A theory ?

Related Mcqs:

1. Keynesian economics is an economic theory of British economist John Maynard. What this theory states ?

   A. A free market is necessary for economic growth and stability
   B. Regulation is necessary for economic growth and stability
   C. Active government intervention is necessary to ensure economic growth and stability
   D. Government intervention is not necessary to ensure economic growth and stability

2. Macroeconomic theory that emphasized the theories of Keynes and de-emphasized the classical theory developed as the result of the failure of ?

   A. economic theory to explain the simultaneous increases in inflation and unemployment during the 1970s
   B. The classical model to explain the prolonged existence of high unemployment during the Great Depression
   C. fine tuning during the 1960s
   D. the economy to grow at a rapid rate during the 1950s

3. One criticism of Rostow’s theory of economic growth is that ?

   A. much available data contradicts his thesis about the takeoff stage
   B. there is no explanation of why growth occurs after takeoff
   C. his hypothesis of the stages of growth is difficult to test empirically
   D. All of the above are correct

4. According to the supply side of the vicious circle theory of development a country is poor because ?

   A. technology levels do not allow for self sufficiency
   B. it was previously too poor to save and invest
   C. underemployment is too widespread
   D. resource allocation is poor

5. The Vicious circle theory states that ?

   A. growing government assistance create addiction to welfare programs
   B. low income levels create pressure for money creation
   C. low income levels create pressure for cheap imports
   D. low per capita incomes creates low savings that keep incomes low

6. The Vicious circle theory indicates that ?

   A. a country is poor because it has lower productivity but high savings
   B. as countries grow richer they save less
   C. poverty perpetuates itself in mutually reinforcing circles on supply and demand sides
   D. market size is large in LDCs

7. According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?

   A. similar endowments of natural resources
   B. similar levels of technology
   C. similar per-capita incomes
   D. similar wage levels

8. The factor endowment theory was pioneered by ?

   A. Adam smith
   B. David Ricardo
   C. Wassily Leontief
   D. Eli Heckscher and Bertil Ohlin

9. In the kinked Demand Curve theory it is assumed that ?

   A. An increase in price by the firm is not followed by others
   B. An increase in price by the firm is followed by others
   C. A decrease in price by the firm is followed by others
   D. Firms collude to fix the price

10. The Kinked Demand curve theory assumes ?

    A. Firms cooperate
    B. Firms act as part of cartel
    C. Firms are competitive
    D. Firms are not profit maximisers