Economics MCQs

Page No. 191

The openly unemployed in LDCs are usually from all of the following except ?


apersons 15 to 24 years old


bthe educated


cresidents of urban areas


dfrom the poorest 1/5 of the population



Which of the following is not capita good ?


aplant and equipment


bbuildings


cinventories


dconsumers goods


View Answer consumers goods

Entrepreneurship is the ?


atechnique to manage raw materials efficiently


bresidual of a production function


cresource coordinating other productive resources


dblueprint on how to manage the labor force



Based on Nafziger and Auvinen’s study high unemployment rates ?


arepresent a vast underutilization of human resources


b are potential source of social unrest and political discontent


care uncomerated with poverty and inequality in LCDs


dA and B


View Answer A and B

Policies to reduce factor price distortion include?


aEncouraging small-scale industry


bDecreasing subsidies to capital investors


cReducing social security programs and payroll taxation


dAll of the above


View Answer All of the above

The simplest explanation based on Lewis’s model for rural-urban migration is ?


aThat people migrate when urban wages exceed rural wages


b a higher expected income in urban areas


c better infrastructure in urban areas


dthe availability of labor-intensive jobs in urban areas



According to Harris and Todaro, creating urban jobs by expanding industrial output ?


ais insufficient for solving the urban unemployment problem


bwill generate capital-intensive technologies


c will generate more government revenue through urban wages


d induces government to increase minimum wages



Disguised unemployed is?


awhen marginal revenue productivity of labor is zero


b the same as seasonal unemployment of LDC agricultural


cthe rigid factor proportions in LDC agriculture and industry


ddue to capital formation and the level of technology remaining constant.



During the Great Depression workers in DCs who took inferior jobs as a result of being laid off were known as ?


adisguised unemployed


bcyclical unemployed


cseasonally unemployed


dvoluntarily unemployed


View Answer disguised unemployed

The unemployment rate is the ?


aemployed plus unemployed divided by labor force


btotal employment divided by population


c labor force divided by population


d unemployed divided by employed



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