Between 2005 and 2006 the real income of a developing island rises from $120,000 to $160,000, while its population grows from 1,000 to 1,100. By about how much has real income per capita increased?
Correct answer B. $25
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Economics MCQs
Page 95 of Economics multiple-choice questions with answers. Tap an option to check yourself.
Page 95 of 131
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What are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States collectively known as?
Correct answer D. G-7 countries
In low-income countries, how large a surplus does the average agricultural family produce?
Correct answer B. Enough to supply only a small non-agricultural population
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Based on field research in Africa, James Pickett, D. J. C. Forsyth and N. S. McBain concluded that business people often want the most advanced design without realising it may not be the most profitable. To what did they attribute this attitude?
Correct answer A. Engineering mentality
What is the ratio of the population density of developing countries to that of developed countries?
Correct answer A. 2
What is the efficiency wage?
Correct answer D. Wage rate divided by the productivity of labor
What are dual economies?
Correct answer C. With a modern manufacturing sector as well as a traditional agricultural sector
A project yields a net income of $200 a year for 4 years and nothing afterwards. With a discount rate of 5 per cent, what is the discounted value of the total income stream over the 4 years?
Correct answer A. More than zero but less than 800
What distinguishes a dual economy from other economies?
Correct answer B. A traditional agricultural sector and a modern industrial sector
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Which of the following is not a natural public monopoly?
Correct answer B. Mobile phone
Internal economies of scale produce a continuously falling average cost curve, making more than one firm in the industry inefficient. What does this illustrate?
Correct answer A. A natural monopoly
In the long run, what should expanding education, training, transport, communications and other infrastructure in LDCs increase?
Correct answer D. Absorptive capacity
The remark ‘You can see the computer age everywhere but in the productivity statistics’ is attributed to which economist?
Correct answer A. Robert Solow
What causes the lack of absorptive capacity in developing countries?
Correct answer E. All of the above are correct
Which of the following statements is not true?
Correct answer D. In 2001 internet users per 1,000 people in middle-income countries were greater than in high-income countries.
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Which of the following is true in less developed countries (LDCs)?
Correct answer B. Labor is often underemployed, having a low alternative cost
Vaccinating people against measles, rubella, polio and cholera greatly increases net social benefits by improving the population’s health and productivity. What is this an example of?
Correct answer B. External economies
Which of the following is an example of an external diseconomy?
Correct answer A. Environmental pollution
What are market prices called once adjusted for differences between social and private cost-benefit calculations?
Correct answer C. Shadow prices
In the 1980s, economists studying the sources of growth found no positive link between investment in information and communications technology (ICT) and productivity. What is this known as?
Correct answer A. Productivity paradox