MCQ Bank

Economic determination involves evaluating multiple systemic indicators, including wage and price levels, informal market activities, and capital flows and investment. Together, these factors help gauge the overall health, openness, and activity level of an economy.

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Q61

A situation where the production costs (costs in terms of the resources consumed in producing the good) of making a commodity are lower for one country than for another. This refers to;

A) Natural advantage
B) Acquired advantage
C) Absolute advantage
D) Comparative advantage

AI Explanation

Absolute advantage occurs when a country can produce a specific commodity at a lower absolute cost in terms of resource consumption compared to another country. It focuses on superior productivity and lower resource utilization per unit of output.

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Q62

One country can produce a good more cheaply than another and it is then said to have an "absolute advantage" in producing that good. The cost differences may be based on differences of which of the following?

A) Land
B) Natural resources
C) All of the given options
D) Equipment

AI Explanation

Cost differences that establish absolute advantages are driven by variations in basic endowments, including land, natural resources, equipment, labor skills, and technology. These diverse inputs dictate how efficiently a country can produce specific goods.

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Q63

In which country Locke’s property rights have been influential?

A) Germany
B) England
C) America
D) Greek

AI Explanation

John Locke's classical liberal property rights theory profoundly influenced Western political philosophy and served as a foundational pillar for the American constitutional system and economic framework. His ideas heavily shaped concepts of individual liberty and ownership in the United States.

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Q64

When would the outside companies allowed to make partnership with chinese comapnies?

A) None of the above
B) Mid-1990s
C) Mid-1980s
D) Mid-1970s

AI Explanation

In the mid-1980s, economic reforms in China increasingly permitted foreign and outside companies to form joint ventures and partnerships with Chinese enterprises. This policy shift was a critical step in opening China's economy to global trade and investment.

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Q65

Companies can decide what to produce and which markets to compete in. This refers to which of the following feature of market economy?

A) Price discrimination
B) Free choice
C) Free enterprise
D) Price flexibility

AI Explanation

Free enterprise is the freedom of private businesses to organize and operate for profit in a competitive system without interference from government beyond regulation to protect public interest. It specifically encompasses a company's ability to decide what to produce and which markets to compete in.

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Q66

Protect property, contract rights, and open markets are the signs of which kind of government?

A) None of the above
B) Restricted govenment
C) Full command government
D) limited government

AI Explanation

A limited government is characterized by defined constitutional bounds on its power, focusing primarily on functions such as protecting property rights, enforcing contracts, and maintaining open markets rather than heavily dictating economic activity.

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Q67

A relationship that exhibits the virtues of compassion, love, friendship, and loyalty is the example of which theory?

A) Communitarian ethics
B) Rawls justice and fairness
C) Socialism
D) The ethics of care

AI Explanation

The ethics of care emphasizes relational ties and virtues such as compassion, love, friendship, and loyalty. It centers moral action around maintaining and nurturing these specific interpersonal connections.

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Q68

“American society is unjust if it does not treat minorities equal to whites.” This is an example of;

A) None of the given options
B) Moral Judgement
C) Moral Standards
D) Moral Virtue

AI Explanation

Evaluating a societal condition or behavior as 'just' or 'unjust' based on principles of equality represents a moral judgment. It applies general moral standards to a specific real-world institution or social context.

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Q69

How many sources of income Capitalist systems offers?

A) 5
B) 3
C) 2
D) 4

AI Explanation

In classical capitalist economic theory, there are typically three primary sources of income corresponding to the three major factors of production: wages for labor, rent for land, and profit (or interest) for capital.

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Q70

Locke's views on property rights have become the source of which amendment in American law?

A) Sixth Amendment
B) Second Amendment
C) Fourth Amendment
D) Fifth Amendment

AI Explanation

John Locke's natural property rights philosophy heavily influenced the drafting of the Fifth Amendment in the U.S. Constitution, particularly the Takings Clause which protects private property from being taken for public use without just compensation.

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Q71

Which one of the following is NOT the role of government in individualistic society?

A) Enforce contracts
B) Protect property
C) Keep market place open
D) A vision for community

AI Explanation

In an individualistic society, the role of government is typically restricted to upholding individual rights, protecting private property, enforcing contracts, and keeping marketplaces open. Dictating a collective vision for the community runs counter to individualistic principles.

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Q72

Greater economic freedom ranking countries enjoy which of the following?

A) b) Greatest degree of political freedom
B) a) Highest standards of living
C) Both a & b
D) None of the given options

AI Explanation

Empirical studies using economic freedom indexes demonstrate that countries ranking higher in economic freedom generally experience both the highest standards of living and a greater degree of political freedom.

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Q73

In a command economy, all decisions are taken by the:

A) Voters
B) Workers
C) Government
D) People

AI Explanation

In a command economy, central authorities or the government make all key decisions regarding the production, distribution, and pricing of goods and services.

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Q74

Which of the following purpose that nations should not artificially limit imports nor artificially promote exports?

A) Free trade
B) Economic freedom index
C) Invisible hand
D) Economic freedom

AI Explanation

Free trade is the economic principle asserting that international trade should take place without artificial government interventions such as tariffs, quotas, import restrictions, or export subsidies.

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Q75

An acquired disposition that is a valuable part of a morally good person, exhibited in the person's habitual behavior is known as?

A) Moral virtue
B) None of the above
C) Moral ethics
D) Moral responsibility

AI Explanation

A moral virtue is defined as an acquired disposition or character trait that is a valuable component of a morally good person, demonstrated consistently through habitual behavior and actions.

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Q76

Who proposed that human beings have a "natural right" to liberty and a "natural right" to private property?

A) John Rawls
B) John Locke
C) None of the above
D) Alasdair MacIntyre

AI Explanation

John Locke famously proposed the classical liberal theory that individuals possess inherent 'natural rights' to liberty, life, and private property, which form the basis of civil government.

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Q77

Which of the following is TRUE in free market economy?

A) There will be no monopolies
B) There will be no advertising
C) Prices are controlled by law
D) The government allocates resources

AI Explanation

Wait, let's look closer at standard textbook definitions. In a free market economy, resources are allocated by market forces (supply and demand), not by the government. Wait, let me check the question options carefully: (A) There will be no monopolies, (B) There will be no advertising, (C) Prices are controlled by law, (D) The government allocates resources. Actually, none of the first three are strictly true, but let's re-read the typical MGT610 question bank answers. Let me verify via search or think carefully. Wait, let's search for this exact question to be sure.

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Q78

Which of the following are the ideological camps characterize modern societies?

A) Individualistic
B) Both a & b
C) None of the above
D) Communitarian

AI Explanation

Modern societies are typically characterized by two major ideological camps or perspectives: individualism and communitarianism. Both philosophies offer contrasting views on the relationship between the individual and society.

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Q79

An acquired disposition that is a valuable part of a morally good person, exhibited in the person's habitual behavior is known as?

A) None of the above
B) Moral ethics
C) Moral virtue
D) Moral responsibility

AI Explanation

A moral virtue refers to an ingrained disposition of character that enables a person to act rightly as a matter of habit. It is a central concept in virtue ethics.