MCQOPTIONS
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MCQOPTIONS
This section includes 22 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 was not a classical economist ? |
| A. | Adam Smith |
| B. | Thomas R. Malthus |
| C. | John Stuart Mill |
| D. | John Maynard Keynes |
| Answer» E. | |
| 2. |
What is Baran’s explanation for underdevelopment in Asia, Africa, and Latin America ? |
| A. | monopolistic business from abroad |
| B. | reactionary ruling coalitions |
| C. | weak domestic middle class |
| D. | All of the above |
| Answer» E. | |
| 3. |
The Vicious circle theory states that ? |
| A. | growing government assistance create addiction to welfare programs |
| B. | low income levels create pressure for money creation |
| C. | low income levels create pressure for cheap imports |
| D. | low per capita incomes creates low savings that keep incomes low |
| Answer» E. | |
| 4. |
The Vicious circle theory indicates that ? |
| A. | a country is poor because it has lower productivity but high savings |
| B. | as countries grow richer they save less |
| C. | poverty perpetuates itself in mutually reinforcing circles on supply and demand sides |
| D. | market size is large in LDCs |
| Answer» D. market size is large in LDCs | |
| 5. |
The Ultimate effect of the invisible hand of Adam Smith is that in a competitive economy everyone ? |
| A. | benefits if each acts in his/her own interest |
| B. | will increase their profits in a free market |
| C. | should act to maximize economic growth |
| D. | should act to promote the public interest |
| Answer» B. will increase their profits in a free market | |
| 6. |
The synchronized application of capital to a wide range of different industries is called __________ by its advocates? |
| A. | balanced growth |
| B. | capitalization |
| C. | elasticity of capital |
| D. | indivisibilities |
| Answer» B. capitalization | |
| 7. |
The Lawis model explains how growth gets started in a less developed economy ? |
| A. | with an average product of labor in agriculture that is negative |
| B. | with a downward-sloping supply curve of labor |
| C. | with a marginal productivity of labor zero or negligible in industry |
| D. | with a traditional agricultural sector and an industrial capitalist sector |
| Answer» E. | |
| 8. |
The Harrod Domar growth model suggests that growth is ? |
| A. | directly related to savings and inversely related to the capital/output ratio |
| B. | directly related to the capital/output ratio and inversely related to savings |
| C. | indirectly related to savings and the capital/output ratio |
| D. | directly related to savings and the capital/output ratio |
| Answer» B. directly related to the capital/output ratio and inversely related to savings | |
| 9. |
The essential difference between capitalism and socialism is that ? |
| A. | capitalism exploits the worker and socialism exploits the property owner |
| B. | capitalism relies on the market to make economic decisions and socialism uses central planning |
| C. | capitalism grows through rent seeking and socialism grows through government direction |
| D. | capitalism relies on consumer satisfaction to dictate choices and socialism relies on producer satisfaction |
| Answer» C. capitalism grows through rent seeking and socialism grows through government direction | |
| 10. |
Rostow’s economics stages are ? |
| A. | The preconditions for takeoff, the takeoff, the drive to maturity and the age of creative destruction |
| B. | The traditional society the preconditions for takeoff, the takeoff, the drive to maturity and the age of high mass consumption |
| C. | the preconditions for consumption the replication the drive to maturity and the age of high mass consumption |
| D. | the learning curve the age of high mass consumption post takeoff, and the drive to maturity |
| Answer» C. the preconditions for consumption the replication the drive to maturity and the age of high mass consumption | |
| 11. |
One criticism of Rostow’s theory of economic growth is that ? |
| A. | much available data contradicts his thesis about the takeoff stage |
| B. | there is no explanation of why growth occurs after takeoff |
| C. | his hypothesis of the stages of growth is difficult to test empirically |
| D. | All of the above are correct |
| Answer» E. | |
| 12. |
OECD stands for ? |
| A. | Organization for Economic Cooperation and Development and Development |
| B. | Oil Exporting Countries Development |
| C. | Organization for Environmental cooperative Department |
| D. | Open Economies Caucus on Development |
| Answer» B. Oil Exporting Countries Development | |
| 13. |
Karl Marx’s historical materialism views were shaped by all of the following EXCEPT ? |
| A. | The French Revolution |
| B. | The rise of industrial and capitalist production |
| C. | Political and labor revolts |
| D. | a growing spiritual rationalism |
| Answer» E. | |
| 14. |
For Rosentein Rodan a major indivisibility is in ? |
| A. | Supply |
| B. | infrastructure |
| C. | agriculture |
| D. | services |
| Answer» C. agriculture | |
| 15. |
Feudalism was undercut by?_x005F_x000D_I- the migration of serfs to the town_x005F_x000D_II- factory competition with handicraft and manorial production_x005F_x000D_III- expanded transport trade, discovery and new international markets_x005F_x000D_IV- the rise of the business corporation |
| A. | I and II only |
| B. | II and III only |
| C. | I, II and III only |
| D. | IV only |
| Answer» D. IV only | |
| 16. |
During the 1980s and 1990s a period of economic conservative governments in much of West and Japan, a leading approach among development economists was ? |
| A. | neoclassicism |
| B. | Marxism |
| C. | Rostow’s model |
| D. | classical appraoch |
| Answer» B. Marxism | |
| 17. |
Criticisms of Rostow’s stages of development include ? |
| A. | the difficulty of testing the stages scientifically |
| B. | conditions for takeoff are contradicted by historical evidence |
| C. | characteristics of one stage are not unique to that stage |
| D. | All of the above are correct |
| Answer» E. | |
| 18. |
Baran’s Neo-Marxist thesis has been criticized for ignoring the probability that power is frequently ? |
| A. | based on an alliance between landowners and peasants |
| B. | based on an alliance between peasants and the foreign bourgeoisie |
| C. | transferred from one elite to another when revolution occurs |
| D. | derived from domestic opponents of nationalism |
| Answer» D. derived from domestic opponents of nationalism | |
| 19. |
Adam Smith advocated ?_x005F_x000D_I- laissez faire_x005F_x000D_II- the invisible hand_x005F_x000D_III- free trade policy_x005F_x000D_IV- competitive markets |
| A. | I and II only |
| B. | II and III only |
| C. | I , II and III only |
| D. | I , II , III and IV |
| Answer» E. | |
| 20. |
According to the supply side of the vicious circle theory of development a country is poor because ? |
| A. | technology levels do not allow for self sufficiency |
| B. | it was previously too poor to save and invest |
| C. | underemployment is too widespread |
| D. | resource allocation is poor |
| Answer» C. underemployment is too widespread | |
| 21. |
A theory ?_x005F_x000D_I- is a systematic explanation of relationships between economic variables_x005F_x000D_II- explains causal relationships among variables_x005F_x000D_III- provides a basis for policy_x005F_x000D_IV- provides an explanation of all factors influencing economic growth. |
| A. | I only |
| B. | I and II only |
| C. | I , II and III only |
| D. | IV only |
| Answer» D. IV only | |
| 22. |
A major dependency theorist Andre Gunder Frank Suggests that the following economic activities have contributed to underdevelopment:_x005F_x000D_I- Workers migrating from villages to foreign-dominated urban complexes_x005F_x000D_II- Forming an unskilled labor force to work in factories and mines and on plantations_x005F_x000D_III- Replacing indigenous enterprises with technologically more advanced global subsidiary companies_x005F_x000D_IV- Closing the economy to trade with and investment from, developed countries |
| A. | I and II only |
| B. | II and III only |
| C. | I, II and III only |
| D. | I , II III and IV |
| Answer» D. I , II III and IV | |