Question # 1

Of the following which one is a characteristic of monopolistic competition.

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Standardized product

Comparatively easy only

Little non price competition

None of these

Guid up of foreign exchange reserves leads to.

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Decrease in money supply

increase in money supply

contraction in money supply

None of the above

Depreciation is.

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A decrease in the stock of capital

Gross investment

Net investment

An increases in the stock of capital

If an economy experience an increase in productivity it means that.

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the level of output has risen

Employees are working harder than before

Output per unit of input has risen

Technical change has taken place

A depreciation of the dollar will have its most pronounced impact on imports if the demand for. Imports is.

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Constant

Inelastic

Elastic

Unitary elastic

A decrease in lump sum taxes is an examples of.

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Contractionary fiscal policy

Expansionary fiscal policy

A change in induced taxes

A and c

Productivity can grow.

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If capital per hour of labor increases.

If there are no technological advances.

If capital per hour of labor decreases

If real GDP per hour labor decrease and capital per hour of labor increases.

Disposable incomes is equal to.

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National income Minus taxes

Real GDP

National income Minus taxes

National income Minus Taxes plus transfers

The effect of the most favored nation clause is to

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Eliminate at tariffs between countries.

Increase all tariff rates between countries

Maintain a nondiscriminatory structure of tariffs

Marlein a discriminatory structure of tariffs.

Monopoly market is characteristics by

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A large number of sellers

Only one seller

Thousand of seller

All of these

The asset market approach a more helpful in explaning.

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why excahnge rates remain quite stable

Why governments change their money supplies.

Long term exchange rate movement.

Short term exchange rate movement.

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