Imitating labor standards from rich countries in LDCs may increase ?

Related Mcqs:

1. Central banks in LDCs generally have less effect on expenditure and output than in LDCs because of ?

   I- an externally dependent banking system
   II- a poorly developed securities market
   III- a low percentage of demand deposits divided by the total money supply
   IV- the relative insensitivity of investment and employment to monetary policies

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

2. Labor productivity is higher in DCs such as Japan and Germany than LDCs due to ?

   A. high formal education and training
   B. better health and physical condition of the labor force
   C. Both a and b are correct
   D. None of the above is correct

3. In the long run, expanding educational and training facilities, transportation and communication and other infrastructure in LDCs should increase ?

   A. productivity paradox
   B. absorptive capacity
   C. the residual
   D. uncertainly

4. Less demand in the economy may increase unemployment; this may lead to less spending which may reduce demand further. This is called ?

   A. The upward accelerator
   B. The downward multiplier
   C. The upward PPF
   D. The downward mpc

5. Which of the following statement is not true about LDCs ?

   A. Most LDCs have less than 1/10 the per capita GNP of the U.S
   B. A greater share of GNP would have to be devoted to education to attain the same primary enrollment rates as in the U.S
   C. Setting up western labor standard and minimum wages in labor-abundant LDCs is sensible
   D. Most LDCs have a greater shortage of qualified teachers than the U.S does

6. Which of the following is true with regard to a tax on labor income? Taxes on labor income tend to encourage ?

   A. the unscrupulous to enter the underground economy
   B. the elderly to retire early.
   C. all the things described in these answers.
   D. second earners to stay home.
   E. workers to work fewer hours

7. Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?

   XA. wages and rents should fall in Country A
   B. wages and rents should rise in Country A
   C. wages should rise and rents should fall in Country A
   D. wages should fall and rents should raise in Country A

8. one of the tenets of the classical view of the labor market is that the wage adjustments that are necessary to clear the labor market occur ?

   A. quickly
   B. slowly
   C. very infrequently
   D. instantly

9. Poor developing countries typically impose __________ tariffs than rich advanced nations on imports?

   A. lower
   B. higher
   C. about the same height
   D. None of the above

10. Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flows from poor to rich countries by ?

    A. the brain drains from LDCs to DCs
    B. the price role of political and credit-market risk in many LDCs
    C. the law of increasing returns that implies that the marginal productivity of capital is higher in LDCs
    D. the fat that the DC capital market is perfectly competitive