Question # 1

If a Set C contain all the elements which are present in both the set A and B then set C is called.

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Union of A and B

Intersection of A and B

Complement of A

Complement of B

Aggregate demand will increase if

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Consumption falls

Investment falls

Exports fall

imports fall

A market is in equilibrium when

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Ac = P

MC = MR

AC =AR

TC =TR

Perfect price discrimination means that every customer.

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Buys the same amount

Pays the same price

Pays what she thinks the product is worth

Contributes the same revenue.

The Root Mean square Error for the actual sales and sales forecast for 1985 and 1986 is.

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20.2

19.9

14.7

17.2

The equation for the IS curve is.

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Y = 55 - 50 i

Y = 175 - 75 i

Y = 300 - 100 i

Y = 275 - 25 i

In case of complimentary goods, if the price of one commodity falls there will be.

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Rise in demand of other commodity

Fall in demand of other commodity

Fall is demand of both commodities

Nor charge

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

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Horizontal

Vertical

Conglomerate

None of these

The multiplier is the reciprocal of A

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Marginal propensity to consume

Both MPF and MPS

Marginal propensity to save

None of these

If saving rate is 12.0% , ICOR value is 3% and population Rate is 2.0% then the Growth Rate would be.

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2.0%

3.65

4.0%

6.0%

With a positive externality

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There is under consumption in the free market

There is over consumption in the free market

The government may tax to decrease production

Society could be made off if less was produced

Which of the policies in the table above an increase in social welfare according to pareto efficiency.

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Policy A

Polies A and B

Policies A and D

Policies C a, -d D

In the Keynesian corss diagram, and cline in autonomous consumer expenditure causes the aggregate demand function to shift down the equilibrium level of aggregate output to___________ and the IS curve to shift to the.

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up ; left

up ; right

down ; left

down ; right

The retail price index is used to.

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Construct price lists

Compare shop prices

Measure changes in the cost of living

None of the above

Which of the following is not an argument for protectionism.

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To protect infant industries

To increase the level of imports

To protect strategic industries

To improve the balance of payments

Equilibrium price is a price at which

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Quantity demanded is equal to quantity suppled

Quantity demanded minus quantity supplied is zero

quantity demanded = quantity supplied

All of these

When an increase in government spending is matched by an equal decrease in government transfers the income level will.

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Stay the same

Increase

Decrease

None of these

It enables the researcher to acquaint himself with current knowledge in the field in which he is going to conduct his research.

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Social survey

Research proposal

Review of literature

Research design

A profit maximizing firm will employ labour up to the point where.

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Marginal revenue = Marginal product

Margial cost = Marginal product

Marginal revenue product = Average cost of labour

Marginal revenue product = Marginal cost of labour

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.

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Standard error of the mean

A type II error

A type I error

The error probability

The view which allows only use value ot nature is known as.

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Deep ecology

Shallow ecology

Life ecology

None of these

A contraction in supply occurs when

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Demand shifts out wards

The supply curve shifts inwards

The quantity supplied falls when the price falls

The supply curve shifts outwards

General agreement on Tariffs and Trade was established in.

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1948

1949

1950

None of these

Which of the following is not an important variable in growth accounting calculations.

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Productivity growth

Money supply growth

Labor growth

Capital growth

The investment demand curve shifts right ward if

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The real interest rate falls

Savers increase their thriftiness

The expected profit rate increases.

The economy moves into a recession

Who is regarded as the founder of theory of sets.

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Adam Smith

Karl Frederich Gauss

George cantor

Euller

Between 1982 and 1985 prices increased by

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11.4%

25.2%

14.5%

3.6%

Government may contribute to inflationary pressure on account of building up large.

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Numbers of employees

Welfare plans

Budget deficits

Expenditure.

A nation wishing to reduce its current account deficit would be advised to.

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Engage in more government spending.

Reduce government taxes

Increase private investment spending

Decrease domestic consumption spending

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

If Federal reserve conducts open market sales, the money supply ___ shifting the LM curve to the_____

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decreases ; right

decreases ; left

Increases ; right

Increase ; left

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