Question # 1

Economic transition involves high inflation because ______ and _____

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High monetary growth, high wages.

High budget deficits, devaluation

High monetary growth, devaluation

Prices surge from an artificially low level to their equilibrium level the inflation tax is required as source of government revenue.

Which of the following assets is most liquid.

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Shares of stock in IBM

Land

Gold

Currency

In monopoly when abnormal profits are made.

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The prize set is greater than the marginal cost

The price is less than the average cost

The average revenue equals the marginal cost

Revenue wquals total cost

Suppose taht an exise tax is imposed on the monopolist's product if the monopolist's marginal cost is horizontally the relevant range, which of the following statements must be true.

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The price will increase by an amount less than the tax

The price will increase by an amount equal to the tax

The price will increase by a amount greater than tax

The price may either increase or decrease

a x2 + bx + c = 0

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Linear equation

Quadratic equation

Polynomial of degree five

None of these

The reduction of the inflation rate is called

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Deflation

Disinflation

Inflation

Reflation

According the Keynes when the great depression started , the government should have.

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Done nothing

Decreased the money supply

Had a large increase in government spending.

Enacted high tariffs, such as the smoot Hawley tariff

An increase in the expected rate of inflation would.

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shift the Philips curve upward

shift the phillips curve downward

Shift the long -run phillips curve to the right

Shift the long-run phillips curve to the left

According to the .A.H Hasen the capitalistic economy is basically characterized with

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Instability

Stability

Inefficiency

Efficiency

Case study may be a source of hypothesis of.

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Future research

Research design

Content analysis

Intensive study

Which of the following changes shifts the long run aggregate supply curve to the right.

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A demographic change that increases the labor supply

A decrease in the demand for labor

An increase in consumer confidence

A decrease in taxes

The supply curve of a perfectly competitive firm

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Includes the upward sloping portion of the marginal cost

Is equal to entire margin cost

Includes the downward sloping portion of marginal cost

None of these

Those who argue in favor of import protection generally give the impression that such restricted trade will

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Decrease the level of national security

Provide benefits to some particular industry

Provides benefits to the entire nation

Not yield welfare losses for the nation

For equilibrium in an open four sector economy

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Actual injections = actual withdrawals

Planned injections = Planned withdrawals

Savings = investment

Government spending = tax revenue

Research may be made through either arbitrary method of

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Rational method

Scientific method

Imagination method

Vague method

A demand curve is not related to

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The time period

The price of the commodity

The price of substitution

Any of above

If the demand for coffee decreases as income decreases, coffee is a

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Normal good

Inferior good

Substitute good

Complementary good

The world narrative derived from Latin verb

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Quantitative research

Qualitative research

Descriptive research

Experimental

Equilibrium in the market for good A obtains.

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When there is no surplus or shortage prevailing in the market

Where the demand and supply curves for A intersect

When all of what is produced of A is consumed

All of the above

A Political problem with discretionary fiscal policy is the.

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Contractionary bias

Big state bias

Expansionary bias

Over reaction bias

Economics is the science of Wealth who gave this definition.

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J-x Mehta

Marshall

Adam Smith

Robbins

It is a process of checking to detect and correct errors and omissions.

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Coding

Editing

Analysis

Classifications

Law of variable proportion is also called.

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Law of non proportion returns

Law of substitution

Law of casts

Law of demand

Two commodities are considered to be perfect substitutes for each other if the elasticity of substitution is

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Positive

Negative

Infinite

None of these

"Economics is what economists do " It has been supported by.

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Richard jones

Comte

Gunnar Myrdal

All of the above

The goal of a pure market economy is to best meet the desires of

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Consumers

Companies

Workers

The government

Headquarter of IMF is located in.

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Geneva

Washington DC

London

New york

Which of the following will not be a determinant of the price elasticity of demand for a commodity.

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The absence of substitute for the good.

The presence of substitutes for the good.

The importance of the commodity in consumers budgets

The cost of producing the commodity

In autarky equilibrium.

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Production equals consumption

Export equal inmprts

There is no trade

All of the above

Leakages from the circular flow are____ and _____

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Investment savings, government expenditure

Saving , taxes net of subsidies, imports

Consumption, investment , government expenditure.

Consumption, taxes, impports

If your income during one year is L 10,000 ad the following year it is L,12,000 then it has grown by

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20%

2%

12%

15%

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