Economics MCQs

Page No. 368

Shortly after 1979 World Bank introduced loans that emphasized reforms in trade, agriculture industry public enterprise financial energy education or other sectors and were know as ?


aStructural adjustment loans


bsectoral adjustment loans


c internal adjustment loans


d external leverage loans



Which of the following factors potentially increased the vulnerability to the 1997 Asian financial and currency crisis ?


atrade account surplus


bmassive reverse outflows of capital


ctechnological transfer from DCs


dSymmetric informational in financial market



Net transfers are______________?


ainvestment loans, and grants from overseas minus international resource outflows


bnet international resource flows minus net international interest payments and profit remittances


cinternational resource outflows minus international balance of payments and profit remittances


dforeign direct investment inflow minus investment loans and grants from overseas



Which of the following country did Not suffer from increased poverty from debt and financial crises in the 1990s ?


aSingapore (1994)


bMexico (1994)


c Russia (1998)


dBrazil (1998)


View Answer Singapore (1994)

Which of the following country did not experience large capital flights from 1976 to 1984 ?


aArgentina


bVenezuela


cMexico


dCanada


View Answer Canada

A country’s total external debt (EDT) includes ? I. short term debt with a maturity of one year or less II. long-term debt with a maturity of more than one year III. repurchase obligations to the IMF IV. IV public official development assistance


aI and II only


b III and IV only


cI, II and III only


dI, II and IV only


View Answer I, II and III only

LDCs often have a comparative advantage in the production of ?


aprimary products


bintermediate products


cmanufactured products


d financial services


View Answer primary products

Output fell sharply in the transition economies because ?


abanks were unable to function


bthere was little corporate control


cvital infrastructure was missing


dAll of the above


View Answer All of the above

If goods are exported for less than society’s marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from?


aan import subsidy


ba quota


ccomparative advantage


dan export subsidy


View Answer an export subsidy

A tariff causes domestic firms to ________ and consumers to?


aoverproduce, under consume


bOverproduce, overconsume


cunderproduce, under consume


dunderproduce, overconsume



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