Question # 1

Gross National product equals

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Net National Product adjusted for inflation

Gross domestic product adjusted for inflation

Gross Domestic product plus net property income from abroad

Net National product plus net property income from abroad

There are ______ methods of measuring GDP

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Three

Four

Five

None

What is the significance of underestimating transactions money.

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Monetary policy will be over simulating the economy

Monetary policy will be putting a drag on the economy

there is a need for money that the central bank should be meating.

The economy has too much money and there frore not enough spending.

A price decrease and an increase in income are similar in that

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Both force the consumer to achieve a lower level of well being

Both force the consumer to reach a lower indifference curve

Both move the budget line outward

^{They are not similar at all}

"Principles of economics" is the book of

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Robbins

Adam smith

Hicks

Marshall

The extra utility from consuming one more unit of a good is called.

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Marginal utility

Additional utility

surplus utility

Bonus utility

You move some of your savings account balance into your checking account.

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M2 falls and M1 rises

M1 falls and M2 rises

M1 and M2 are unchanged

M1 rises and M2 remains unchanged

Pure research also known as

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Fundament research

Action research

Practical research

applied research

In price discrimination, which section of the market is charged the higher price.

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The section with the richest people

The section with the oldest people

The section with the most inelastic demand

The section with the most elastic demand

Which of the followig does not shift the IS curve .

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An increases in autonomous consumption

An increase in government spending.

A decline in government spending

A fall in theinterest rate

Starting from a balanced budget, for a given tax rate an increase in income will cause the government budget to.

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Move into surplus

Move into deficit

Remain unchanged

None of these

ECO come into force in.

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January 1985

January 1966

January 1948

January 1949

Equilibrium in the money markets can be expressed by the equation i = 9k/h) Y -M/h. The slope of LM decrease when

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k increases and h increase

k increases and h decrease

k decrease and h increase

k decrease and h decrease

When investment spending is negatively related to the rate of interest, equilibrium income in the goods market.

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Is unrelated to the rate of interest

Is positively related to the rate or interest

Inversely related to the rate of interest

Falls as the rate of interest decreases

Classical design is a type of

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Basic research

Applied research

Action research

Exploratory research

A scarce good.

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Does not exist

Is a good that can only be purchased with money

Is a good that can never be purchased with money

Is a good that is available in limited quantities, but is desired in greater quantities.

In the UK in recent years, union membership has ______ and days of work lost because of strikes has.

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Grown, declined

declined, declined

declined, grown

grown , grown

A positive definite Hessian fulfills the second order conditions for

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Maximum

Minimum

Both maximum and minimum

Mini max

A tax of 18 cents per unit of imported cheese would be an example of a.

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Compound tariff

Effective tariff

Ad valorem tariff

Specific tariff

Price controls are

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Necessary for consumer's welfares

A must to check inflation

Doomed to fall

None of these

Which of the following taxes is regressive.

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The Federal income tax

The state income tax

The sales tax

The Medicare tax

If the demand curve for a good is horizontal and the price is positive then a leftward shift of the supply curve results in.

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a price of zero

An increase in price

A decrease in price

No change in price

The price mechanism cannot.

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Act as a signal

Act as an incentive

Act as a rationing device

Shift the demand curve

The equilibrium price and quantity , given the inverse demand and supply functions.

po = 3q +30 and p s = 2q -5

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p = 9 and q = 7

p = 10 and q = 7

p = 9 and q = 8

p = 7 and q = 9

An increase in aggregate demand will have most effect on prices if.

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Aggregate supply is price inelastic

Aggregate supply is price elastic

Aggregate supply has a unitary price elasticity

Aggregate demand is price inelastic

Qara -e- Hasna is normally payable to.

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Needy persons

Poors

Helpless

All of these

During periods of rising inflation and rising interest rates we expect the demand for real cash to.

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rise

fall

not change

fluctuate

If GNP = 1,000 billion and the money supply is 330 billion , then the velocity of money is.

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A value less than 1.4

3.33

1.48

3.03

The quantity theory of money allows monetarists to obtain a number of economics predictions by assuming a constant.

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Velocity of money

Nominal output

Overall price level

Stock of money

That the division of labor a limited by the size of the market best applies to which explanation of trade

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Factor endowment theory

Product life cycle theory

Economies of scale theory

Over lapping demand theory.

In a perfectly competitive labour market firms are wage takers and the marginal cost of labour equals.

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the average cost of labour

The marginal product

The marginal revenue

The total cost of labour

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