Economics MCQs

Page No. 375

International trade in goods and services is sometimes used as a substitute for all of the following except ?


aInternational movements of capital


bInternational movements of labor


cInternational movements of technology


d Domestic production of different goods and services



A primary reason why nations conduct international trade is because ?


aSome nations prefer to produce one thing while others produce another


bResources are not equally distributed to all trading nations


cTrade enhances opportunities to accumulate profits


d interest rates are not identical in all trading nations



According to the next basic needs include ?


afood, clothing and housing


b health, education and quality housing


c adequate nutrition, primary education health sanitation water supply and housing


d longevity and living standards



Longevity is proxy for ________ in the Human Development Index?


ahealth and nutrition


bliving standard


c infant mortality


d Purchasing Power Parity


View Answer health and nutrition

The Physical Quality of Life Index (PQLI) combines three indicators They are ?


ainfant mortality life expectancy and adult literacy rate


bcrime rate clean environment and quality of housing


cair pollution rate, Water pollution rate and sanitation


dhealth education and environment



The University of Pennsylvania researchers Summers and Heston compute the price level of GDP as the ratio of purchasing power parity (PPP) exchange rate to the actual exchange rate where ?


aboth exchange rates are measured s the domestic currency price of the US-dollar


bboth exchange rates are not converted into international dollars


cboth exchange rate are pegged


dboth exchange rate are converted into Big Mac PPP formula



The Paasche index uses _________ weights?


acurrent-year


bbase-year


cfisher-ideal index


dPurchasing Power Parity (PPP)


View Answer current-year

OPEC is the ?


aOrganization of Petroleum Exporting Country


b Organization of Pre-European Commission


cOil Producing Economies Caucus


dOrganization of Problematic Economies Committee



One classification of development levels used by the World Bank divides countries into three group on the basis of GNP per capita They are ?


aNIC, OPEC and G7


bLow income , middle income and high income


cSoutheast Northeast and Southwest


dAsia, America and Europe



Which of the following are low income countries income country ?


aCanada


bUnited States


cMexico


dAustralia


View Answer Mexico

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