A. Toyota builds a new plant in the north of England
B. EDF of France buys shares in Scottish & Southern Energy of the UK, and Scottish & Southern Energy uses the Proceeds to build a new hydro-electric power station in Scotland
C. Deutsche Bank of Germany buys some new software from UK Supplier
D. JCB builds a new plant near Manchester
Economics Mcqs
If Toyota builds a new plant in the north of England ?
A. None of these answers
B. There has been an increase in foreign portfolio investment in the UK
C. Once the plant starts producing cars UK GDP will rise less than UK GNP
D. once the plant starts producing cars UK GDP will rise more than UK GNP
Which of the following expenditures to enhance productivity is most likely to emit a positive externality ?
A. Megabank buys a new computer
B. Naila pays her university tuition fees.
C. OGDC leases a new oil field
D. Indus Motors buys a new drill press
To increase growth, governments should do all of the following except ?
A. encourage foreigners to investment in your country
B. encourage saving and investment
C. nationalize major industries
D. encourage research and development
E. Promote free trade
Many East Asian countries are growing very quickly because ?
A. They save and invest an unusually high percentage of their GDP
B. They have always been wealthy and will continue to be wealthy, which is known as the “snowball effect”
C. They are imperialists and have collected wealth from previous victories in war
D. They have enormous natural resources.
Once a country is wealthy ?
A. it no longer needs any human capital
B. capital becomes more productive due to the “catch-up- effect”
C. none of these answers
D. it may be harder for it to grow quickly because of the diminishing returns to capital
For a given level of technology, we should expect an increase in productivity within a nation when there is an increase in each of the following except ?
A. labor
B. physical capital/worker
C. human capital/worker
D. natural resources/worker
As economic development proceeds income inequality tends to follow a(n) ….. curve?
A. convex
B. inverted U shaped
C. L-shaped
D. S-Shaped
If a production function exhibits constant returns to scale ?
A. doubling all of the inputs more than doubles output due to the catch-up effect
B. doubling all of the inputs has absolutely no impact on output because output is constant
C. doubling all of the inputs less than doubles output due to diminishing returns
D. doubling all of the input’s doubles output
Peasants are ?
A. rural politicians
B. rural cultivators
C. rural industrialist
D. rural, religious group