Question # 1

The average total cost of a wedge increases from Rs. 0.79 ro Rs. 0.83 Evidently

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AFC exceeds AVC

MC is between Rs. 0.79 and Rs. 0.83

AVC is Rs. 0.83

MC is greater than Rs. 0.83

A possible use in economies for the circle of the ellipse is to model.

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Production possibility curve

Demand curve

Iosco line

Supply curve

The study which wants to determine the frequency of occurrence of an event of its association with something.

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Descriptive

Explorative

Formulate

Diagnostic

In monopoly there is.

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Single seller

Single buyer

Two producers

Few seller

The idea that the money supply should change to accommodate changes in aggregate demand is associated with the ideas of.

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Milton Friedman

Ronald reagan

Margaret Thatcher

John Maynard Keynes

In order to constitute an oligopolistic market structure.

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There must be a few firms in a given relevant market

There must be a few firms selling in a national market

There must be more than 20 firms selling in the international market

There must be fewer than 15 firm is any given market

The earliest statement of the principle of comparative advantage is associated with.

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Adam Smith

David Ricardo

Eli Heckshcer

Berti Ohlin

"An Enquiry into the Nature and causes of wealth of Nations" is thebook of economist.

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Adam smith

Marshall

Robbins

None of above

If Supply and demand both decrease simultaneously. Which of the following will happen.

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Price will rise

Quantity sold will rise

Price will fall

Quantity sold will decrease

An increase in consumer income will increase demand for a __________ for decrease demand for a.

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Substitute good interior good

Normal good, interior good

Interior good, normal good.

Normal good, complementary good.

The concept of unbaled growth and balance growth are.

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Unlimited value

Single value

Limited value

Short value

If there is a prices 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

International trade during the 19th century was characterized by.

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Extensive barriers to trade

Operation of the gold standard

A small volume of international trade

None of these

To avoid double counting when the GNP is estimated, economists

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Price all goods and services bought and sold in all markets

Use the GNP deflator

Price only intermediate goods

Calculate value added at each stage of production.

The overall Budget Deficit is financed from

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External borrowing

Non bank borrowing domestically

Bank borrowing plus the above two at a and b

None of the above

Firms are assumed to ____ costs and to _______ profit.

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Incur , desire

Pay ; make

Change ;earn

Minimize ; maximize

An increasingly higher marginal income tax is

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Progressive

Regressive

Proportional

Both b and c

A inverse is defined only if A is a

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Square matrix

Column vector

Orthogonal matrix

Skew symmetric matrix

An increase in consumption at any given level of income is likely to lead to.

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a fall in savings

An increase in exports

A fall in taxation revenue

A decrease in import spending

During periods of negative demand shocks deficit target reductions such as those mandated in the Gramm Rudman Hollings Act would tend to.

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Stimulate the economy and increase empolyment.

Result in additional recessionary declines in employment and income

Stimulator defiance spending

Have an automatic stabilizing impact upon the economy

If both Marginal cost and marginal revenue increase, a firm.

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Should increase output

Should reduce output

Will require further information on how to respond

should not change output

Possible causes of involuntary unemployment are

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Minimum wage agreements

Trade unions

Scale economies

All of the abvoe

When a person received an increase in wealth, what is likely to happen to consumption and saving.

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Consumption increase and saving increases.

Consumption increases and saving decreases

Consumption decreases and saving increases

Consumption decreases and saving decreases

World trade has been increasing due to.

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Increased tariffs

Increased legal barriers

Increased embargoes

Reduced protectionism

The intersection of the IS and LM curves captures.

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The equilibrium of the demand and supply sides of the economy

the equivalence of monetary and fiscal policy

Joint equilibrium in the goods and money markets

All of the above

Indifference curve is alwyas.

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Vertical

Horizontal

Concave

Convex

When world trade organization replace GATT.

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1 January 1995

1 January 1994

1 December 1997

1 Jun 2000

A mathematical expression relating the amount of output produced to quantities of capital and labor utilized is the

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Real interest rate

Production function

Productivity relation

Marginal product

Company A estimates the price elasticity of demand for its products.3.0 The price of the product is Rs. 15. If MC = 2+40, the profit maximizing level of output.

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4 units

2 umits

5 units

3 units

Less demand in the economy may increase unemployment this may lead to less spending which may reduce demand further This is called.

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The upward accelerator

The downward multiplier

The upward PPF

The downward MPC

A firm that is a price taker faces a perfectly

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Elastic supply curve

Inelastic demand curve

Elastic demand curve

In elastic supply curve

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