Countries such as ________ that failed to adjust to a persistent external disequilibrium were more vulnerable to poverty displacement and even war ?

Related Mcqs:

1. Countries facing a persistent external deficit can ?

   I. borrow overseas
   II. increase trade restrictions and exchange controls
   III. undertake expansionary monetary and fiscal policies
   IV. Undertake expenditure-reducing policies

   A. I and II only
   B. III and IV only
   C. I, II and III only
   D. I, II and IV only

2. The Human Development Report 2003, which assumes that poverty is multidimensional calculates a human poverty index based on which of the following measures of deprivation ?

   I- probability at birth of not surviving to age 40
   II- adult illiteracy rate
   III- negative economic growth
   IV- lack of a decent standard of living

   A. I and II only
   B. III and IV only
   C. I, II and III only
   D. I, II and IV

3. Which exchange rate mechanism calls for frequent redefining of the par value by small amounts to remove a payments disequilibrium ?

   A. dual exchange rate
   B. adjustable pegged exchange rates
   C. managed floating exchange rates
   D. crawling pegged exchange rates

4. The theory of international exchange that holds that exchange rates adjust to offset differences in countries inflation rates in the ?

   A. price feedback theory
   B. trade feedback theory
   C. J-curve theory
   D. purchasing power parity theory

5. The external benefits of using cars are ____ and the external costs are _____?

   A. low; low
   B. high; high
   C. low; high
   D. high; low

6. High and persistent inflation is caused by ?

   A. unions increasing wages too much
   B. OPEC raising the price of oil too much
   C. governments increasing the quantity of money too much
   D. regulations raising the cost of production too much

7. Exchange rate of which of the following currencies falls because of persistent balance of payments deficit ?

   A. Gold currency
   B. Hard currency
   C. Silver currency
   D. Soft currency

8. In a competitive market, which of the following is least, likely to be the source of a persistent discriminatory wage differential ?

   A. All of these answers could be source of a persistent discriminatory wage differential
   B. the customer
   C. the government
   D. the employer

9. Suppose that a war is fought will biological weapons. The weapons destroy people but not capital. What is likely to happen to equilibrium wages and rental rates after the war when compared to their values before the war ?

   A. Wages rise, and rental rates fall
   B. Wages rise, and rental rates rise
   C. Wages fall, and rental rates rise
   D. Wages fall, and rental rates fall

10. If, in the long run, people adjust their price expectations so that all prices and incomes move proportionately to an increase in the price level then the long-run Phillips curve ?

    A. is vertical
    B. is negatively sloped
    C. has a slope that is determined by how fast people adjust their price expectations
    D. is positively sloped