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.

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btariffs and quotas prevent dollars from leaving the country

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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

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The low-income economies generally have the following except ?


adeficient infrastructures

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blow life expectancies

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c low savings

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da per capital GNP of more than $900

✓



Industrialization?


acauses development

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b is positively related to development

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cid inversely related to development

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dinhibits development

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What is gross domestic product (GDP) ?


aincome earned through foreign exchange

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bthe number of dollars earned in industry

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c income earned within a country’s boundaries

✓


dgoods received from the nation’s residents

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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

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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

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b proportion of the primary export commodity in total exports

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cratio of four leading commodities to total merchandise exports

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d total annual investment made in production of exported commodities

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


a a temperate climate

✓


bnatural resources

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can adequate capital bases

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dtechnological advance

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The informal sector includes ?


aartisans, cottage industrialists, petty traders, teashop proprietors

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b garbage pickers jitney unauthorized taxis repair persons

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cthe self employed

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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

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

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cis the wage used to pay unskilled workers?

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d does not include monopoly profits

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Export primary commodity concentration ratios are ?


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

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bexport earnings as a ratio of population

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ctotal merchandise export divided by Gross National Income

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

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