Economics MCQs

Page No. 190

If an increase in the price of a good has no impact on the total revenue in that market demand must be ?


aall of these answers

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bprice inelastic

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cunit price elastic

✓


dprice elastic

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View Answer unit price elastic

If a fisher must sell all of his daily catch before it spoils for whatever price he is offered once the fish are caught the fisherman’s price elasticity of supply for fresh fish is ?


azero

✓


binfinite

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cone

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dunable to be determined form this information

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View Answer zero

If the cross-price elasticity between two goods is negative the two goods are likely to be ?


asubstitutes

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bcomplements

✓


cnecessities

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dluxuries

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View Answer complements

Which of the following would cause a demand curve for a good to be price inelastic ?


aThe good is luxury

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bThere are a great number of substitutes for the good

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c The good is a necessity

✓


dThe good is an inferior good

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If a small percentage increase in the price of a good greatly reduces the quantity demanded for that good, the demand for that good is ?


aincome inelastic

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b price inelastic

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cprice elastic

✓


dunit price elastic

✖


View Answer price elastic

The Keynesian remedy for unemployment is to ?


adecrease aggregate demand

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breduce tax rates or lower interest rates

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cdecrease government spending

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d decrease private consumption and investment

✓



Which of the following is not TRUE about rural urban migration ?


aMigration to the cities is a larger contributor than natural population growth to urban labor growth is sub Saharan Africa

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bIn Latin America natural population increase is the major source of urban growth

✓


cFrom 1975 to 2000 the number of cities in LDC with populations over 1 million increased from 20 to 50

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d The urban share of total LDC population grew from 27 percent in 1975 and 35 percent in 1992 to 40 percent in 2003

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The theoretical basis for zero marginal productivity of labor was the concept of ?


a marginal rate of substitution

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b labor force literacy

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csubstitution of leisure and work among labor

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dlimited technical sustainability of factors

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The invisibly underemployed ?


aare workers who are compelled to work short hours

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bresult from an inadequate use of workers capacities

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care part-time workers who voluntarily work short hours

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dNone of the above is correct

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Which of the following is not TRUE about unemployed in LDCs ?


aThe unemployment rate for youths is twice that of people over 24

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b Unemployment in rural areas is twice that of urban areas

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cWorld-wide there are fewer unemployed females than males, but the rate is higher for women

✓


dThe unemployed are relatively well educated

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