Economics Mcqs
Suppose, due to political instability, Russians suddenly choose to invest in UK assets as opposed to Russian assets Which of the following statements is true regarding UK net foreign investment ?

A. Uk net foreign investment is unchanged because only uk residents can after uk net foreign investment
B. Uk net foreign investment rises
C. Uk net foreign investment falls
D. None of the above

Which of the following statements about trade policy is true ?

A. A country’s trade policy has no impact on the size of its trade balance
B. None of these answers
C. A restrictive import quota decreases a country’s net exports
D. A restrictive imports quota increases a country’s net exports

Which of the following groups would not benefit from an EU imports quota on Japanese cars ?

A. Eu consumers who buy electronics from japan
B. Eu farmers who export grain
C. Employees of eu car manufacturers
D. Shareholders of german carmaker bmw

An export subsidy should have the opposite effect of ?

A. A government budget deficit
B. Capital flight
C. An increase in private saving
D. A tariff

Dani Rodrik points out that ?

A. An economy more open to foreign trade and investment faces a more inelastic demand for unskilled workers
B. Employers and consumers can more readily replace domestic workers with foreign workers by investing abroad or buying imports
C. Globalization increases job insecurity
D. Financial liberalization in ldcs leads to collapse of the economy

Which of the following statement is NOT true about OECD aid ?

A. During the 1980s oecd countries contributed four fifths of the world’s bilateral official development assistance to ldcs
B. In the early 1990s the oecd contributed 98 percent of all aid
C. The oecd aid increased from $6.9 billion in 1970 to $8.9 billion in 2001
D. In 2001, only denmark norway, sweden, the netherlands, and luxembourg exceeded the aid target for ldcs

Japan’s programs ?

I- Are understaffed politically muddled and administratively complex
Ii- are biased toward asia
Iii- go primarily to less developed countries in africa
Iv- focus on loans and the grant element of aid is low

Aid or official development assistance (ODA) includes ?

I- Developments grants
Ii- loans with at least 25 percent grant element
Iii- military assistance
Iv- technical cooperation

Which of the following groups would be most harmed by a UK government budget deficit ?

A. Foreigners who wish to buy assets in the uk
B. Bae systems wishing to sell aircraft to saudi arabia
C. Uk residents wishing to buy foreign produced cars
D. Lenders of loanable funds

Capital flight ?

A. Decreases a country’s net exports and increases its long-run growth path
B. Increases a country’s net exports and increases its long-run growth path
C. Increases a country’s net exports and decreases its long-run growth path
D. Decreases a country’s net exports and decreases its long-run growth path