Economics Practice MCQ Page 5

Multiple Choice questions for Economics in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 1142   As nearly as we can estimate it. Soviet productivity growth
  1. Was subject to severe cycles
  2. Accelerated in the 1980s
  3. Had nothing to do with the decline of socialism
  4. Was stagnant or declining after about 1965
  5. Was never positive
Question: 1143   Soviet managers
  1. Were left little to do under central planning
  2. Pursued economically efficient choice
  3. Had incentives to reduce product quality and variety
  4. Had incentives to reduce production levels
  5. Had both the incentives described in c. and d.
Question: 1144   The soft budget constrain of soviet enterprises was.The soft budget constrain of soviet enterprises was
  1. The absence of a bankruptcy threat
  2. Similar to promote efficiency
  3. Designed to promote efficiency
  4. The major cause of inflation in the soviet union
  5. A mechanism through which price adjustment was made gradual
Question: 1145   Which of the following is not a major aspect of the transition of socialist to market economies?
  1. Freeing of prices
  2. Redefinition of property rights
  3. Development of market institutions
  4. Establishment of stronger moral incentives for efficiency
  5. Disestablishment of large state enterprises.
Question: 1146   The concept of property rights in an economic system has to do with the
  1. Ownership of society’s productive resources
  2. Choices firms make on what and how to produce
  3. Use of economic incentives to motivate people
  4. Use of moral incentives to motivate people
Question: 1147   An apparently irreversible trend in china in the 1990s is
  1. Reliance on moral incentives to encourage private production
  2. A movement to allow individual state runs banks to print their own money
  3. A shift from public to private production of goods and services
  4. To allow Japan to operate major Chinese industries
Question: 1148   Market allocation fundamentally relies upon
  1. A system of relative prices
  2. A belief that employees work for the good of society
  3. Government ownership of the means of production
  4. Moral incentives to encourage productive efficiency
Question: 1149   Karl Marx believed that in the transitory socialist phase of an economy’s evolution people should be rewarded
  1. So that all incomes would be equal
  2. To each according to their contribution
  3. To each according to their need
  4. So that people were all poor and would thus work harder
Question: 1160   Market allocation fundamentally relies upon
  1. A system of relative prices
  2. A belief that employees work for the good of society
  3. Government ownership of the means of production
  4. Moral incentives to encourage productive efficiency
Question: 1161   Karl Marx’s belief that communism would eventually replace capitalism was based upon his faith in
  1. The superiority of economic over moral incentives
  2. A revolution by exploited workers
  3. Overconsumption by the working class that would bankrupt the economy
  4. The inability of factory owners to increase exploitation of workers
Question: 1162   As the former soviet economy moves toward private market capitalism the world bank suggests first priority should be given to
  1. Stabilize the macro economy and deregulate prices
  2. Privatization of state owned businesses
  3. Dismantling of nuclear weapons
  4. Adoption of one person one vote democracy
Question: 1163   As the former soviet economy moves toward private market capitalism the world bank suggests first priority should be given to
  1. Stabilize the macro economy and deregulate prices
  2. Privatization of state owned businesses
  3. Dismantling of nuclear weapons
  4. Adoption of one person one vote democracy