[{"id":213749,"question":"If the economy is in equilibrium at Rs. 180 billion and taxes are reduced by Rs.20 billion, find the new equilibrium given that this is a simple economy i.e. exogenous government spending tax collection and investment spending and a marginal propensity to consume of . .75","choices":[{"text":"60","value":"A"},{"text":"200","value":"B"},{"text":"250","value":"C"},{"text":"240","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213748,"question":"If an individual has a money income M of Rs. 999 , the price of X is rs.7.00 per unit and ithe price of Y is Rs. 300 per unit find the equation for the budget lines.","choices":[{"text":"Y = 333 - (7/3) x","value":"A"},{"text":"Y = 142 - (7/3) x","value":"B"},{"text":"Y = 142- (3/7) x","value":"C"},{"text":"Y = 323 - (7/3) x","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213747,"question":"If X becomes more expansive i relation to Y, what happens to the budget line in the X - Y space, with Y on the vertical axis.","choices":[{"text":"It shifts to the right","value":"A"},{"text":"It shifts to the left","value":"B"},{"text":"The slope becomes flatter","value":"C"},{"text":"The slope becomes steeper","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213746,"question":"Quality controlleers at the LMN corporation formulate the null hypothesis that the proportion of defective items in the production line is 10% they reject this hypothesis when they find 12 defective items in 100. If the defective rate is really 10% What type of error did they make.","choices":[{"text":"Standard error of the mean","value":"A"},{"text":"A type II error","value":"B"},{"text":"A type I error","value":"C"},{"text":"The error probability","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213745,"question":"The long term demand for real money balance will rise when","choices":[{"text":"the income elasticity of the demand for money is less than unity.","value":"A"},{"text":"There is a long term increase in the price level","value":"B"},{"text":"There is a relative increase in the stock of government securities.","value":"C"},{"text":"Long term market interest rates are falling.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213744,"question":"Whose opinions have revolutionized the scope of macro economics.","choices":[{"text":"Adam Smith","value":"A"},{"text":"J.B. Say","value":"B"},{"text":"J.M. Keynes","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213743,"question":"Which theory is generally included under micro economics.","choices":[{"text":"Price theory","value":"A"},{"text":"Income theory","value":"B"},{"text":"Employment theory","value":"C"},{"text":"None of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213742,"question":"If a Canadian dollar costs 0.75 in terms of U.S. dollars, how much Canadian money would an American need to spend in Canada to get a dollar's worth of U.S. value.","choices":[{"text":"25$","value":"A"},{"text":"99$","value":"B"},{"text":"Rs.1.25","value":"C"},{"text":"Rs.1.13","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213741,"question":"Ineven A occurs the payoff will be Rs.5,670.00 . the probability of event A occurring is .87 What is the expected payoff of event A.","choices":[{"text":"Rs.5,670.00 9d)","value":"A"},{"text":"Rs.4,832.10","value":"B"},{"text":"Rs. 4,932.90","value":"C"},{"text":"Rs.5000.00","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213740,"question":"Which of the following will cause a monetary induced change versus a fiscal induced change in equilibrium income as determined.by IS - LM analysis.","choices":[{"text":"A shift in the consumption function","value":"A"},{"text":"A shift in government expenditures","value":"B"},{"text":"A change in liquidity preference","value":"C"},{"text":"A change in a government expenditures","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213739,"question":"You are gold the level of savings in the economy is Rs.25 billion of equilibrium Using the consumption function C =20 + .9 Y, find equilibrium income .","choices":[{"text":"250","value":"A"},{"text":"900","value":"B"},{"text":"450","value":"C"},{"text":"350","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213738,"question":"To avoid double counting when the GNP is estimated, economists","choices":[{"text":"Price all goods and services bought and sold in all markets","value":"A"},{"text":"Use the GNP deflator","value":"B"},{"text":"Price only intermediate goods","value":"C"},{"text":"Calculate value added at each stage of production.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213737,"question":"Characteristics of economic laws are","choices":[{"text":"Mere statement of economic tenduencies","value":"A"},{"text":"Less certain","value":"B"},{"text":"Hypothetical","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213736,"question":"Which of the following will not result in an increase in the level of income.","choices":[{"text":"An increase in autonomous spending","value":"A"},{"text":"A decrease in autonomous taxes","value":"B"},{"text":"An increase in autonomous transfers","value":"C"},{"text":"an increased in net tax revenues","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213735,"question":"Dynamic multipliers occur when","choices":[{"text":"the assumption of ceteris paribus is dropped","value":"A"},{"text":"The economy is not in equilibrium","value":"B"},{"text":"Consumption is unrelated to disposable income","value":"C"},{"text":"there is lagged response between consumption and disposable income","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213734,"question":"A change in autonomous spending is represented by.","choices":[{"text":"A movement along a spending line","value":"A"},{"text":"A shift of a spending line","value":"B"},{"text":"A change in a behavioral coefficient.","value":"C"},{"text":"None of these","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213733,"question":"When the marginal propensity to consume is 0.75 the multiplier has a value of.","choices":[{"text":"4","value":"A"},{"text":"5","value":"B"},{"text":"3","value":"C"},{"text":"2","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213732,"question":"The valued of expenditure multiplier relates.","choices":[{"text":"The change in autonomous spending to the change in income","value":"A"},{"text":"the change in consumption to change in income","value":"B"},{"text":"The change in come to the change is consumption","value":"C"},{"text":"The change in income to the change in autonomous spending.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213731,"question":"By definition, the marginal propensity to consumes.","choices":[{"text":"Equals OC/A Yd","value":"A"},{"text":"Is the behavioral coefficient c in the equation C = C + cYd","value":"B"},{"text":"Is the slops of the consumption function.","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213730,"question":"When planned saving equals Rs.40+0.20 Yd and planned investment is rs. 60, the equilibrium level of income in.","choices":[{"text":"Rs. 100","value":"A"},{"text":"Rs. 400","value":"B"},{"text":"Rs.500","value":"C"},{"text":"Rs.1000","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213729,"question":"When planned consumption equals Rs. 40 + 0.90 Yd and planned investment is Rs.50, the equilibrium level of income is.","choices":[{"text":"Rs.90","value":"A"},{"text":"Rs.400","value":"B"},{"text":"Rs.500","value":"C"},{"text":"Rs.900","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213728,"question":"When the value of output exceeds planned spending .","choices":[{"text":"There is unsold output, and the level of income will fall","value":"A"},{"text":"there is unsold output and the level of income will rise","value":"B"},{"text":"There is unsold output, and the level of income does not change.","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213727,"question":"When planned saving is greater than planned investment.","choices":[{"text":"Output should increase","value":"A"},{"text":"Output should decrease","value":"B"},{"text":"Output should not change","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213726,"question":"Equilibrium occurs in a two sector model when","choices":[{"text":"Saving equals investment.","value":"A"},{"text":"Consumption plys investment equals the value of putput","value":"B"},{"text":"Planned saving equals planned investment.","value":"C"},{"text":"Aggregate spending equals the revenues of the business sector","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213725,"question":"Suppose nominal GNP is Rs.500 in year 1, the base year If the GNP deflator doubles by year 6 while real output has increased 40% nominal output in year 6 equals.","choices":[{"text":"Rs.2000","value":"A"},{"text":"Rs.1400","value":"B"},{"text":"Rs.1000","value":"C"},{"text":"Rs.750","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213724,"question":"If personal income equals Rs.570 white personal income takes equal Rs.90 consumption is Rs.430. interest payments total Rs. 10 and personal saving is Rs. 40, disposable income equals.","choices":[{"text":"Rs. 500","value":"A"},{"text":"Rs.480","value":"B"},{"text":"Rs. 470","value":"C"},{"text":"Rs.400","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213723,"question":"Which of the following is not included in gorses investment.","choices":[{"text":"Business and residential constrcution.","value":"A"},{"text":"Expenditures on consumer goods","value":"B"},{"text":"Additions to business inventory","value":"C"},{"text":"Expenditures on machinery","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213722,"question":"In a model in which there is no government new investment capital replacement or international trade the market value of final output equals.","choices":[{"text":"Aggregate consumption","value":"A"},{"text":"The sum of the receipts of economic resources","value":"B"},{"text":"The sum of wages rent interest and profit","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213721,"question":"In a private sector model","choices":[{"text":"Household saving is a leakage from the circular flow","value":"A"},{"text":"Investment is a spending injection","value":"B"},{"text":"All of the above","value":"C"},{"text":"None of the above","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213720,"question":"\"Economics is a science \" the basis of this statement is.","choices":[{"text":"Relation between causes and effect","value":"A"},{"text":"Use of deductive method and inductive method for the formations of laws","value":"B"},{"text":"experiments","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4}]