Question # 1

Why is the law of diminishing marginal returns ture.

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Specialization and division of labor

Spreading the average fixed cost

Limited capital

All factors being variable in the long run

Research is directed towards the solution of a

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Problem

Hypothesis

data

Survey

Globalization is made more difficult by

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The actions of the World Trade Organization

The removal of protectionist measures

Exchange rate instability

More free trade agreements

In monopolistic competition firms profit maximize where

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Marginal revenue = average revenue

Marginal revenue= Marginal cost

Marginal revenue= Average cost

Marginal revenue = Total cost

There are _______ major instrument of monetary policy.

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Three

Four

Five

None

A tax of 20 cents per unit of imported cheese would be an example of a

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Compound tariff

Effective traiff

Ad valorem tariff

Specific tariff

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

The conjecture that inequality first increases with development then decreases with further development has been

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Strongly supported by most studies

Supported mainly by cross section not time series studies.

Supported mainly by time sereis not cross section studies

Generally repudiated by empirical studies.

The value of a household's assets minus the value of its liabilities is called.

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Income

Debt

Stock

Wealth

The use of money is more efficient than barter because the introduction of money

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Reduces the need for economic specialization

Reduces the need to exchange goods

Reduce the need for other stores of value

Reduces transaction costs

A disadvantage of chain weighting is that

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Past inflation rates change whenever the base year changes.

Past growth rates of real GDP change whenever the base year changes.

It causes output growth to slow

The components of real GDP don't sum to real GDP

Tertiary activity includes.

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Production

Services

Agriculture

None of these

The set which contains all the element of the two given sets A and B, avoiding duplication, is called.

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Intersection of A and B

Union of A and B

Set A and B

None of these

If A is preferred to B and B is preferred to C and there is indifference between A and D

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D is preferred to C

B is preferred to D

There is indifference between C and D

There is indifference between B and D

LDC's often have a comparative advantage in the production of.

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Primary products

Intermediate products

Manufactured products

Financial services.

Mudaraba business is administered by the Mudaraba companies and Mudaraba rules .

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1990

1980

1981

1978

An indifference curve shows various combinations to goods Which gives the consumer.

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Equal level of utility

Low level of utility

High level of utility

None of these

Ordinal measurement approach was not presented by

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Allen

Hicks

Edge worth

Robbins

A demand switching policy could be.

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Higher interest rates

Higher income tax

Traiffs

Reduced government spending

The single European Act committed_ governments to a ___ in 1992

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European union, single market

Western European, single currency area

European union, single currency area

Western European, single market

The firms long run output decision will be where.

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Long run average cost a lowest

Marginal revenue equals output

Marginal revenue equals long run marginal cost

Marginal cost equals output

Skills that embodied in a person are called.

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Human capital

Embodied skills

Physical capital

Experience skills

Social science research is a systematic method o exploring, analyzing and extend, corrector or verify knowledge of human behavior and.

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Aqua life

Natural life

Social life

Envioment

If the autarky price of S were lower in country A than in country B, then if trade were allowed.

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A would likely exports s to B

A would likely import s from B

Neither country would want to trade

None of the above

If tastes are identical between countries then comparative advantage is determined by

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Supply conditions only

Demand conditions only

Supply and demand conditions

Can't tell without more information.

A decrease in the marginal propensity to import will lead to.

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An increase in GNP

Lower the multiplier

An increase in imports

A decrease in imports

When Daimler Benz maker of the Mercedes bought Chrysler the merger was

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Horizontal

Vertical

Conglomerate

None of these

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

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60

200

250

240

An ethics that treats only humans as morally considerable is called.

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Holism

Eco centrism

Anthropocentrism

None of these

If a country has a linear production possibilities frontier then production is said to be subject to.

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Constant opportunity costs

Decreasing opportunity costs

First increasing and then decreasing opportunity costs

Increasing opportunity costs

If employees cannot accept a job because of the costs of moving this is known as.

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Occupational immobility

Cyclical unemployment

Structural immobility

Geographical immobility

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