Depression is a drastic decline in a national of international economy It’s characteristic is ?

Related Mcqs:

1. Depression is a drastic decline in a national or international economy. It’s characteristic is_____________?

   A. Decreasing business activity
   B. Falling prices
   C. Unemployment
   D. All of these

2. According to the Brandt report the IMF’s insistence on drastic measures in short time periods ?

   I- contributes to low-income countries recovery quickly
   II- reduces basis-needs attainment
   III- may lead to IMF riots
   IV- may lead to the downfall of governments

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

3. 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

4. Developments in a national economy can affect the outcome of an international financial transaction. What this process is called ?

   A. International economic risk
   B. Country economic risk
   C. Ultra-country economic risk
   D. Outcome risk

5. What is more likely to be found in a free market economy than in a planned economy ?

   A. an even distribution of income
   B. an incentive to innovate
   C. a wide range of public goods
   D. full employment of labor

6. Developing countries that concentrate production in agricultural products or raw materials may face a long-run decline in their international terms of trade because of ?

   A. inelastic demand for these products in advanced countries
   B. large increases in the supplies of these products on world markets because of export expansion policies
   C. sluggish demand for these products in advanced countries
   D. All of the above

7. 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

8. 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

9. 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

10. 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