All MCQs

A change in demographic pattern of many Asia economies (with the falling A change in demographic pattern of many Asia economies {with the falling birth rate with a rise in aging population} is of economic concern as it Select one: C} a. Will increase the dependency ratio and result in greater employment. {3' b. Will affect the poverty level in the country. Will affect the government's budget with a prospect of a growing surplus. C} d. Suggest lower level of future consumption and investment level in the country and slow down economic growth. ERP and NRP Suppose that the tariff on shirts is sass while the tariff on the cloth used to make the shirts is also 26% and there is no tariff on the other inputs needed to produce cloth. The tariff on cloth is now.r reduced to THEE. Which of the following is FALSE ? Select one: C} a. The nominal rate of protection on shirts is unchanged {3' b. The effective rate of protection on cloth is reduced {3' c. The nominal rate of protection on cloth is reduced {3' d. The effective rate of protection on shirts is unchanged The causes of the ssian Financial crisis in 199? include the following except The causes of the hsian Financial crisis in 199? include the following except Select one: D a. adopting too much reforms in the nancial sector resulting in huge capital ight. D b. adopting a xecl exchange rate regime. C} c. sia economies growing too fast. (3 a. t lack of regulation in the banking sector. The Ethiopia national statistics department released news about the surge of The Ethiopia national statistics department released news about the surge of US$9 billion of foreign funds in its property market and a $32 billion new plant built in its latest industrial park by an Multi National Company. At the same time. she is receiving foreign aids of $1billion by the World Bank to develop the education sector. This suggests Select one: C} a. the recorded level of FDI inow is US$51 bn. C} b. the recorded level of FDI inow is US$32b. C} c. the recorded level of FDI inow is US$42bn. C} d. the recorded level of net capital ow is US$9b. The gradual economic reforms in China from its earlyr stage on the primaryr The gradual economic reforms in China from its earljlr stage on the primaryr sector to trade liberalisation, resulting in China to experience Select one: C} a. t high economic growth with continuous trade competitiveness. C} b. r high economic growth rate accompanied by high consumption rate. {3' c. r high economic growth rate accompanied by high savings rate. {3' d. r high economic growth rate with improvements in income inequality. The Ice}.' challenges to China economyr include The key challenges to lEhina economyr include Select one: C} a. The declining birth rates and savings rate. C} b. The widening of income inequalityr and increase in urban poverty. 0 c. The rising labour cost. putting a threat to its export competitiveness. C} d. All the given options A Ice};r difference between the growth strategies of developed western economies... A key,r difference between the growth strategies of developed western economies and those in East Asia includes Select one: C} a. The East Asia economies pegged their currencies to the US Dollars C} b. East Asia economies implicitlyr adopt Confucianism where workers are willing to work hard and maintain a common goal for nation building C} c. The East Asia economies only.f adopt export oriented growth strategies {3' d. East Asia economies fullv depend on foreign aid for its economic development During the rst twentyfive years after World War II. successful During the rst twenty-five years after World War II, successful industrialization occurred in Korea and Taiwan where both economies shared similar development paths where both economies Select one: C} a. receive large foreign aid from Japan. 0 b. initiallv developed the labourintensive industries in the primaryI sector then switched to the more capital intensive industries. {3' c. has a sizable domestic market thus production concentrates on meeting domestic needs. {3' d. adopt high protectionism on both its exporting and importing sectors. India optimistic economic future is supported by the following phenomenon except India optimistic economic future is supported by the following phenomenon except Select one: C} a. Greater trade integration with participation in SAARC and ASEAN. C} b. Growth in its middle income population. {3 c. A rise in outsourcing jobs from the developed regions {3 d. Adopting policies centred on supporting import substituting industries and state owned industries. India service sector India's economy depends on the service sector where this sector Select one: D a. Can provide complementary service to the technology driven manufacturing industry and growing demand of the interconnected world. {3 b. Is not affected by the level of FDI in her country. {3 c. Can generate enough employment to her large population base. D d. Is less regulated by the government. |Dne of the challenges. to regional trade integration includes |Dne of the challenges to regional trade integration includes Select one: {3a. Dc. The noodle bowl effect where the country's various free trade agreement with different other countries is entangled, reducing the net gain of globalisation The Dutch Disease where the country is engaged in developing its energy source industry The noodle bowl effect where rms in different sectors lobby for different tariff rates The Dependency theory where the rich developed economies exploit the poorer economies from their cheaper primary inputs Poverty is a key economic concern as Which of the following best describe the effects of changes in a country's poverty level? Select one: C} a. A high poverty level can attract more FDI inflows as part offoreign aid {3' b. A rise in poverty rate suggest more individuals are earning below USELQU per day and that affects long term GDP and growth {3' c. h fall in povertyr rate suggests more people earn less than USD1.9D per day and that boost consumption level in the country 0 d. A rise in poverty level suggest government can devote less resources to improve the basic living standards of individuals