A. money lent to the country being immediately invested abroad
B. People investing their money in urban business rather than agriculture
C. money moving around financial institutions rather than being invested in production
D. people investing money abroad rather than in their own country
Related Mcqs:
- When economists say that developing countries have a dualistic economy the 2 parts referred to are ?
A. modern sector and traditional sector
B. town and country
C. men and women
D. rich people and poor people - Structuralist economists who study developing countries focus their attention on ?
A. changes in industrial structure over time
B. specific barriers to development and how to overcome them
C. The impact of international trade structures on developing countries
D. the caste of class structure and discrimination in the labor market - A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work, save and invest. These economists are?
A. Supply-side economics
B. neo-Keynesian economists
C. rational-expectations economists.
D. new classical economists. - A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work save and invest these economists are ?
A. supply side economists
B. neo-Keynesian economists
C. rational -expectations economists
D. New classical economists - Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?
A. None of these answers
B. Disagree because they have different scientific judgments
C. really don’t disagree at all. It just appears that they disagree
D. disagree because they have different values - Suppose two economists are arguing about policies that deal with unemployment One economist says the government should fight unemployment because it is the greatest social evil The other economist response Nonsense Inflation is the greatest social evil These economists ?
A. really don’t disagree at all It just appears that they disagree.
B. disagree because they have different values.
C. none of these answers.
D. disagree because they have different scientific judgments. - Which of the following is will NOT reduce capital flight from source countries ?
A. dependable positive real interest rates
B. higher taxes on capital gains
C. more efficient state enterprises
D. market liberalization - Some economists and third-world policy makers criticize MNCs arguing that they have a negative effect on the developing country because they ?
I- increasing the LDC’s technological dependence on foreign sources resulting in less technological innovation by local workers
II- Hamper local entrepreneurship and investment in infant industries
III- increase unemployment rates from unsuitable technology
IV- Restrict subsidiary exports when they undercut the market of the parent companyA. I and II only
B. III and IV only
C. I, II and III only
D. I, II, III and IV - When economists say that people act rationally in their self interest, they mean that individuals _______?
A. look for and pursue opportunities to increase their utility
B. generally disregard the interests of others
C. are mainly creatures of habit
D. are unpredictableSubmitted by: Mansoor Ul Haque
- Economists use the term regulatory capture to mean a situation where the private sector firms being regulated ?
A. Persuade the regulator to operate in the industry’s interests
B. Persuade the regulator to act in the firms interests.
C. Bribe the regulator.
D. Persuade the government to change the regulatory regime.
