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Questions in this quiz (15)
1Compared to the developed countries, the LDCs have:
- A Higher birth rates and lower death rates
- BHigher birth rates and higher death rates
- CLower birth rates and higher death rates
2The Gini coefficient provides a measure of:
- AThe level of poverty
- B The level of relative inequality
- CDisguised unemployment
- DThe rate of growth
3According to the Harrod-Domar model, an increase in growth rates depends on
- AIncrease in capital-output ratio
- BDecrease in capital-output ratio
- CIncrease in marginal propensity to consume
- D None of the above
4If the birth rate is 6% and the death rate is 2%, the natural rate of population increase is :
- A0 .3%
- B3.0%
- C4.0%
- D8.0%
5The LDCs want foreign capital in the form of
- ALoans when they want to retain control of domestic industry
- BEquity when they want to share risks with foreign investors
- CLong-term loans for long-term infrastructure projects
- DAll of the above
6Which of the following statement is incorrect in the microeconomic household model for demand for children?
- AThe higher the household income, the greater the demand for children
- BThe higher the prices of all other goods relative to children, the smaller the quantity of children demanded
- CThe higher the prices of all other goods relative to children, the greater the quantity of children demanded
- DThe greater the strength of tastes for goods relative to children, the fewer children demanded
- AThe higher the household income, the greater the demand for children
7Griffin (1970) argues that:
- ATotal foreign aid the country receives is positively correlated with total national savings
- BAid-to-income ratio is positively correlated with national savings ratio
- CTotal foreign aid the country receives is negatively correlated with total national savings
- DAid-to-income ratio is negatively correlated with national savings ratio
8Which was not the reason that the capital account of many less developed countries turned negative in 1984?
- ARising debt service obligations
- BProtectionism in developed countries
- CDeclines in lending by international banks
- DCapital flight
9Which factor is not related to the Asian Financial Crisis in 1997?
- AForeign investors’ optimism foreseeing little exchange rate risk.
- BCapital flight preceding the Crisis
- COver-valued fixed exchange rate
- DAsset and real estate bubbles
10In the two-gap model, which of the following gaps, when binding, leads to foreign aid having the largest impact on GNP?
(a) Fiscal gap
(b) Savings gap
(c) Foreign exchange gap
(d) None of the above.- AFiscal gap
- BSavings gap
- CForeign exchange gap
- DNone of the above.
11Consider two countries A and B which produce wine and cheese. The per unit labour requirement for country A to produce wine and cheese is 6 and 3 respectively. For country B, the per unit labour requirement to produce wine and cheese is 3 and 4 respectively. Which of the following statements is true?
- Acountry A has a comparative advantage in producing wine
- Bcountry A has an absolute advantage in producing wine
- Ccountry B has an comparative advantage in producing cheese
- Dcountry B has an absolute advantage in producing wine
12Consider two countries A and B which produce wine and cheese. The per unit labour requirement for country A to produce wine and cheese is 6 and 3 respectively. For country B, the per unit labour requirement for wine and cheese is 1 and 2 respectively. Which of the following statements is true?
(a) country A has a comparative advantage in producing wine
(b) country A has an absolute advantage in producing wine
(c) country B has an comparative advantage in producing cheese
(d) country B has an comparative advantage in producing wine- Acountry A has a comparative advantage in producing wine
- Bcountry A has an absolute advantage in producing wine
- Ccountry B has an comparative advantage in producing cheese
- Dcountry B has an comparative advantage in producing wine
13. An implication for trade policy of a country following Import Substituting Industrialisation is that
(a) tariffs and taxes on imports will be reduced
(b) subsidies to exports will be increased
(c) taxes and tariffs on imports be increased
(d) taxes and tariffs will remain unchanged- ATariffs and taxes on imports will be reduced
- BSubsidies to exports will be increased
- CTaxes and tariffs on imports be increased
- DTaxes and tariffs will remain unchanged
14According to Prebisch-Singer theory less developed countries should not rely on agriculture for export earnings because
- AThe price elasticity of demand for agricultural goods is low
- BThe income elasticity of demand for agricultural goods is low
- CThe price elasticity of demand for agricultural goods is high
- DThe income elasticity of demand for agricultural goods is high
15. When the terms of trade of a country decreases, it implies
(a) the price of exports relative to the price of imports have decreased
(b) the price of exports relative to the price of imports have increased
(c) the price of exports relative to the price of imports have remain unchanged
(d) the price of exports have increased and the price of imports have decreased- AThe price of exports relative to the price of imports have decreased
- BThe price of exports relative to the price of imports have increased
- CThe price of exports relative to the price of imports have remain unchanged
- DThe price of exports have increased and the price of imports have decreased
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- Quiz on Untitled, created by khadijawarsama on 30/05/2015.
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- khadijawarsama
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- English
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- Created on 30 May 2015 · updated on 19 Feb 2016
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