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Economics Mcqs

Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The accounting profit at Naila’s pottery factory is ?

Average And Total Cost, Economics Mcqs /
Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The accounting profit at Naila’s pottery factory is ?

A. Rs30,000
B. Rs35,000
C. Rs75,000
D. Rs70,000

Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The accounting profit at Naila’s pottery factory is ? Read More »

Average And Total Cost, Economics Mcqs

U.S total official development assistance to developing countries is ?

Aid and Foreign Investment, Balance of Payments, Economics Mcqs /
U.S total official development assistance to develog countries is ?

A. lowest among the OECD countries
B. higher currently than it was in the 1960s and 1970s
C. is equivalent to Holland’s aid
D. None of the above statements is true

U.S total official development assistance to developing countries is ? Read More »

Aid and Foreign Investment, Balance of Payments, Economics Mcqs

For Harvard’s Dani Rodrik Globalization involves ?

Aid and Foreign Investment, Balance of Payments, Economics Mcqs /
For Harvard’s Dani Rodrik Globalization involves ?

A. decreasing autonomy of the nation-state involves
B. the increasing international integration of markets for goods services and capital
C. changes of a traditional culture of a country to a western culture
D. giving aid to poor countries to improve their economy politics and social status

For Harvard’s Dani Rodrik Globalization involves ? Read More »

Aid and Foreign Investment, Balance of Payments, Economics Mcqs

The U.S real food aid, as well as food reserves dropped from the 1960s to the 1980s partly because ?

Aid and Foreign Investment, Balance of Payments, Economics Mcqs /
The U.S real food aid, as well as food reserves dropped from the 1960s to the 1980s partly because ?

A. the transportation and storage cost increased tremendously
B. proponents of basic-needs attainment opposed food-aid
C. U.S farm interests wanted to reduce surplus grain stocks
D. agricultural production suffered excessively due to weather changes

The U.S real food aid, as well as food reserves dropped from the 1960s to the 1980s partly because ? Read More »

Aid and Foreign Investment, Balance of Payments, Economics Mcqs

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

Aid and Foreign Investment, Balance of Payments, Economics Mcqs /
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

Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flows from poor to rich countries by ? Read More »

Aid and Foreign Investment, Balance of Payments, Economics Mcqs

Some economists and third-world policy makers criticize MNCs arguing that they have a negative effect on the developing country because they ?

Aid and Foreign Investment, Balance of Payments, Economics Mcqs /
Some economists and third-world policy makers criticize MNCs arguing that they have a negative effect on the develog 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 company
A. I and II only
B. III and IV only
C. I, II and III only
D. I, II, III and IV

Some economists and third-world policy makers criticize MNCs arguing that they have a negative effect on the developing country because they ? Read More »

Aid and Foreign Investment, Balance of Payments, Economics Mcqs

MNCs can help the developing country to ?

Aid and Foreign Investment, Balance of Payments, Economics Mcqs /
MNCs can help the develog country to ?

I- Finance a savings gap or balance of payments deficit
II- Obtain foreign technology by adapting existing processes
III- Generate appropriate technology by adapting existing processes
IV- Employ domestic labor, especially in skilled jobs
A. I and II only
B. III and IV only
C. I, II and III only
D. I, II, III and IV

MNCs can help the developing country to ? Read More »

Aid and Foreign Investment, Balance of Payments, Economics Mcqs

The balance on current account ?

Aid and Foreign Investment, Balance of Payments, Economics Mcqs /
The balance on current account ?

I- equals the absolute value of the balance on capital account
II- is financed by savings
III- is net grants minus remittances
IV- includes goods services and unilateral transfers
A. I and II only
B. II and III only
C. I and IV only
D. None of the above

The balance on current account ? Read More »

Aid and Foreign Investment, Balance of Payments, Economics Mcqs