Economics MCQs

Page No. 389

All of the following are trade problems of developing countries except?


a unstable export markets


bimproving terms of trade


c limited access to the markets of industrial countries


d highly elastic demand curves for their products



To be considered a good candidate for export cartel, a commodity should ?


abe a manufactured good


b be a primary product


chave a low price elasticity of supply


d have a high price elasticity of demand



Hong Kong and South Korea are examples of developing nations that have recently pursued ________ industrialization policies?


aimport substitution


bexport promotion


ccommercial dumping


d multilateral contract


View Answer export promotion

For the oil-importing countries, the increase in oil prices in 1970s and early 2000s contributed to all of the following except ?


abalance of trade deficits


bprice inflation


cconstrained economic growth


d improving terms of trade



A widely used indicator to differentiate developed countries from developing countries is ?


ainternational trade per capita


b real income per capital


c unemployment per capita


d calories per capita



Instead, assume that global economic expansion causes the quantity of tin demanded to increase by 4 million pounds at each price To maintain price of tin at the target price you would ?


asell 4 million pounds of tin


b sell 8 million pounds of tin


cbuy 4 million pounds of tin


dbuy 8 million pounds of tin



Assume that global recession causes the quantity of tin demanded to decrease by 4 million pounds at each price To maintain the price of tin at the target price you would ?


asell 4 million pounds of tin


bsell 8 million pounds of tin


c buy 4 million pounds of tin


d buy 8 million pounds of tin



Assume That the firms operate as purely competitive sellers (a purely competitive industry) In the long run, equilibrium price equals _________ quantity equals _________ and profits total _________?


a$100, 2 million barrels per day $60 million


b $80, 4 million barrels per day $70 million


c$60, 6 million barrels per day, $20 million


d$40, 8 million barrels per day, $0 million



Which of the following organizations primarily provides long-term loans to developing countries to help them develop their infrastructure such as schools hospitals and roads ?


aWorld Bank


bInternational Monetary Fund


cCouncil on Foreign Relations


d Organization of petroleum Exporting Countries


View Answer World Bank

The People’s Republic of China ?


ais the first of the East Asian countries to be recognized for a successful outward-oriented development strategy


b has retained to the present time its strategy of import substitution as a source of economic growth


chas always accounted for a significant share of international trade, given its very large population


dhas significantly increased its openness to international trade and foreign investment in recent decades



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