Economics MCQs

Page No. 193

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


aaccess to more economic information than competitors

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bsuperior access to training and education

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ca lower discount of future earnings

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dA and B

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View Answer A and B

Capitalism is an economies system ?


a based on government intervention in the means of production

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bthat originated in the United States in the 19th Century

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cWhere private owners of capital make decisions based on profit

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d that dominated developing economies in the 19 Century

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


acreated stationary economies of scale

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bmaintained the relationship between firms and their clients

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creplaced price as the important

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dlimited the expansion of firms

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Technical advance involves ?


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

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

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c innovation investment credit creation and economies growth

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d patent management resource gains mature innovation and speculative gains

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


aPerfect competition

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b An economy below full employment

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cNo savings or technical change

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dNo entrepreneurial function is required

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


adepreciation generally improves the trade balance

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bdepreciation generally hurts the trade balance

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cno strong generalization is possible

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ddepreciation has no effect on the trade balance

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


apass through

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babsorption

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cadjustment mechanism

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dcurrency contract period

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View Answer pass through

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


asooner

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blonger

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cbigger

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dsmaller

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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

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bworsens

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c is unaffected

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dfalls for a while before increasing

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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

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

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cmust increase the balance of trade

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d All of the above

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View Answer All of the above

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