Which of the following is commonly cited as a benefit that MNCs can bring to a developing country?
Correct answer B. Helping to finance a savings gap or balance of payments deficit
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Economics MCQs
Page 112 of Economics multiple-choice questions with answers. Tap an option to check yourself.
Page 112 of 131
- Miscellaneous Economics 737
- Basic of Economics 430
- Markets, Efficiency And The Public Interest 167
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- Market 87
- Macroeconomic Issues and Analysis 75
- Money, Interest Rates And Output 73
- Introduction To Economics 70
- Population And Development 62
- Profit Maximizing Under Perfect Competition And Monopoly 56
- Income Inequality 52
- Non-Tariff Trade Barriers 48
- Aggregate Supply, Unemployment And Inflation 45
- Natural Resources and the Environment Toward Sustainable Development 44
- Costs , Supply And Perfect Competition 44
- Human Capital 42
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- Inflation & Productivity 30
- Regional Trading Arrangements 29
- Characteristics and Institutions of Developing Countries 24
- Oligopoly 23
- Consumer Theory vs. Real Consumers 20
- Applied Microeconomics 20
- Alternative Theories Of The Firm 20
- Public Goods 20
- Balance of Payments, Aid and Foreign Investment 19
- Prices, Wages & Taxes 19
- Comparative GDP 19
- Budget Deficits And The Trade Balance 18
- Macroeconomic Policy Tools 18
- Asymmetric Information 17
- Application of Economics 16
- Production Factors 16
- Monopoly & Competition 15
- Capital Formation, Investment Choice, Information Technology, And Technical Progress 15
- Monetary, Fiscal And Incomes Policy, And Inflation 15
- Average And Total Cost 14
- Poverty, Malnutrition, And Income Inequality 12
- Monetary Union 10
What is the term for a country’s decision to tie the value of its currency to another country’s currency, to gold or to a basket of currencies?
Correct answer C. Fixed exchange rate
Critics argue that MNCs harm developing countries because they: I. increase technological dependence on foreign sources; II. hamper local entrepreneurship and infant industries; III. raise unemployment through unsuitable technology; IV. restrict subsidiary exports that undercut the parent. Which are cited?
Correct answer C. All of I, II, III and IV
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What is the process called when a mortgage holder seizes the property of a homeowner who has not paid interest or principal on time as the mortgage contract requires?
Correct answer A. Foreclosure
How do Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flowing from poor to rich countries?
Correct answer C. The role of political and credit-market risk in many LDCs
Which exchange rate system involves no government intervention?
Correct answer C. Both of them
Why did real US food aid, along with food reserves, fall between the 1960s and the 1980s?
Correct answer C. U.S farm interests wanted to reduce surplus grain stocks
What is it called when a private company first offers its shares to the public market and investors?
Correct answer C. Going public
According to Harvard’s Dani Rodrik, what does globalisation involve?
Correct answer A. The increasing international integration of markets for goods services and capital
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What is the excess of the purchase price over the fair market value of net assets acquired under the purchase method of accounting called?
Correct answer C. Goodwill
Which statement about total US official development assistance to developing countries is correct?
Correct answer D. None of the above statements is true
What is the legal process by which a company receives a charter and is permitted by its state to operate as a corporation?
Correct answer C. Incorporation
Which money is referred to as ‘hot money’?
Correct answer C. Both of them
Which firm is described as insolvent?
Correct answer A. A firm that is unable to pay debts
Which form of business organisation lies between a partnership and a corporation?
Correct answer D. Joint stock company
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Keynesian economics is the theory of the British economist John Maynard Keynes. What does it state?
Correct answer B. Active government intervention is necessary to ensure economic growth and stability
What is it called when a firm’s business is ended, its assets are sold, the proceeds pay creditors and anything left goes to shareholders?
Correct answer C. Liquidation
Which interest rate do major international banks charge each other for borrowing?
Correct answer B. London Interbank Offered Rate (LIBOR)
What is the percentage of total industry sales controlled by a particular company called?
Correct answer C. Market share
The Nikkei Stock Average mainly applies to which equities?
Correct answer C. Mainly to Japanese equities