Question # 1

The economic logic behind granting central bank's independence from governmental the conduct of monetary policy is.

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To eliminate seignior age

To allow open market operations

To enhance the credibility of monetary policy.

None of the above

The allocation of resources is not efficient it

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The marginal cost of production does not equal society marginal benefit

The distribution is inequitable

Economic growth is low

Unemployment is high

Perfect competition implies

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Homogeneous goods

Inferior goods

Superiors goods

Differential goods

Micro economics is conceded with

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The economy as a whole

The electronics industry

The study of individual economic behavior

the interactions within the entire economy

Why might a country resist globalization.

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Greater choice of final products

Greater choice of supplies

Greater competition for domestic firms

More markets to sell to

The conditions necessary for a firm to be able to price discriminate include.

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Segment able markets

Difference in price elasticity of demand among the segments

The inability of customers to transfer products

All of the above

Devaluation leads to.

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Increase in imports

Increase in exports

Decline in imports

None of the above

The cliche that "the punishment should fit the crime" originated in the writing of.

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Plato

Thomas Aquinas

Jeremy Bentham

David Hume

The determinant of quadratic form is called.

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Jacobian determinant

Hessian determinant

Discriminant

None of these

Which of the following causes M1 demand to decrease.

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A fall in the tax rate

An increase in income

A fall in the interest rate

An increase in the use of credit cards

A firm's long run average total cost lineis

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Identical to its long run marginal cost line

Also its long run supply curve

In fact the average total cost curve of the optimal plant

Tangent to all the curve of short run average total cost

If one country, with floating exchange states, has higher inflation than its competitors, we would expect its exchange rate to.

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Appreciate

Depreciate

Revalue

be in short supply

An increase in consumption at any given level of income is likely to lead to.

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a fall in savings

An increase in exports

A fall in taxation revenue

A decrease in import spending

The term household production refers to

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Output produced by forcing children to work

Output produced by workers who are telecommuting

Services provided directly to households such as lawn mowing by landscape companies.

Output produced at home

A firm's total revenue is Rs. 4,500 when it sells 15 pairs of boots compared to Rs. 4,480 when it sells 14 pairs,. The marginal revenue of the 15th pair of boots is.

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Rs.20

Rs.320

Rs. 4,480

Rs.300

In Balance of payments accounting tourism and travel are classified in the

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Merchandise trade account

Services account

Unilateral transfers account

Capital account

The aggregate demand curve

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Is vertical

Slopes upward

Is horizontal

Slopes downward

In the UK under a _________ of the labour force belong to a trade union.

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Quarter

Third

Half

Three quarters

Which of the following does not apply to pareto efficiency.

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Consumptive efficiency

Productional efficiency

Allocative efficiency

Equity

Research is directed towards the solution of a

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Problem

Hypothesis

data

Survey

Arne Naess related to.

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Political Philosophy

Aesthetics

Eco Philosophy

None of these

In perfect competition the industry will be in equilibrium.

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when all the firms earning abnormal profit

When all the firms earning normal profit

All firms having loss

All firms having proft

The simplest form of rectangular hyperbola is

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y = 1/x

y = x2

y = x-2

y = x3

In closed economic model aggregate demand is not sensitive to.

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Interest rates

Exchange rates

Price level

Tax policy

Productive capacity of agricultural sector due to green revolution

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Remain same

Not effectectd

Increased

Decreased

Budget 2012 -2013 total volume is Rs. _______ billion.

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2,560

2.960

2.760

Noe of these

The long term demand for real money balance will rise when

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the income elasticity of the demand for money is less than unity.

There is a long term increase in the price level

There is a relative increase in the stock of government securities.

Long term market interest rates are falling.

Biocentrism comes under

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Life centrism

Ecologism

Anthropocentrism

Materialism

Which of the following is correct with respect to the Paasche index.

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The consumer Price index is an example of the Paasche index.

The Paasche index is biased upward

The Passche index always exceeds 1

The Paasche index uses given period quantities

If a good has a lot of substitutes, then its demand is.

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Elastic

Inelastic

Unit elastic

Elastic or inelastic depending on whether the price is increasing or decreasing

The costs of inflation are

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Shoe leather costs

Menu costs

Income redistribution

All of the above

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