A dual economy is distinguished from other economies by having ?

Related Mcqs:

1. Dual economies are countries ?

   A. with double capital and labor/
   B. with a modern manufacturing sector as well as traditional agriculture sector
   C. that specialize in labor intensive products more than capital intensive products
   D. with foreign owned and domestically owned capital

2. According to Lewis’s model the dual economy grows only when ?

   A. the modern sector increases its output share relative to the traditional sector
   B. agricultural sector uses modern equipment
   C. agricultural sector hires labor economically
   D. modern manufacturing sector is labor intensive

3. A case when internal economies of scale bring about a continuously falling average cost curve that makes having more than one firm in an industry inefficient is illustrative of ?

   A. a natural monopoly
   B. an LDC’s limit of one firm to an industry
   C. an individual firm facing a horizontal (perfectly elastic) demand curve in LDCs
   D. The existence of oligopoly

4. Refer to Exhibit 6.If People in the economy expect inflation to be 6 percent but inflation turn out to be 3 percent the economy is operating at point ?

   A. H
   B. c
   C. d
   D. F

5. Refer to Exhibit 6.If People in the economy expect inflation to be 3 percent and inflation is 3 percent the economy is operating at point ?

   A. b
   B. I
   C. a
   D. H

6. Refer to Exhibit 6.Suppose the economy is in long-run equilibrium at point E. A sudden increase in government spending should move the economy in the direction of point ?

   A. d
   B. G
   C. E
   D. b

7. Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. An unexpected monetary contraction will move the economy in the direction of point ?

   A. H
   B. F
   C. E
   D. c

8. Suppose the economy is initially in long run equilibrium Then suppose there is a drought that destroys much of the wheat crop if policymakers allow the economy to adjust to long-run equilibrium on its own, according to the model to aggregate demand and aggregate supply what happens to prices and output in the long run ?

   A. Output rises; prices are unchanged from the initial value
   B. Output and the price level are unchanged from their initial values
   C. Output falls; prices are unchanged from the initial value
   D. Prices fall; output is unchanged from its initial value

9. An economy that trades with and has financial dealing with other countries is called a/an ________ economy?

   A. free-trade
   B. autarkic
   C. open
   D. mixed

10. The market power effect of an international joint venture can lead to welfare losses for the domestic economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting welfare gains for the overall economy ?

    A. R&D generating welfare improved technology
    B. development of more productive machinery
    C. new work rules promoting workers efficiency
    D. lower wages extracted from workers