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Other Subjects MCQs With Answers
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The principle of public expenditure which suggests government spending should benefit society as a whole rather than a small group is:
ACanon of Excess Profit
BLaw of Diminishing Marginal Returns
CPrinciple of Maximum Social Advantage
DPrinciple of Subsidiarity
Adolph Wagner’s Law of Increasing State Activities asserts that:
AGovernment spending always shrinks relative to national income
BTax revenues decline during economic expansions
CPublic debt causes immediate hyperinflation
DAs industrial economies grow, public expenditure naturally grows as a proportion of GDP
Which economist introduced the concept of the ‘Multiplier-Accelerator Interaction’ to explain business cycle fluctuations?
AJohn Hicks
BJoseph Schumpeter
CPaul Samuelson
DNicholas Kaldor
According to the Coase Theorem, private bargaining can solve externality problems efficiently without government intervention provided:
ATaxes are levied on all polluters
BProperty rights are clearly defined and transaction costs are negligible
CThe market is a natural monopoly
DIncome distribution is strictly equal
The slope of an indifference curve at any given point measures the:
AMarginal Rate of Technical Substitution (MRTS)
BPrice ratio of the two goods
CMarginal Rate of Substitution (MRS)
DMarginal Propensity to Consume (MPC)
The cross-price elasticity of demand between two substitute goods is always:
APositive
BNegative
CZero
DEqual to negative infinity
The Balassa-Samuelson Effect explains why price levels and service costs are systematically higher in:
APoorer, agrarian economies
BRicher, highly productive economies
CHigh-tariff protectionist nations
DLandlocked countries
Purchasing Power Parity (PPP) theory states that exchange rates between currencies are in equilibrium when their purchasing power is equalized based on:
AGold standard reserve backing
BCentral bank interest rate differentials
CA relative basket of goods in both countries
DForeign debt balances
The Marshall-Lerner Condition states that currency devaluation will improve the trade balance if the sum of price elasticities of demand for exports and imports is:
ALess than one (|Ex + Em| < 1)
BEqual to zero
CEqual to infinity
DGreater than one (|Ex + Em| > 1)
The Basel Accords (Basel I, II, III) established by the Bank for International Settlements primarily set global standards for:
ABank capital adequacy and risk management
BExchange rate pegs
CForeign aid allocation
DGovernment tax rates