Economics Mcqs
LDCs often have a comparative advantage in the production of ?

A. Primary products
B. Intermediate products
C. Manufactured products
D. Financial services

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

The terms of trade measure ?

A. The income of one country compared to another
B. The gdp of one country compared to another
C. The quantity of exports of one country compared to another
D. Export prices compared to import prices

The marginal propensity of consume is equal to ?

A. Total spending / total consumption
B. Total consumption / total income
C. Change in consumption / change in income
D. Change in consumption / change in savings

To prevent the external value of the currency from falling the government might ?

A. Reduce interest rates
B. Sell its own currency
C. Buy its own currency with foreign reserves
D. Increase its own spending

What is not a feature of the EU as a single market ?

A. Elimination of border controls
B. No import taxes on goods bought in another members country
C. Each country can retain its own technical standards
D. Common security arrangements

A demand switching policy could be ?

A. Higher interest rates
B. Higher income tax
C. Tariffs
D. Reduced government spending

Tariffs are used to protect infant industries these industries are those which ?

A. Employ many young or untrained workers
B. Are competing with well-established overseas firms
C. Are not yet large enough to achieve economies of scale
D. Use a new technology

Economic integration ?

A. Occurs when countries are granted most favored nation status
B. Occurs when one country voluntarily agrees to reduce its exports to another country
C. Occurs when two or more nations join to form a free-trade zone
D. Occurs when countries develop an acquired comparative advantage that makes their industries more competitive in international markets