Economics MCQs

Page No. 172

Increases in real GNP per capita occur when ?


a government programs direct resources away from investment goods to consumer goods.


btariffs and quotas prevent dollars from leaving the country


cthe rate of growth of real GNP is greater than the rate of growth of population


d the level of consumption expenditures rises relative to the level of saving



The low-income economies generally have the following except ?


adeficient infrastructures


blow life expectancies


c low savings


da per capital GNP of more than $900



Industrialization?


acauses development


b is positively related to development


cid inversely related to development


dinhibits development



What is gross domestic product (GDP) ?


aincome earned through foreign exchange


bthe number of dollars earned in industry


c income earned within a country’s boundaries


dgoods received from the nation’s residents



Increasing in the real GNP per capita occur when ?


agovernment programs direct resources away from investment goods to consumer goods.


b tariffs and quotas prevent countries from trading and thus prevent dollars from leaving each country


c the rate of growth in real GNP is greater than the rate of growth in the population


dthe level of consumption expenditures rises relative to the level of savings



A country’s export commodity concentration ratio is the ?


aaverage annual investment made in production of exported commodities


b proportion of the primary export commodity in total exports


cratio of four leading commodities to total merchandise exports


d total annual investment made in production of exported commodities



Which of the following is not a requirement for economic development ?


a a temperate climate


bnatural resources


can adequate capital bases


dtechnological advance



The informal sector includes ?


aartisans, cottage industrialists, petty traders, teashop proprietors


b garbage pickers jitney unauthorized taxis repair persons


cthe self employed


dAll of the above


View Answer All of the above

Economic rent ?


a is productive activity to obtain private benefit from public action and resources


bare the payments above the minimum essential to attract the resources to the market?


cis the wage used to pay unskilled workers?


d does not include monopoly profits



Export primary commodity concentration ratios are ?


acommodity exports as a percentage of GDP per capita of exporting country divided by importing country


bexport earnings as a ratio of population


ctotal merchandise export divided by Gross National Income


d food, raw materials minerals and organic oils and fat as a percentage of total merchandise exports



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