the following countries is not a low income country ? |
| A. | Indonesia |
| B. | India |
| C. | Malaysia |
| D. | Nigeria |
| Answer» D. Nigeria | |
| 5. |
Which of the following countries is not a low-income country ? |
| A. | Ethiopia |
| B. | Rwanda |
| C. | Somalia |
| D. | Singapore |
| Answer» E. | |
| 6. |
Which of the following are low income countries income country ? |
| A. | Canada |
| B. | United States |
| C. | Mexico |
| D. | Australia |
| Answer» D. Australia | |
| 7. |
Tuvalu is composed of 9 coral atolls along a 360-mile chain in Polynesia They gained independence in 1978 The former Ellice Island are home to 9,700 people if GNP of Tuvalu is $300 million in 2005 GNP per capital is ? |
| A. | 9700 (1978 / 2005) |
| B. | 300 / 360 |
| C. | 300 000 000 / 9700 |
| D. | 32.333 |
| Answer» D. 32.333 | |
| 8. |
The World Bank’s GNP per capita classification for low income middle income and high income countries respectively is ? |
| A. | less than $900, $900-$9000 and more than $9000 |
| B. | less than $5000, $5000-$15000 and more than $15000 |
| C. | less than $100, $100-$1000 and more than $1000 |
| D. | less than $5000, $5000-$150000 and more than $150000 |
| Answer» B. less than $5000, $5000-$15000 and more than $15000 | |
| 9. |
The University of Pennsylvania researchers Summers and Heston compute the price level of GDP as the ratio of purchasing power parity (PPP) exchange rate to the actual exchange rate where ? |
| A. | both exchange rates are measured s the domestic currency price of the US-dollar |
| B. | both exchange rates are not converted into international dollars |
| C. | both exchange rate are pegged |
| D. | both exchange rate are converted into Big Mac PPP formula |
| Answer» B. both exchange rates are not converted into international dollars | |
| 10. |
The three measure of welfare indicators above comprise the ? |
| A. | Purchasing Power Parity |
| B. | Physical Quality of Life Index |
| C. | Human Development Index |
| D. | The Laspeyres index |
| Answer» C. Human Development Index | |
| 11. |
The Physical Quality of Life Index (PQLI) combines three indicators They are ? |
| A. | infant mortality life expectancy and adult literacy rate |
| B. | crime rate clean environment and quality of housing |
| C. | air pollution rate, Water pollution rate and sanitation |
| D. | health education and environment |
| Answer» B. crime rate clean environment and quality of housing | |
| 12. |
The Paasche index uses _________ weights? |
| A. | current-year |
| B. | base-year |
| C. | fisher-ideal index |
| D. | Purchasing Power Parity (PPP) |
| Answer» B. base-year | |
| 13. |
The Human Development Index (HDI) summarizes a great deal of social performances in a single composite index combining ? |
| A. | disparity reduction rate, human resource development rate and the composite index |
| B. | longevity, education and living standard |
| C. | minimum schooling, adult literacy and tertiary educational attainment |
| D. | human resource training development and R&D |
| Answer» C. minimum schooling, adult literacy and tertiary educational attainment | |
| 14. |
The formula to calculate Passche price index is (o is the base year and n is the given year) ? |
| A. | P = ΣPnqn/Σpoqn |
| B. | P = ΣPoqo/Σpnqn |
| C. | P = ΣPnqo/Σpoqo |
| D. | P = ΣPnqn/Σpoqo |
| Answer» B. P = ΣPoqo/Σpnqn | |
| 15. |
The formula to calculate economic growth from 2001 to 2002 is given by ? |
| A. | [(GDP2002 + GDP2001)/GDP2001]100 |
| B. | [(GDP2002 – GDP2001) GDP2001]100 |
| C. | [(GDP2002 – GDP2001)/GDP2001]100 |
| D. | [(GDP2001 – GDP2002]100 |
| Answer» D. [(GDP2001 – GDP2002]100 | |
| 16. |
The formula for the Laspeyres price index is (o is the base year and n is the given year) ? |
| A. | P = ∑Poqo/∑poqo |
| B. | P = ∑Poqo/∑pnqn |
| C. | P = ∑Pnqo/∑poqo |
| D. | P = ∑Poqn/∑poqo |
| Answer» D. P = ∑Poqn/∑poqo | |
| 17. |
PPP is ? |
| A. | a theory that tells us that exchanged rates between currencies are in equilibrium when their purchasing power is the same in both countries |
| B. | GDP divided by exchange rate |
| C. | a measure of income inequality |
| D. | a measure of infant mortality in developing countries |
| Answer» B. GDP divided by exchange rate | |
| 18. |
OPEC is the ? |
| A. | Organization of Petroleum Exporting Country |
| B. | Organization of Pre-European Commission |
| C. | Oil Producing Economies Caucus |
| D. | Organization of Problematic Economies Committee |
| Answer» B. Organization of Pre-European Commission | |
| 19. |
One classification of development levels used by the World Bank divides countries into three group on the basis of GNP per capita They are ? |
| A. | NIC, OPEC and G7 |
| B. | Low income , middle income and high income |
| C. | Southeast Northeast and Southwest |
| D. | Asia, America and Europe |
| Answer» C. Southeast Northeast and Southwest | |
| 20. |
Longevity is proxy for ________ in the Human Development Index? |
| A. | health and nutrition |
| B. | living standard |
| C. | infant mortality |
| D. | Purchasing Power Parity |
| Answer» B. living standard | |
| 21. |
Lespeyres type indexes use weights from_____________? |
| A. | current period |
| B. | base-period |
| C. | forecasting |
| D. | future year |
| Answer» E. | |
| 22. |
Infant mortality ? |
| A. | is defined as the annual number of deaths of infant under 1 year old per 1,000 live births |
| B. | reflects the availability of primary education the rights of employments and social security |
| C. | is life expectancy up to age 3 |
| D. | reflects the availability of hospitals and childcare facilities and the parents wealth |
| Answer» B. reflects the availability of primary education the rights of employments and social security | |
| 23. |
Imitating labor standards from rich countries in LDCs may increase ? |
| A. | equality |
| B. | poverty |
| C. | employment |
| D. | human development |
| Answer» C. employment | |
| 24. |
IF GNP per capita at constant prices for Liechtenstein a microstate of 29,000 people located on the Rhine River between Switzerland and Austri is US$555 and US$560 in 2011 and 2012 respectively, the real economic growth from 2011 to 2012 is ? |
| A. | 5% |
| B. | 0.901% |
| C. | 0.090% |
| D. | 0.991% |
| Answer» C. 0.090% | |
| 25. |
If GNP per capita at constant prices for Ghana is US$360 and US$364 in 1996 and 1997 respectively, The real economic growth from 1996 to 1997 is ? |
| A. | 4% |
| B. | 1.11% |
| C. | 0.011% |
| D. | 11% |
| Answer» C. 0.011% | |
| 26. |
If GNP for Vatican City the smallest country in the world is 200 million euros in year 2011 and its population is 890 GNP per capita is_____________? |
| A. | 2000 – 890 |
| B. | 200/890 |
| C. | 200,000,000/890 |
| D. | 200 |
| Answer» D. 200 | |
| 27. |
If GDP for Palau a small country near southeast of the Philippines is $130 million in 2012 and its population is 20,000 GDP per capita is ? |
| A. | 6500 |
| B. | 130 |
| C. | 0.0065 |
| D. | 650 |
| Answer» B. 130 | |
| 28. |
IF GDP for Maldivies is $435 million in 2012 and the GDP per capita is $1576.087 the population of the country must be ? |
| A. | 276,000 |
| B. | 1576,086 |
| C. | 0.276 |
| D. | 3.623 |
| Answer» B. 1576,086 | |
| 29. |
If GDP for Barbados is $260 million in 2011 and its population is 260,000 GDP per capita is ? |
| A. | 1000 |
| B. | 260 |
| C. | 0.001 |
| D. | 259740 |
| Answer» B. 260 | |
| 30. |
Economic growth from current year (c) to previous year (p) is given by ? |
| A. | [(GDPc – GDPp)/ DGPp]100 |
| B. | [(GDPc – GDPp) DGPp]100 |
| C. | GNPc – DGPp100) |
| D. | [GDPp – GDPc]100 |
| Answer» B. [(GDPc – GDPp) DGPp]100 | |
| 31. |
Economic development refers to ? |
| A. | economic growth |
| B. | economic growth plus changes in (c) output distribution and economic structure |
| C. | improvement in the well-being of the urban population |
| D. | sustainable increase in Gross National Product |
| Answer» C. improvement in the well-being of the urban population | |
| 32. |
All of the following are low income countries except ? |
| A. | United Arab Emirates |
| B. | Armenia |
| C. | Sudan |
| D. | Bangladesh |
| Answer» B. Armenia | |
| 33. |
All of the following are high income countries except ? |
| A. | the United Kingdom |
| B. | Singapore |
| C. | Japan |
| D. | Hungary |
| Answer» E. | |
| 34. |
According to the next basic needs include ? |
| A. | food, clothing and housing |
| B. | health, education and quality housing |
| C. | adequate nutrition, primary education health sanitation water supply and housing |
| D. | longevity and living standards |
| Answer» D. longevity and living standards | |
| 35. |
According to chapter 2 in the text which of the following is true ? |
| A. | The boundary between rich and poor countries has become clearer in 1990s |
| B. | The fastest growing countries must be the ones with the highest per capita GNP |
| C. | A few poor countries like South Korea and Malaysia in the 1950s grew much more rapidly than some higher-income countries like Uruguay and New Zealand |
| D. | Today all high and Upper-middle income countries are Western. |
| Answer» D. Today all high and Upper-middle income countries are Western. | |