Economics for Non-Majors Question Bank
Course Introduction
Economics for Non-Majors introduces fundamental economic concepts and principles to students from diverse fields of study. The course covers the basics of microeconomics and macroeconomics, emphasizing real-world applications and the relevance of economic reasoning in everyday life. Topics include supply and demand, market structures, fiscal and monetary policy, international trade, and the impact of economic decisions on individuals and society. Through accessible lectures, case studies, and practical examples, students develop a solid understanding of how economic theories inform business, government, and personal decision-making.
Recommended Textbook Survey of Economics 8th Edition by Irvin B. Tucker
Available Study Resources on Quizplus
27 Chapters
4541 Verified Questions
4541 Flashcards
Source URL: https://quizplus.com/study-set/2072
Page 2
Chapter 1: Introducing the Economic Way of Thinking
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/41221
Sample Questions
Q1) An economic model is useful only if it:
A) contains no positive statements.
B) captures all the complexities of reality.
C) yields accurate predictions.
D) has both macro- and microeconomic applications.
Answer: C
Q2) Which of the following would be of particular interest to a microeconomist?
A) The price of fruit the typical household consumes.
B) The nation's inflation rate.
C) The nation's rate of unemployment.
D) The budget of the national government.
E) The growth of the economy.
Answer: A
Q3) Financial capital by itself is not a factor of production; instead it is only a paper claim on economic capital.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 1: A: Appendix: Applying Graphs to Economics
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/41219
Sample Questions
Q1) An inverse relationship exists when:
A) there is no association between two variables.
B) one variable increases and there is no change in the other variable.
C) one variable increases and the other variable increases.
D) one variable increases and the other variable decreases.
Answer: D
Q2) In Exhibit 1A-1,the slope of straight line AB is:
A) positive.
B) zero.
C) negative.
D) variable.
Answer: A
Q3) Measured between two points on a curve,the ratio of the change in the variable on the vertical axis to the change in the variable on the horizontal axis is the: A) axis.
B) slope.
C) dependent curve.
D) independent curve.
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 2: Production Possibilities,Opportunity Cost,and Economic Growth
Available Study Resources on Quizplus for this Chatper
200 Verified Questions
200 Flashcards
Source URL: https://quizplus.com/quiz/41218
Sample Questions
Q1) Of all the points on the production possibilities curve,only one point represents an efficient point.
A)True
B)False
Answer: False
Q2) Just before class,Jim tells Stuart,"Stuart,you shouldn't skip class today because you have paid tuition to enroll in the class." Stuart ignores Jim's advice,and instead makes the decision of whether to attend based on the importance to his grade that he feels he'd be missing that day in class relative to his value of the extra time he could have to finish the video game he is playing.To an economist,Stuart is:
A) using marginal analysis.
B) ignoring the total value of attending class.
C) ignoring the concept of opportunity cost.
D) irresponsible.
Answer: A
Q3) Opportunity cost is the best alternative sacrificed for a chosen alternative.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 3: Part 1: Market Demand and Supply
Available Study Resources on Quizplus for this Chatper
250 Verified Questions
250 Flashcards
Source URL: https://quizplus.com/quiz/41222
Sample Questions
Q1) Assuming that dry cleaning is a normal good,an increase in consumer income,other things being equal,will:
A) increase the demand for dry cleaning.
B) decrease the demand for dry cleaning.
C) increase the quantity demanded of dry cleaning.
D) decrease the quantity of dry cleaning demanded.
Q2) Demand for a good will always rise when:
A) the price of a complementary good falls.
B) the price of a substitute good falls.
C) tastes change.
D) incomes decrease.
E) the price of the good falls.
Q3) We can find the market demand for pears by:
A) adding up all the prices people are willing to pay for pears.
B) multiplying the number of people times the price of pears.
C) adding up the number of pears that producers are willing to sell.
D) multiplying the number of pears by the price of pears.
E) adding up all the individual demand curves for pears.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: Part 2: Market Demand and Supply
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/41216
Sample Questions
Q1) The most important characteristic of the equilibrium price is that it:
A) guarantees that producers earn profit.
B) clears the market.
C) increases the quantity demanded.
D) decreases the quantity demanded.
Q2) If a shortage exists in a market then:
A) the price is below equilibrium.
B) the quantity demanded exceeds the quantity supplied.
C) the price will rise in the near future.
D) all of the above.
Q3) Which of the graphs in Exhibit 3-13 illustrates a surplus exists at the indicated market price?
A) Diagram A.
B) Diagram B.
C) Diagram C.
D) Diagrams A and C.
Q4) Higher milk prices reduce the demand for milk.
A)True
B)False
Q5) Discuss how a market reaches equilibrium.How is it expressed graphically?
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Markets in Action
Available Study Resources on Quizplus for this Chatper
250 Verified Questions
250 Flashcards
Source URL: https://quizplus.com/quiz/41223
Sample Questions
Q1) Negative externalities result in unfair,excessively high prices.
A)True
B)False
Q2) An economic justification for government providing public goods and services is that many people can benefit regardless of whether they pay or not.
A)True
B)False
Q3) What are market failures? Discuss examples of market failures.What can government do to improve the results of market failures?
Q4) A price floor is a price set below equilibrium by government and it creates a shortage.
A)True
B)False
Q5) Price ceilings set below the equilibrium create:
A) externalities.
B) unemployment.
C) shortages.
D) surpluses.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 5: Price Elasticity of Demand
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/41224
Sample Questions
Q1) Since it is always a negative number,economists use the convention of taking the absolute value of:
A) income elasticity of demand.
B) cross price elasticity of demand.
C) price elasticity of supply.
D) price elasticity of demand.
E) any elasticity calculation.
Q2) Demand sensitivity depends on all of the following except:
A) how low is the price of the good.
B) the sensitivity of firms' output to changes in its price.
C) the consumer's income.
D) the availability and closeness of substitutes.
E) the amount of time a consumer has to adjust to price changes.
Q3) What happens to total revenue given a price increase and demand is inelastic? Why?
Q4) If the price elasticity of demand coefficient equals 2,this means a 10 percent increase in price will result in a 20 percent decrease in the quantity demanded.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 6: Production Costs
Available Study Resources on Quizplus for this Chatper
249 Verified Questions
249 Flashcards
Source URL: https://quizplus.com/quiz/41225
Sample Questions
Q1) By filling in the blanks in Exhibit 6-12,the marginal cost of the third pizza is shown to be equal to:
A) $10.
B) $11.
C) $12.
D) $13.
E) $14.
Q2) By filling in the blanks in Exhibit 6-8,the marginal cost of the fourth pizza is shown to be equal to:
A) $10.
B) $15.
C) $17.
D) $23.
E) $40.
Q3) Long-run economies of scale exist over the range of output for which the long-run average cost curve is:
A) constant.
B) falling.
C) rising.
D) does not exist.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 7: Perfect Competition
Available Study Resources on Quizplus for this Chatper
222 Verified Questions
222 Flashcards
Source URL: https://quizplus.com/quiz/41226
Sample Questions
Q1) As shown in Exhibit 7-12,the price that will yield zero economic profit is:
A) OA.
B) OB.
C) OC.
D) OD.
Q2) Total profit can be calculated by:
A)c and e.
B)subtracting total revenue from total costs.
C)subtracting total costs from total revenue.
D)finding the product of the difference between average profit and average total cost and the quantity produced.
E)quantity produced times the difference between average revenue and average total cost.
Q3) As shown in Exhibit 7-18,the perfectly competitive firm is in long-run equilibrium at an output of:
Q4) Which of the following is characteristic of a perfectly competitive market?
A) There is free entry into and exit from the market.
B) Individual firms can exert a perceptible influence on the market price.
C) The firms in the market produce differentiated products.
D) All of the above are true.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 8: Monopoly
Available Study Resources on Quizplus for this Chatper
170 Verified Questions
170 Flashcards
Source URL: https://quizplus.com/quiz/41227
Sample Questions
Q1) A perfectly competitive firm is a price taker,but a monopoly is a price maker.
A)True
B)False
Q2) What is the name of the monopolist having a declining long-run average cost throughout the market?
A) Monopolistic competition.
B) Monopoly by legal barrier.
C) Natural monopoly.
D) Contrived monopoly.
Q3) The act of buying a commodity in one market at a lower price and selling it in another market at a higher price is known as:
A) buying long.
B) selling short.
C) a tariff.
D) arbitrage.
Q4) Which barrier to entry results in the creation of a natural monopoly?
A) Legal barriers like government franchises.
B) Economies of scale.
C) Ownership of a vital resource.
D) Patents and copyrights.
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Monopolistic Competition and Oligopoly
Available Study Resources on Quizplus for this Chatper
161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/41228
Sample Questions
Q1) The automobile,steel,and oil markets are all examples of:
A) perfectly competitive markets.
B) monopolies.
C) monopolistically competitive markets.
D) oligopolies.
Q2) Oligopolies have few sellers and difficult entry.
A)True
B)False
Q3) Which of the following explains how a cartel with 100 percent control might raise price to monopoly-like levels?
A) By setting a group output level equal to a profit-maximizing monopolist, and then assigning binding quota shares to cartel members.
B) By setting an official price that members can secretly undercut.
C) By forbidding price competition, but allowing non-cooperative rivalry in output levels.
D) None of the above.
Q4) Compare and contrast the four market models in terms of the profit-maximizing output level for each,the shut-down rule for each,the probability of long-run economic profits being earned,and their social desirability.
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 10: Labor Markets and Income Distribution
Available Study Resources on Quizplus for this Chatper
180 Verified Questions
180 Flashcards
Source URL: https://quizplus.com/quiz/41229
Sample Questions
Q1) One reason the supply of carpenters is greater than the supply of physicians is because:
A) carpenters demand less income.
B) physicians do not belong to a union.
C) of differences in human capital.
D) carpenters belong to unions.
Q2) Of the following demographic groups,which has the lowest poverty rate in the U.S.?
A) Families headed by a female with no adult male present.
B) Families in which the "head of the household" has not attained a high-school education.
C) Families headed by a male with no adult female present.
D) Families in which the "head of the household" has attained at least a bachelor's degree from a college or university.
Q3) Dividing the change in total revenue by the change in labor gives:
A) marginal product of labor.
B) marginal revenue product of labor.
C) the price of the output.
D) demand for the output.
E) economic efficiency.
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 11: Gross Domestic Product
Available Study Resources on Quizplus for this Chatper
202 Verified Questions
202 Flashcards
Source URL: https://quizplus.com/quiz/41230
Sample Questions
Q1) New residential housing is counted in GDP as a(n):
A) durable consumption good.
B) household durable good.
C) investment good.
D) inventory expansion.
E) long-term durable good.
Q2) Gross domestic product is the sum of the purchase price multiplied by the quantity of:
A) goods and services exchanged during the period.
B) final goods and services produced domestically during the period.
C) goods and services produced domestically during the period minus the depreciation of productive assets.
D) final goods and services plus intermediate goods produced domestically during the period.
Q3) Increased production,but not increased inflation,will result in higher:
A) nominal GDP.
B) money GDP.
C) real GDP.
D) current dollar GDP.
Q4) Discuss how economists calculate NI,PI and DI.
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Business Cycles and Unemployment
Available Study Resources on Quizplus for this Chatper
194 Verified Questions
194 Flashcards
Source URL: https://quizplus.com/quiz/41231
Sample Questions
Q1) Unemployment that occurs from fundamental technological changes in the production,or from the substitution of new goods for customary ones,is known as: A) underemployment.
B) seasonal unemployment.
C) frictional unemployment.
D) structural unemployment.
E) cyclical unemployment.
Q2) The phase of the business cycle that follows a recession is known as the: A) peak.
B) recession.
C) recovery.
D) trough.
Q3) The natural rate of unemployment occurs if there is no: A) unemployment.
B) frictional unemployment.
C) structural unemployment.
D) cyclical unemployment.
Q4) The duration of unemployment is not a leading indicator. A)True
B)False
Page 16
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Inflation
Available Study Resources on Quizplus for this Chatper
127 Verified Questions
127 Flashcards
Source URL: https://quizplus.com/quiz/41232
Sample Questions
Q1) Inflation is measured by an increase in:
A) homes, autos and basic resources.
B) prices of all products in the economy.
C) the consumer price index (CPI).
D) none of the above.
Q2) People with fixed incomes fare best in an inflationary period.
A)True
B)False
Q3) According to the Bureau of Labor Statistics' survey,which category represents the largest expense for the typical urban family?
A) Housing.
B) Food and beverages.
C) Transportation.
D) Medical care.
Q4) One way the consumer price index (CPI)differs from the GDP chain price index is that it:
A) includes only purchases of items bought by typical urban consumers.
B) uses only current year quantities.
C) is based on all final goods and services.
D) includes only services.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 14: Aggregate Demand and Supply
Available Study Resources on Quizplus for this Chatper
188 Verified Questions
188 Flashcards
Source URL: https://quizplus.com/quiz/41233
Sample Questions
Q1) The aggregate supply curve is defined as:
A) net national product.
B) the sum of wages, rent, interest, and profits.
C) the real GDP produced at different price levels.
D) the total dollar value of household expenditures.
Q2) According to classical theory,if the aggregate demand curve decreased and the economy experienced unemployment,then:
A) the economy would remain in this condition indefinitely.
B) the government must increase spending to restore full employment.
C) prices and wages would fall quickly to restore full employment.
D) the supply of money would increase until the economy returned to full employment.
Q3) As the aggregate demand curve shifts from AD to AD in Exhibit 14-4,the economy experiences:
A) cost-push inflation.
B) demand-pull inflation.
C) wage-push inflation.
D) hyperinflation.
Q4) How are demand-pull and cost-push inflation reflected in terms of the AD-AS model?
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 14: A: Appendix: The Self-Correcting Aggregate
Demand and Supply Model
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/41220
Sample Questions
Q1) Based on Exhibit 14A-6,when the aggregate demand curve is in the position AD ,the economy's position of long-run equilibrium corresponds to point:
A) E .
B) E .
C) E .
D) E or E .
Q2) In an economy where nominal incomes adjust equally to changes in the price level,we would expect the long-run aggregate supply curve to be:
A) vertical.
B) horizontal.
C) unit elastic.
D) negatively sloped.
E) positively sloped.
Q3) The long-run aggregate supply curve (LRAS)is represented by a(n)____ curve with respect to the CPI.
A) horizontal
B) upward-sloping
C) downward-sloping
D) vertical
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 15: Fiscal Policy
Available Study Resources on Quizplus for this Chatper
201 Verified Questions
201 Flashcards
Source URL: https://quizplus.com/quiz/41234
Sample Questions
Q1) According to Keynesian economics,what impact would a balanced budget amendment to our constitution have on our national economy?
Q2) "Tax cuts,by providing incentives to work,save,and invest,will raise employment and lower the price level." This argument is made by the:
A) Keynesian economists.
B) supply-side economists.
C) classical economists.
D) monetarists.
Q3) If the marginal propensity to save (MPS)is 0.25,the value of the spending multiplier is:
A) 1.
B) 2.
C) 4.
D) 9.
Q4) Fiscal policy is concerned with:
A) encouraging businesses to invest.
B) regulation of net exports.
C) changes in government spending and/or tax revenues.
D) expanding and contracting the money supply.
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 16: The Public Sector
Available Study Resources on Quizplus for this Chatper
127 Verified Questions
127 Flashcards
Source URL: https://quizplus.com/quiz/41235
Sample Questions
Q1) How does total taxes as a percentage of GDP in the United States compare to those of Western European countries,such as the United Kingdom,Germany,and Sweden?
A) U.S. taxation is smaller.
B) U.S. taxation is about the same.
C) U.S. taxation is slightly larger.
D) U.S. taxation is substantially larger.
Q2) Jan has an income of $30,000 and pays $4,500 in taxes.When Jan's income rises to $40,000,her tax bill rises to $6,500.What is Jan's marginal tax rate?
A) 5 percent.
B) 15 percent.
C) 16.25 percent.
D) 20 percent.
Q3) A tax is structured so that the tax as a percentage of income declines as the level of income increases is called a(n):
A) flat tax.
B) regressive tax.
C) progressive tax.
D) excise tax.
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 17: Federal Deficits,Surpluses,and the National Debt
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/41236
Sample Questions
Q1) An increase in fiscal deficit spending financed by borrowing will not affect the national debt but decrease interest rates.
A)True
B)False
Q2) The sum of past federal budget deficits is the:
A) GDP debt.
B) trade debt plus GDP.
C) national debt.
D) Congressional debt.
Q3) What is the difference between the federal budget deficit and the national debt?
A) The budget deficit is the amount by which expenditures exceed revenues in a particular year, while the national debt is the cumulative effect of all past budget deficits and surpluses.
B) The budget deficit is the cumulative effect of all prior national debts.
C) The national debt includes all outstanding bonds, while the budget deficit excludes bonds held by government agencies.
D) This is a trick question because there is no difference between the budget deficit and the national debt.
Q4) Can the U.S.federal government go broke as a result of a large national debt?
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 18: Money and the Federal Reserve System
Available Study Resources on Quizplus for this Chatper
154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/41237
Sample Questions
Q1) Decisions to buy or sell securities at the Fed are made by the:
A) Congress.
B) Federal Open Market Committee.
C) Federal Deposit Insurance Corporation.
D) President's Council of Economic Advisors.
Q2) In its function of controlling the money supply,the Fed does which one of the following?
A) Controls the money supply.
B) Clears checks.
C) Regulates banks.
D) Holds gold belonging to foreign governments.
E) All of the above are true.
Q3) Describe the functions of the Federal Reserve System.
Q4) Which of the following statements is true?
A) Money must be relatively "scarce" if it is to have value.
B) Money must be divisible and portable.
C) M1 is the narrowest definition of money.
D) All of the above.
Q5) Who runs the Federal Reserve System? Describe the organizational structure of the Fed.
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 19: Money Creation
Available Study Resources on Quizplus for this Chatper
246 Verified Questions
246 Flashcards
Source URL: https://quizplus.com/quiz/41238
Sample Questions
Q1) Which of the following does not appear on the asset side of a bank's balance sheet?
A) Required reserves.
B) Checkable deposits.
C) Loans.
D) Excess reserves.
Q2) In Exhibit 19-2,if Springfield National's customers write checks for $200 and the required reserve ratio is 20 percent,then its required reserves fall to:
A) $0.
B) $40.
C) $160.
D) $460.
E) $260.
Q3) In Exhibit 19-4,the bank could make:
A) $1,000 in new loans.
B) $4,000 in new loans.
C) $16,000 in new loans.
D) $20,000 in new loans.
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 20: Monetary Policy
Available Study Resources on Quizplus for this Chatper
214 Verified Questions
214 Flashcards
Source URL: https://quizplus.com/quiz/41239
Sample Questions
Q1) Other things being equal,the quantity of money that people wish to hold in currency and their checking accounts can be expected to:
A) increase as the interest rate increases.
B) decrease as the interest rate increases.
C) decrease as real GDP increases.
D) none of the above.
Q2) The Monetarists advocate the monetary rule in order to stabilize the business cycle which states that the money supply should be increased by a constant rate year after year.
A)True
B)False
Q3) Monetarists argue that fiscal policy is ineffective because:
A) the velocity of money is predictable.
B) the crowding-out effect reduces investment.
C) prices and wages are sticky in the short run.
D) it causes the value of the dollar to depreciate.
Q4) The transmission mechanism is the effect of changes in monetary policy on the stock market.
A)True
B)False
25
To view all questions and flashcards with answers, click on the resource link above.
Chapter
Self-Correcting Aggregate Demand and Supply Model
Available Study Resources on Quizplus for this Chatper
31 Verified Questions
31 Flashcards
Source URL: https://quizplus.com/quiz/41217
Sample Questions
Q1) As shown in Exhibit 20A-3,assume the marginal propensity to consume MPC equals 0.75.Using discretionary fiscal policy,federal government spending should be ____ in order to restore the economy from E to full employment.
A) increased by $1 trillion
B) increased by $2 trillion
C) decreased by $2 trillion
D) increased by $.50 trillion
E) increased by $.80 trillion
Q2) Assuming the economy is in a recession,Keynesian economists predict that:
A) wages will remain fixed.
B) monetary policy will sell government securities.
C) higher wages will shift the short-run aggregate supply curve leftward.
D) lower wages will shift the short-run aggregate supply curve rightward.
Q3) Classical theory advocates ____ policy and Keynesian theory advocates ____ policy.
A) nonintervention; intervention
B) active; nonstabilization
C) stabilization; fixed wage
D) fixed rule; passive
26
To view all questions and flashcards with answers, click on the resource link above.
Chapter 21: International Trade and Finance
Available Study Resources on Quizplus for this Chatper
246 Verified Questions
246 Flashcards
Source URL: https://quizplus.com/quiz/41240
Sample Questions
Q1) Following the principle of comparative advantage,specialization:
A) permits greater levels of total production than would be attained without it.
B) increases the dependency of countries on trade.
C) both of the above.
D) neither of the above.
Q2) As shown in Exhibit 21-2,in Mexico,producing 1 additional ton of wheat costs:
A) 1/2 ton of cloth.
B) 2/3 ton of cloth.
C) 1 ton of cloth.
D) 1 1/2 tons of cloth.
Q3) A tariff has the effect of:
A) raising the price of the exported product.
B) increasing the demand for the exported product.
C) increasing the demand for the imported product.
D) increasing the supply of the imported product.
E) raising the price of the imported product.
Q4) Absolute advantage governs the potential for gains from trade.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 27
Chapter 22: Economies in Transition
Available Study Resources on Quizplus for this Chatper
104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/41241
Sample Questions
Q1) In a socialistic system,most economic decisions are made by:
A) firms.
B) consumers.
C) stockholders.
D) government planners.
Q2) Adam Smith's basic economic philosophy stated in The Wealth of Nations can be stated as:
A) laissez faire.
B) allow to act.
C) the least government is best.
D) all of the above.
Q3) Which of the following applies to a real-world socialistic economy?
A) Private ownership of all factors of production.
B) Government ownership of all factors of production.
C) Government ownership of most of the factors of production.
D) Lack of central planning.
Q4) A command system uses a group of planners or central authority to make basic economic decisions.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 28
Chapter 23: Growth and the Less-Developed Countries
Available Study Resources on Quizplus for this Chatper
116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/41242
Sample Questions
Q1) Which of the following is a characteristic of an LDC?
A) Capital flight.
B) Vicious circle of poverty.
C) Lack of entrepreneurs.
D) All of the above.
Q2) GDP per capita is about 10 times higher in industrially advanced countries (IACs)than in the poorer less-developed countries (LDCs).
A)True
B)False
Q3) Which of the following is a true statement?
A) The LDC classification is of the questionable accuracy.
B) GDP per capita ignores the degree of income distribution.
C) GDP per capita is affected by exchange rate changes.
D) GDP per capita does not account for the difference in the cost of living among nations.
E) All of the above are true.
Q4) Describe the vicious cycle of poverty.What are the consequences of this cycle?
Q5) According to the text,Singapore is classified as a less developed country (LDC).
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 29