Economics MCQs with Answers – Micro and Macro – Page 94

Question 1861 Comparative GDP

Which statement best describes US productivity growth over the past fifty years?

Correct answer D. Productivity grew quickly in the 1950s and 1960s, more slowly from the early 1970s through 1995, and then quickly again

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Question 1862 Characteristics and Institutions of Developing Countries

What are export primary commodity concentration ratios?

Correct answer A. Food, raw materials, minerals and organic oils and fats as a percentage of total merchandise exports

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Question 1863 Comparative GDP

To what is our standard of living most closely related?

Correct answer C. Our productivity because our income is equal to what we produce

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Question 1864 Characteristics and Institutions of Developing Countries

What is economic rent?

Correct answer C. Is the payment above the minimum essential to attract the resources to the market

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Question 1865 Comparative GDP

Which of the following government policies is least likely to increase growth in Africa?

Correct answer C. Increase restrictions on the importing of American tractors and electronics

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Question 1866 Characteristics and Institutions of Developing Countries

The informal sector includes which of the following: I. artisans, cottage industrialists, petty traders; II. garbage pickers, unauthorised taxis, repair persons; III. the self-employed; IV. activities with little capital, skill or entry barriers?

Correct answer C. All of I, II, III and IV

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Question 1867 Comparative GDP

In Pakistan, real GDP per person was Rs 18,073 in 2004 and Rs 18,635 in 2005. What was the growth rate of real output per person over this period?

Correct answer C. 3.1 percent

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Question 1868 Characteristics and Institutions of Developing Countries

Which one of the following is not needed for economic development?

Correct answer A. A temperate climate

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Question 1869 Characteristics and Institutions of Developing Countries

What is a country’s export commodity concentration ratio?

Correct answer B. Ratio of four leading commodities to total merchandise exports

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Question 1870 Characteristics and Institutions of Developing Countries

Under what condition does real GNP per capita rise?

Correct answer D. The rate of growth in real GNP is greater than the rate of growth in the population

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Question 1871 Characteristics and Institutions of Developing Countries

How is gross domestic product (GDP) defined?

Correct answer D. Income earned within a country's boundaries

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Question 1872 Characteristics and Institutions of Developing Countries

How is industrialisation related to development?

Correct answer B. Is positively related to development

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Question 1873 Characteristics and Institutions of Developing Countries

Low-income economies generally have all of the following except which one?

Correct answer B. A per capita GNP of more than $900

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Question 1874 Characteristics and Institutions of Developing Countries

When does real GNP per capita increase?

Correct answer C. The rate of growth of real GNP is greater than the rate of growth of population

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Question 1875 Characteristics and Institutions of Developing Countries

What is a family made up of two or more nuclear families of parents and children called?

Correct answer D. Extended family

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Question 1876 Characteristics and Institutions of Developing Countries

Which statement about low-income countries is true?

Correct answer D. The average agricultural family produces a surplus large enough only to supply a small non-agricultural population

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Question 1877 Characteristics and Institutions of Developing Countries

According to Lewis’s model, when does a dual economy grow?

Correct answer B. The modern sector increases its output share relative to the traditional sector

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Question 1878 Characteristics and Institutions of Developing Countries

All of the following statements about the informal sector are true except which one?

Correct answer B. Production is capital intensive

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Question 1879 Characteristics and Institutions of Developing Countries

Consider these statements on clientelism: I. it is also known as patrimonialism; II. it is the dominant pattern in many LDCs; III. it is a personalised relationship between patrons and clients; IV. it rests on unconditional loyalties with no mutual benefit. Which are correct?

Correct answer B. I, II and III only

Open question

Question 1880 Characteristics and Institutions of Developing Countries

Which of the following countries is not a high-income country?

Correct answer C. Mexico

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