Question # 1

Macro economics is the study of.

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Individual building blocks in the economy

The relationship between different sectors of the economy

Household purchased decisions

The economy as a whole

The growth rate of economics tend to converge because._________ is easier when capital per worker is low and because of_____

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capital widening, technical innovation

Capital widening, catch up in technology

Capital deepening, technical innovation

Capital deepening, catch up technology.

Economics is the study of.

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All business, including how they operate why the exist and how they afect

Decisions that people must make because goods and services are limited.

How to save money, spend money invest savings, and balance a checkbook

The stock market the bond market and investment strategies

Big business and its impact on our live

In market economics the incentive that draws entrepreneurs into industry is.

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Government bonuses for meeting production quotas

Profit

Government assumption of the risk of failure

Government assistance with making output and pricing decisions

A drop in the price of compact disc shifts the demand curve for prerecord tapes leftward from that you know that compact discs and precorded tapes are.

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Inferior goods

Substitutes

Complements

Normal goods

Cross -elasticity following commodities is very high

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Compliments

Normal

Goods substitutes

Good compliments

A monopoly may be self perpetuating because profits may be used for

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research

Cost saving

Technical advance

All of the above

According to the cost based definition of dumping occurs when a firm sells a product abroad at a price that is less than

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Average total cost

Average variable cost

Average fixed cost

Marginal cost

If investors expectations concerning the future are positive and thus increase investment at every interest rate the.

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IS curve would shift up

IS curve would shift down

LM curve would shift down

IS and LM curves will not shift

If there is a price celling which of the following is NOT likely to occur.

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Rationing by first come first served

Black markets

Gray markets

Sellers providing goods for free that were formerly not free

What happens to the money supply if the deficit is financed by selling bonds to the general public.

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The money supply increaes

The money supply decreases

The money supply is unaffected

We cannot tell what will happen to the money supply

The main assumption of Kaldor model is that the economy operates at the level of .

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Full employment

Above than full employment

Less than full emplyment

None of above

A tariff can________ raise a country's welfare.

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Sometimes

Never

Always

None of these

Which of the following changes shifts the SRAS curve up.

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Ani increases in the labor force

A decrease in government purchases

An increase in firms costs

An increase in the money supply

John Stuart Mill was the founder of the

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Theory of reciprocal demand

Theory of absolute advantage

Theory of comparative advantage

Theory of mercantilism

According to the Laffer curve as tax rates increase tax revenues.

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Decrease continuously.

Initially decrease and then increase

Rise continuously

Initially increase and then decrease

If the economy grows the government's budget position will automatically

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Worsen

Improve

Stay the same

Increase with inflaction

Given the cost data indicated in the table above the average variable cost of producing 7 units of output is

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Rs.37

Rs.29

Rs.31

Greater than Rs.37

The increase in dependent variable that results when the independent variable increases by one unit in a simple lines. function is called.

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Y intercept of the curve

Slope of the curve

X intercept of the curve

Marginal value

While resources and products flow in one direction of the circular flow model what flow the other direction.

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Services

Public goods

Money

Imported goods

A decrease in the quantity of money supplied shifts the money supply curve to the _____ and the LM curve to the

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right ; left

right ; right

left ; left

left ; right

Astory is a starting point of.

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Experimental design

Quantitative research

Scientific method

Narrative method

industrial growth rate projected to__ this year against 3.1 percent last year

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2.4%

3.4%

4.4%

5.4%

Real GNP is a crude measure of national welfare because it excludes.

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Consumption

Investment

Export's

work in the home

Art gallery argument give emphasis to aesthetic aspect of.

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Diversity

Nature

Life

None of these

The short run impact of unanticipated expansionary monetary policy is that.

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Real output decrease

Employment decreases

Real interest rates decrease

Profit margins decrease

Tariffs.

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Decrease the domestic price of a product.

Increase government earnings from tax

Increase the quantity of imports

Decrease domestic production

A country transactions with the rest of the world are recorded in the

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Balance of international indebtedness

Balance of financial transactions

Balance of payments

Income statement

Skills that embodied in a person are called.

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Human capital

Embodied skills

Physical capital

Experience skills

Marginal revenue is the ________ when output is.

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Change in average revenue, inversed.

change in total revenue, increased by one unit

change in average revenue, increased by one unit

Change in total revenue, incresed.

The firms average variable cost of the 150th unit is.

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Rs.15

Rs.17

Rs.20

Rs.9

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