Economics MCQs

Page No. 193

Monopoly advantage is usually the result of greater opportunities such as ?


aaccess to more economic information than competitors


bsuperior access to training and education


ca lower discount of future earnings


dA and B


View Answer A and B

Capitalism is an economies system ?


a based on government intervention in the means of production


bthat originated in the United States in the 19th Century


cWhere private owners of capital make decisions based on profit


d that dominated developing economies in the 19 Century



According to William Baumol under oligopolistic competition among large, high tech business firms. innovation has ?


acreated stationary economies of scale


bmaintained the relationship between firms and their clients


creplaced price as the important


dlimited the expansion of firms



Technical advance involves ?


athe development of pure science, invention innovation financing the innovation and the innovation’s acceptance


b introducing new products modifying production functions creating credit and making profits


c innovation investment credit creation and economies growth


d patent management resource gains mature innovation and speculative gains



Which of the following is not an assumption of Schumpeter’s stationary state ?


aPerfect competition


b An economy below full employment


cNo savings or technical change


dNo entrepreneurial function is required



Empirical evidence regarding in the effects of currency depreciation on the balance of trade indicates that?


adepreciation generally improves the trade balance


bdepreciation generally hurts the trade balance


cno strong generalization is possible


ddepreciation has no effect on the trade balance



The analysis considers the ability of domestic and foreign price of adjust to devaluation in the short run ?


apass through


babsorption


cadjustment mechanism


dcurrency contract period


View Answer pass through

The shorter the ______ pass through period the ______ the desirable BOT effects of evaluation on quantities traded will appear ?


asooner


blonger


cbigger


dsmaller


View Answer sooner

Suppose that the United Kingdom devalues the pound if both exports and imports are written in terms of pounds then the United Kingdom balance of trade during a currency contract period ?


aimproves


bworsens


c is unaffected


dfalls for a while before increasing


View Answer is unaffected

If export contracts are written in terms of foreign currency and import contracts are denominated in domestic currency a depreciation of the dollar during the currency contract period ?


ashould increase the dollar value of exports


bshould not have any effect on the dollar value of U.S imports


cmust increase the balance of trade


d All of the above


View Answer All of the above

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