Economics MCQs

Page No. 191

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


apersons 15 to 24 years old

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bthe educated

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cresidents of urban areas

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dfrom the poorest 1/5 of the population

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Which of the following is not capita good ?


aplant and equipment

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bbuildings

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cinventories

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dconsumers goods

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View Answer consumers goods

Entrepreneurship is the ?


atechnique to manage raw materials efficiently

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bresidual of a production function

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cresource coordinating other productive resources

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dblueprint on how to manage the labor force

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


arepresent a vast underutilization of human resources

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b are potential source of social unrest and political discontent

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care uncomerated with poverty and inequality in LCDs

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dA and B

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View Answer A and B

Policies to reduce factor price distortion include?


aEncouraging small-scale industry

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bDecreasing subsidies to capital investors

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cReducing social security programs and payroll taxation

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dAll of the above

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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

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b a higher expected income in urban areas

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c better infrastructure in urban areas

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dthe availability of labor-intensive jobs in urban areas

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


ais insufficient for solving the urban unemployment problem

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bwill generate capital-intensive technologies

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c will generate more government revenue through urban wages

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d induces government to increase minimum wages

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Disguised unemployed is?


awhen marginal revenue productivity of labor is zero

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b the same as seasonal unemployment of LDC agricultural

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cthe rigid factor proportions in LDC agriculture and industry

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

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


adisguised unemployed

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bcyclical unemployed

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cseasonally unemployed

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dvoluntarily unemployed

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View Answer disguised unemployed

The unemployment rate is the ?


aemployed plus unemployed divided by labor force

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btotal employment divided by population

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c labor force divided by population

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d unemployed divided by employed

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