Other Subjects
Other Subjects MCQs With Answers
0 Other Subjects MCQs for CSS, PPSC, FPSC, NTS and entry-test preparation. Take a scored quiz instead →
The Stolper-Samuelson Theorem states that an increase in the relative price of a good increases the real return to:
AThe scarce factor of the nation
BCapital owners exclusively
CThe factor used intensively in the production of that good
DLaborers exclusively regardless of sector
The Rybczynski Theorem asserts that an increase in the endowment of one factor of production, holding prices constant, leads to:
AAn equal percentage growth in both sectors
BA fall in national GDP
CAn immediate deterioration of terms of trade
DAn absolute increase in output of the sector using that factor intensively and a decrease in output of the other sector
The Optimum Currency Area (OCA) theory, developed by Robert Mundell, identifies key criteria for a successful monetary union including:
AHigh labor mobility and wage-price flexibility across member states
BIdentical tax structures in all nations
CStrict import quotas on non-member states
DSingle political head of state
The Efficiency Wage Theory suggests that firms may voluntarily pay wages above market-clearing levels to:
AIncrease worker productivity, effort, and reduce turnover
BComply with minimum wage legislation
CDecrease overall production output
DReduce tax liabilities
In an open economy, the National Income identity (Y = C + I + G + NX) implies that Net Exports (NX) equal:
APrivate Saving plus Public Saving
BGovernment Deficit minus Consumption
CNational Saving minus Investment (S - I)
DImports minus Foreign Aid
The Trilemma or Impossible Trinity in international macroeconomics states that a country cannot simultaneously maintain:
ALow inflation, high employment, and budget surplus
BHigh tariffs, free trade, and exchange stability
CHigh growth, low interest, and balanced trade
DFixed exchange rate, free capital mobility, and independent monetary policy
The Tobin Tax is a proposed levy on:
AInternational short-term financial currency transactions
BCarbon emissions of heavy industries
CLuxury consumer imports
DCorporate income reserves
The Tobin’s q ratio is defined as the ratio of the market value of a firm’s capital to its:
ABook value of total debt
BReplacement cost of capital
CAnnual sales revenue
DAnnual dividend payouts
The Samuelson Condition for the optimal provision of public goods requires that the sum of individual marginal rates of substitution (MRS) equals:
AThe average cost of production
BTotal consumer surplus
CThe Marginal Rate of Transformation (MRT)
DZero
The Crowding-In effect occurs when public investment in infrastructure:
ADisplaces private sector borrowing
BRaises interest rates steeply
CDecreases national GDP
DStimulates and increases private sector investment