Economics MCQs

Page No. 389

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


a unstable export markets

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bimproving terms of trade

✓


c limited access to the markets of industrial countries

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d highly elastic demand curves for their products

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


abe a manufactured good

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b be a primary product

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chave a low price elasticity of supply

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d have a high price elasticity of demand

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


aimport substitution

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bexport promotion

✓


ccommercial dumping

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d multilateral contract

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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

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bprice inflation

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cconstrained economic growth

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d improving terms of trade

✓



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


ainternational trade per capita

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b real income per capital

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c unemployment per capita

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d calories per capita

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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

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b sell 8 million pounds of tin

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cbuy 4 million pounds of tin

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dbuy 8 million pounds of tin

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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

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bsell 8 million pounds of tin

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c buy 4 million pounds of tin

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d buy 8 million pounds of tin

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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

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

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

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

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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

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cCouncil on Foreign Relations

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d Organization of petroleum Exporting Countries

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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

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

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

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

✓



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