Economics MCQs

Page No. 228

If there is an increase in the price of apples which causes consumers to purchase fewer kilograms of apples and more kilograms of oranges, the CPI will suffer from ?


anone of these answers

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bsubstitution bias

✓


cbase year bias

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d bias due to unmeasured quality change

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View Answer substitution bias

Which of the following would probably cause the CPI to rise more than the GDP deflator in the Pakistan ?


aAn increase in the price of BMWs produced in Germany and sold in the Pakistan

✓


bAn increase in the price of Peugeots produced in the Pakistan

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cAn increase in the price of helicopters purchased by the Pak Navy.

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dAn increased in the Price of domestically produced armoured vehicles sold exclusively to Iran

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Inflation can be measured by all of the following except the ?


aAll of these answers are used to measure inflation.

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bconsumer price index

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cGDP deflector

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dfinished goods price index

✓



Guest worker programs usually result in temporary migration of workers from ?


aimpoverished countries to impoverished countries

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bimpoverished countries to wealthy countries

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c wealthy countries to wealthy countries

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d wealthy countries to impoverished countries

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The migrations of electricians from low-paying nations to high-paying nations is most likely to be challenged by ?


aelectrician unions in the high-paying nations

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belectrician unions in the low paying nations

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celectrician employers in the high-paying nations

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delectricians who stay in the low paying nations

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The migration of employable workers from low-paying nations to high-paying nations will ?


adecrease wage rates in the low-paying nations

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bdecrease productivity and real output in the world

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c increase business or capitalist incomes in the high-paying nations

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d increase business or capitalist incomes in the low-paying nations

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International joint ventures can lead to welfare losses when the newly established firm ?


aadds to the pre-existing productive capacity

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b enters markets neither parent could have entered individually

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cyields cost reductions unavailable to parent firms

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d gives rise to increased amounts of market power

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Accusations of American labor unions against U.S multinational firms include all of the following except ?


a enjoy unfair advantage in taxation

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bexport jobs by shifting technology overseas

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cexport jobs by shifting investment overseas

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d operating at output levels where scale economies occur

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Multinational corporations face problems since they ?


acannot benefit from the advantage of comparative advantage

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bmay raise political problems in countries where their subsidiaries operate

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ccan only invest at home but not overseas

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d can only invest overseas but not at home

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Multinational corporations ?


aincrease the transfer of technology between nations

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b make it harder to nations to foster activities of comparative advantage

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calways enjoy political harmony in nations where their subsidiaries operate

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d require governmental subsidies in order to conduct worldwide operations

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