LDCs are reluctant to pursue development through the export of primary products because of ____ and _____ ?

Related Mcqs:

1. If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?

   A. falls; rise; falls; surplus
   B. is static; low; rise; deficit;
   C. falls; falls; falls; surplus
   D. rise; falls; rises; deficit

2. 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

3. Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to ____ tin and an export quota agreement would require that member countries _________ their export of tin?

   A. purchase; decrease
   B. purchase; increase
   C. sell; increase
   D. sell; decrease

4. In the Px = export price index, Pm = import price index, Qx = export quantity index,and Qm = import quantity index. Developing countries tend to maintain that their commodity term of trade have declined over the long run suggesting that _________ has declined?

   A. Px/Pm
   B. Pm/Px
   C. (Pm/Px)Qm
   D. (Px/Pm)Qx

5. The booming of North Seas’ gas export revenues in the 1970s that appreciated the guilder, making industrial export more costly in foreign currencies and increasing foreign competition and unemployment is known as ?

   A. Trade deficit
   B. Blind river disease
   C. Dutch disease
   D. Economic turmoil

6. Micheal Roemer’s three-sector model shows that growth in the booming export sector I- reduces the price of foreign exchange II- retards other sectors’ growth by reducing incentives to export other commodities III- reduces incentives to replace domestic goods for imports IV- raises factor and input prices for non-booming sectors ?

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

7. Export primary commodity concentration ratios are ?

   A. commodity exports as a percentage of GDP per capita of exporting country divided by importing country
   B. export earnings as a ratio of population
   C. total merchandise export divided by Gross National Income
   D. food, raw materials minerals and organic oils and fat as a percentage of total merchandise exports

8. A person will continue to pursue an activity up to the point where ?

   A. Marginal benefit equals marginal damage cost
   B. marginal benefits equals marginal social cost
   C. marginal benefit equals marginal private cost
   D. marginal social cost equals marginal external cost

9. If the state Bank of Pakistan wished to pursue an expansionary monetary policy it would ?

   A. increase the minimum reserve asset ratio.
   B. buy government securities on the open market
   C. raise interest rates
   D. sell government securities on the open market

10. If the State Bank of Pakistan wished to pursue a tight monetary policy it would ?

    A. reduce the minimum reserve asset ratio.
    B. buy government securities on the open market
    C. lower interest rates
    D. sell government securities on the open market