Supply Policies, Comparative Advantages, Agriculture and Irrigation System of Pakistan and Average and Total Cost MCQs

1 - Aggregate demand includes only ?






consumer expenditure government expenditure and investment

2 - The length of a business cycle would be measured from ?






peak to peak

3 - An index of prices of all domestically produced goods in the economy is the ?






GDP deflator

4 - Macroeconomic theory that emphasized the theories of Keynes and de-emphasized the classical theory developed as the result of the failure of ?






The classical model to explain the prolonged existence of high unemployment during the Great Depression

5 - Macroeconomics is the branch of economics that deals with ?






the economy as a whole

6 - Interventionist policies to restore regional imbalance focus on ?






all of the above

7 - A way of helping depressed regions by having lower wages lower local taxes and lower unemployment benefit has been suggested as ?






market-orientated economists

8 - Privatization is the transfer of ?






government businesses to the private sector.

9 - Reaganomics was a radical shift in policy aimed at directly tackling ?






the supply side of the country

10 - According to supply-side economists, as tax rates are reduced, labor supply should increase. This implies that ?






the substitution effect of a wage change is greater than the income effect of a wage change

11 - Which of the following would be considered a supply-side policy ?






investment tax credits for businesses to encourage investment

12 - The success of regional and urban policies has been limited by ?






the low level of government grants and by the fact that some projects would have gone ahead anyway

13 - A way helping depressed regions by having wage subsidies lower business taxes and capital subsidies has been suggested as ?






interventionist policies.

14 - Which of the following statements supports deregulation of industries ?






All of the above

15 - New classical economists advocate reducing welfare payments to people who are unemployed or single parents. The economic reasoning used was that this would ?






reduce unemployment

16 - According to the Laffer curve, as tax rates increase tax revenue ?






initially increase and then decrease

17 - According to Supply-side economists. if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?






aggregate supply will increase will increase aggregate output will increase and the price level will decrease

18 - A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work, save and invest. These economists are?






Supply-side economics

19 - According to the factor price equalization theorem, the ________ factor should oppose free. trade policies in any given country?






scarce

20 - By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ?






The volume of trade to be less than when there are no transportation costs

21 - Advocates of industrial policy maintain that government should ?






grant subsidies to firms offering potential comparative advantage

22 - According to the Heckscher-Ohlin model ?






The gainers from trade outnumber the losers from trade

23 - In his empirical test of comparative advantage Wassily Leontief found that ?






None of the above

24 - The Heckshcer-Ohl assumes that are indentical between countries?






Both A and B

25 - One of the predictions of the Heckscher-Ohlin model is that ?






All of the above

26 - If tastes are identical between countries, then comparative advantage is determined by ?






supply condition only

27 - Industrial policies intended to foster comparative advantage for domestic industries could result in the implementation of ?






All of the above

28 - The product cycle theory of trade is essentially a ?






dynamic long run trade theory

29 - The Heckscher-Ohl in model rules out the classical model's basis for trade by assuming that _________ is (are) identical between countries?






technology

30 - Declining costs per unit of output results from international trade especially if ?






Economies of scale exist for producers

31 - Dynamic comparative advantage theory ?






helps explain why some nations use industrial policy to support potentially competitive new firms

32 - That the division of labor is limited by the size of the market best applies to which explanation of trade ?






Economies of scale theory

33 - _____ 1954 study of U.S trade patterns showed that U.S exports were labor-intensive compared with U.S imports, even though the United States was widely regarded as a relatively capital-abundant nation ?






Wassily Leontief's

34 - For the United States empirical studies indicate that over the past two hundred years the cost of international transportation relative to the value of U.S imports has ?






Decreased

35 - The trade model of the Swedish economies Heckscher and Ohlin maintains that ?






A country exports goods for which its resource endowments are most suited

36 - Which trade theory contends that a country that initially develops and exports a new product may eventually become an importer of it and may no longer manufacture the product ?






Product life cycle theory

37 - The factor endowment model of international trade was developed by ?






Eli Heckscher and Bertil Ohlin

38 - Interindustry trade can be explained by all of the following except ?






high per capita incomes in exporting countries

39 - A product will be traded only if the pre-trade price difference between the two countries ?






is greater than the cost of transporting it between them equals the cost of transporting it between them

40 - The factor endowment theory was pioneered by ?






Eli Heckscher and Bertil Ohlin

41 - Wassily Leontief's results can be interpreted as ?






evidence against the Heckscher-Ohl in model

42 - Leontief's result were considered paradoxical because the United Stated was believed to be ?






capital abundant relative to the rest of the world

43 - In his empirical tests, Wassily Leontief used an input-output table to ?






calculate the capital and labor required to produce $1 million of U.S exports and imports

44 - Wassily Leontief used an input output table in order to test the ?






Heckscher Ohl in theory of comparative advantage

45 - The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?






factor/resource

46 - By reducing the volume of trade transportation costs tend to ?






stop the process of product price equalization and factor price equalization before they are complete:

47 - The analyzes the income distribution effects of trade in the short run when resources are immobile among industries ?






specific factors theory

48 - The comparative advantage model of Ricardo was based on ?






interindustry specialization and trade

49 - According to the Heckscher-Ohlin model the source of comparative advantage is a country's ?






factor endowments

50 - Difference in environmental standards or other government regulations among nations ?






can affect production costs and thus alter comparative advantages and trade patterns

51 - Intra-industry trade theory ?






Explains why the United States might export and import differentiated versions of the same product such as different types of autos

52 - Should international transportation costs decrease the effect on international trade would include a (an) ?






increase in the volume of trade

53 - According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?






similar per-capita incomes

54 - According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ?






Export products that are land-intensive

55 - The theory of overlapping demand predicts that trade in manufactured goods is unimportant for countries with very different ?






Per-capita income levels

56 - Boeing aircraft company was able to over its production costs of the first – jumbo jetll in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates ?






How economies of scale make possible a larger variety of products in international trade

57 - The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries ?






Relative abundance of various resources

58 - According to the next basic needs include ?






adequate nutrition, primary education health sanitation water supply and housing

59 - Longevity is proxy for ________ in the Human Development Index?






health and nutrition

60 - The Physical Quality of Life Index (PQLI) combines three indicators They are ?






infant mortality life expectancy and adult literacy rate

61 - The University of Pennsylvania researchers Summers and Heston compute the price level of GDP as the ratio of purchasing power parity (PPP) exchange rate to the actual exchange rate where ?






both exchange rates are measured s the domestic currency price of the US-dollar

62 - The Paasche index uses _________ weights?






current-year

63 - OPEC is the ?






Organization of Petroleum Exporting Country

64 - One classification of development levels used by the World Bank divides countries into three group on the basis of GNP per capita They are ?






Low income , middle income and high income

65 - Which of the following are low income countries income country ?






Mexico

66 - Which of the following countries is not a low-income country ?






Singapore

67 - The formula to calculate economic growth from 2001 to 2002 is given by ?






[(GDP2002 – GDP2001)/GDP2001]100

68 - If GNP per capita at constant prices for Ghana is US$360 and US$364 in 1996 and 1997 respectively, The real economic growth from 1996 to 1997 is ?






0.0111

69 - If GNP for Vatican City the smallest country in the world is 200 million euros in year 2011 and its population is 890 GNP per capita is_____________?






200,000,000/890

70 - Which of the following countries is not a low income country ?






Malaysia

71 - Economic growth from current year (c) to previous year (p) is given by ?






[(GDPc – GDPp)/ DGPp]100

72 - If GDP for Barbados is $260 million in 2011 and its population is 260,000 GDP per capita is ?






1000

73 - The formula to calculate Passche price index is (o is the base year and n is the given year) ?






P = ΣPnqn/Σpoqn

74 - Imitating labor standards from rich countries in LDCs may increase ?






poverty

75 - Which of the following statement is not true about LDCs ?






Setting up western labor standard and minimum wages in labor-abundant LDCs is sensible

76 - Which of the following is not one of the Newly Industrialized Countries (NICs) ?






Japan

77 - The Human Development Index (HDI) summarizes a great deal of social performances in a single composite index combining ?






longevity, education and living standard

78 - The three measure of welfare indicators above comprise the ?






Physical Quality of Life Index

79 - Infant mortality ?






is defined as the annual number of deaths of infant under 1 year old per 1,000 live births

80 - PPP is ?






a theory that tells us that exchanged rates between currencies are in equilibrium when their purchasing power is the same in both countries

81 - Which of the following is not a problem in comparing developed and developing countries GNP ?






GNP is understated for developed countries, since a number of items included in their national incomes are intermediate goods

82 - The formula for the Laspeyres price index is (o is the base year and n is the given year) ?






P = ∑Pnqo/∑poqo

83 - The World Bank's GNP per capita classification for low income middle income and high income countries respectively is ?






less than $900, $900-$9000 and more than $9000

84 - All of the following are low income countries except ?






United Arab Emirates

85 - All of the following are high income countries except ?






Hungary

86 - According to chapter 2 in the text which of the following is true ?






A few poor countries like South Korea and Malaysia in the 1950s grew much more rapidly than some higher-income countries like Uruguay and New Zealand

87 - IF GDP for Maldivies is $435 million in 2012 and the GDP per capita is $1576.087 the population of the country must be ?






276000

88 - If GDP for Palau a small country near southeast of the Philippines is $130 million in 2012 and its population is 20,000 GDP per capita is ?






6500

89 - Economic development refers to ?






economic growth plus changes in (c) output distribution and economic structure

90 - All of the following are high income countries except ?






South Africa

91 - IF GNP per capita at constant prices for Liechtenstein a microstate of 29,000 people located on the Rhine River between Switzerland and Austri is US$555 and US$560 in 2011 and 2012 respectively, the real economic growth from 2011 to 2012 is ?






0.00901

92 - Tuvalu is composed of 9 coral atolls along a 360-mile chain in Polynesia They gained independence in 1978 The former Ellice Island are home to 9,700 people if GNP of Tuvalu is $300 million in 2005 GNP per capital is ?






300 000 000 / 9700

93 - Lespeyres type indexes use weights from_____________?






future year

94 - Pakistan is the __________ largest rice Producer country in the world?






Eight

95 - Pakistan is the _________ largest Date Palm Producer country in the world?






Sixth

96 - Pakistan is the ___________ largest Cotton Producer country in the world?






Fourth

97 - Pakistan is the ________ largest Apricot Producer country in the world ?






Fourth

98 - ________ is the most important staple food of Pakistan?






Wheat

99 - Which province of Pakistan is the largest bajra producing province ?






Punjab

100 - Which province of Pakistan is the largest tobacco producing province ?






Punjab

101 - Which province of Pakistan is the largest rice producing province ?






Punjab

102 - Cash crops cover nearly _______ of the cropped areas?






0.25

103 - Nearly _______ of land is cultivated through tube-wells ponds and rain water?






0.25

104 - Total land area of Khyber Pakhtunkhwa comprises of 10.2 mha (25.20 million acres), out of which nearly ________ are cultivated?






10% or 1.93 mha

105 - Which soil is best suited for deep rooted crops ?






Black soil

106 - Kharif crop includes ?






All of them

107 - Rasul headworks was constructed on the river ?






Jhelum

108 - Which one of the following is the largest sector of Pakistan's economy ?






Agriculture

109 - Malakand Dargai Project started its operation in ?






1938

110 - Nara Canal is located in the Province of _______?






Sindh

111 - Trimmu Sindhnai link canal links the Chenab with ?






Ravi

112 - The Indus Water Treaty was mediated by ?






World Bank

113 - Black Volcanic soil and tropical climate is most suitable without excess rainfall for which crop ?






Cotton

114 - What is the total length of Seven canals built under Indus Water Treaty ?






621 KM

115 - The Upper Swat Canal starts from ?






Malakand

116 - Guddu Barrage was constructed on ?






River Indus

117 - Which crops are sown in Rabi Season ?






cotton

118 - Kharif crop includes ?






All of them

119 - Which are Pakistan's major seasons for agriculture crops ?






Kharif and Rabi

120 - How many reclamation schemes has been completed by the government?






80

121 - Which one is the dominant source of foreign exchange earning ?






Agriculture

122 - Investment in agriculture sector is Rs ?






45.9 billion

123 - The Triple Project was designed to carry surplus water from the jhelunito chenab and from chenab to the ?






Ravi

124 - Which one of the following is the largest sector of Pakistan's economy ?






Agriculture

125 - Annual growth rate of agriculture for the year 2010-11 was ?






0.05

126 - How much of the total export earning is through agriculture ?






0.6

127 - How much is contributed by agriculture to GNP of the country ?






0.209

128 - The total land area of Sindh is 14.1 mha (or 34.84 million acres) out of which _______ are cultivated?






39 % or 5.45 mha

129 - Agriculture employs about ____ of the total labor-force?






0.45

130 - How much of the total area is cultivated in Pakistan ?






0.25

131 - How much of the total export earning is through agriculture ?






0.65

132 - Nomboli is formulated for the control of ?






household pest

133 - What Pheromones are environmentally friendly and safe for another useful insect's end ?






predators

134 - What was the total inflow of irrigation water in 2001-2 ?






91 MAF

135 - What is the share of local edible oil to the national need ?






0.29

136 - The annual growth rate of edible oil is ?






0.1

137 - Which is/are major oil seeds crop(s) of the country ?






All of these

138 - How many persons in rural areas are engaged in livestock raising ?






30-35 million

139 - One third of the nation's energy need is fulfilled by ?






forest sector

140 - In Northern Areas total forest area is ?






0.66 million hectares

141 - Forest area of Baluchistan is ?






0.33 million hectares

142 - What is the total forest are of KHYBER PAKHTUNKHWA ?






1.21 million hectares

143 - What is the total landmass of the country ?






87.98 million hectares

144 - What is the contribution of forestry to the agriculture sector ?






0.004

145 - What is the share of forest area as percent of the total geographical area of the country ?






4.8

146 - The production of wheat in 2001-2 dropped by 2.9 percent. What was the size of wheat crop this year ?






18475 thousand tones

147 - What yield of cotton crop is recorded in Pakistan ?






570 kgs/hec

148 - Which one of the following is the main cash crop of Pakistan ?






cotton

149 - National Arid-land Development and Research Institute (NADRI) is at ?






Islamabad

150 - Arid Zone Research Centre, of PARC is situated at ?






Quetta

151 - Use of Borom and Zink can improve ?






cotton yield

152 - Nimbokil-60EC is formulated for the control of ?






agricultural insect pest

153 - How much irrigation water shortage was witnessed last year ?






0.308

154 - Pakistan spends annually US$ $ 788 million on the import of ?






edible oil

155 - The annual requirement of edible oil is nearly ?






1.9 million tones

156 - The domestic requirement of oil seed has almost doubled during the last?






7/8 years

157 - The total forest area of Pakistan is estimated at ?






6.20 million hectares

158 - Livestock sector accounts for nearly 36 percent of agriculture value added and about 9.0 percent of the ?






GDP

159 - How much wood the forest sector provides ?






3.5 million hectares

160 - What is total forest area of Azad Kashmir ?






0.42 million hectares

161 - What is the total estimated forest area of Sindh ?






0.92 million hectares

162 - The total forest area of Punjab is ?






1.69 million hectares

163 - Kinds of forest in Pakistan are coniferous forest, irrigated plantation riverain forests and ?






Scrub forests

164 - What is the contribution of forest sector in GDP ?






0.001

165 - What was the yield of wheat in 2010-11 ?






2314 kgs/hec

166 - Which is the main staple food of the population and largest grain crop of the country ?






wheat

167 - The main export items of the country are crop cotton and?






cotton vast products

168 - One-third of the forest area is productive, and the remaining two-third is maintained for ?






Environmental protection

169 - During the year 1999-2000 how much timber was contributed by the forest sector ?






425 thousand cubic meters

170 - Forests and rangelands support 30 million herds of livestock. How much amount this livestock contributes to Pakistan's annual export earnings ?






$400 million

171 - In Pakistan what is the yield of sugarcane ?






48042 kg/hec

172 - The share of sugarcane crop in value added in agriculture is 6.3 percent What is the share in GDP ?






0.015

173 - Which is the second largest staple food crop in Pakistan ?






rice

174 - Rice account for 6.6 percent in value added in agriculture. What is its contribution in GDP ?






0.061

175 - In 2010-11 the yield of rice in Pakistan was ?






1836 kgs/hec

176 - Rice is very important food as well as ?






cash crop

177 - Lint cotton is a major?






export item

178 - Cotton accounts for 11.5 percent of value added in agriculture. How much it accounts in GDP ?






0.027

179 - Which one is the single largest component of agriculture sector in the country ?






livestock

180 - What growth rate was witnessed in agriculture sector last fiscal year ?






0.014

181 - At what rate (average) agriculture grew over the last decade ?






0.033

182 - Minor crops in Rabi season are pulses, potatoes and ?






All these

183 - Which crops are sown in Rabi season ?






All of them

184 - What is the period of Rabi season ?






Oct-Dec to April-May

185 - Kharif crops include ?






All of them

186 - When the period of Kharif crop starts and when ends ?






April-June, Oct-Sept

187 - Pakistan's largest food crop is ?






Wheat

188 - Pakistan is the _____largest tobacco Producer country in the world?






Eight

189 - Which are Pakistan major seasons for agriculture crop ?






Kharif & rabi

190 - Irrigation was developed in the Indus Valley Civilization by around ______?






4500 BCE

191 - Pakistan is the _____largest Oranges Producer country in the world ?






Eight

192 - Pakistan is the _____largest Wheat Producer country in the world ?






Eight

193 - Pakistan is the _____largest Producer country in the world?






Seventh

194 - Pakistan is the _____largest Onion Producer country in the world ?






Fifth

195 - Pakistan is the _____largest Chickpea Producer country in the world ?






Second

196 - Pakistan is the ____largest milk producer country in the world?






Fifth

197 - Which province of Pakistan is the largest Edible oils producing province ?






Punjab

198 - Which province of Pakistan is the largest Jowar producing province ?






Punjab

199 - Which province of Pakistan is the largest sugarcane producing province ?






Punjab

200 - Which province of Pakistan is the largest cotton producing province ?






Punjab

201 - Which Province of Pakistan is the largest wheat producing province ?






Punjab

202 - Food crops cover about ___ of cropped areas?






0.75

203 - About ____ of land is cultivated through irrigation water?






0.75

204 - What kind of soil is treated with gypsum to make it suitable for cropping ?






Alkaline

205 - The total forest area of Pakistan is estimated at ?






6.20 million hectares

206 - When the period of Kharif crop starts and when ends ?






June-September

207 - Which one is the dominant source of foreign exchange earning ?






Agriculture

208 - Which is the oldest hydroelectricity project in Pakistan ?






Malakand Dargai

209 - Jamrao Canal is located in the province of ?






Sindh

210 - Which is the longest canal of Pakistan ?






Lloyd Canal

211 - The period of Rabi Season is _____ ?






October-May

212 - Higher summer temperature, stiff soil capable of supporting heavy weight of plant is essential for ?






Rice

213 - When the Indus Water Treaty was signed ?






19th September 1960

214 - What is the total length of canals in Pakistan ?






6429 Kilometer

215 - The link canal which irrigates the district of D.G khan and D.I khan starts from ?






Chashma Barrage

216 - The crop most susceptible to frost it ?






Cotton

217 - The period of Rabi season is ?






October-May

218 - When the period of Kharif crop starts and when ends ?






June September

219 - Up till now how much of the water-logged and saline land has been reclaimed ?






18 million acres

220 - How much of the total area cultivated is under irrigation system ?






0.7

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