Question # 1

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

In the short run an increase in export sales would cause output to ______ and the price level to.

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Rise, rise

Rise,; stay; constant

Fall; rise

fall; stay; constant

The Eco is a word derived from

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Philo

Economy

Oikos

None of these

In a fixed exchange rate regime, the central bank will intervene by __ pounds to ______ the exchange rate.

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Selling, increase

buying , increase

selling, reduce

both b and c

If the Federal reserve conducts open market __ the money supply __ shifting LM curve to the left.

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Purchases ; decreases

sales ; decreases

purchases ; increases

sales ; increases

Which provide a shorthand summary of data.

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Frequency table

Simple table

Cross table

Two way table

Which of the following changes shifts the AD curve down and to the left.

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A temporary increase in government purchases.

A rise in the nominal money supply

A decrease in corporate taxes

A decrease in consumer confidence

When the period of Rabi crops starts and when it end.

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October - May

January - October

May- October

June - September

The set of all elements belonging to A but not to B is.

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B - A

A - B

A'

B'

Along the long run supply curve all of the following can vary except.

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The level of profits

The number of firms in the industry

Input prices

The level of input usage

If a few firms dominate an industry the market is known as.

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Monopolistic competition

Competitively monopolistic

Duopoly

Oligopoly

(A+B) = (B+A) this law of matrices is known as.

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Cumulative law

Associative law

Distributive law

Identity law

Direct investment and security purchase are classified as.

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Capital account transactions

Current account transactions

Unilateral transfer transactions

Merchandise trade transactions

The relationship between the exchange rate ad the prices of tradable goods is known as the.

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Purchasing power parity theory

Asset markets theory

Monetary theory

Balance of payments theory

If A is a square matrix of order ' n' and lis the unit matrix of the same order then A 1 is equal to.

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A

1A

1

Both a and b

A monopolist who is charging high price operates on.

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inelastic part of demand curve

Elastic demand of part curve

Ignore elasticity

More elastic demand of part curve

The average variable cost curve.

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Is derived from the average fixed costs

Converges with the average cost as output increases

Equals revenue minum profits

Equal the total costs divided by the output

Suppose the demand curve for a good shifts rightward, causing the equilibrium price to increase this increase in the price of the good results in.

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A rightward shift of the supply curve

An increase in quantity supplied

A leftward shift of the supply curve

A leftward movement along the supply curve

The difference between what consumers have to pay for a particular and what they are willing to pay is known as.

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Consumer surplus

Producer surplus

Dead weight costs

Dead weight surplus

According to Keynesian macro economics price adjust _____ to shocks, so the government should.

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Slowly ; do little

Rapidly ; do little

Rapidly ; fight recessions

Slowly ; fight recessions

Rapid increases in the price level during periods of recession or high unemployment are known as.

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Slump

Stagnation

Stagflation

Inflation

According to solo growth model capital and labor are.

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Not substitution of each other

Substation of each other

Substation in a way

All of these

Cardinal approach theory was presented by

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Marshall

Adam smith

Robbins

Hicks

An indifference curve gives

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the actual combination of goods that consumer chooses

the minimum choice of the consumer

the highest level of satisfaction

None of these

The world narrative derived from Latin verb

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Quantitative research

Qualitative research

Descriptive research

Experimental

The money multiplier is 4, and the money creating potential of the banking system is Rs. 40,000,000. The legal reserve ratio and the excess reserves are.

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40 percent and Rs. 4,000,000

40 percent and Rs. 10,000,000

25 percent and Rs. 2.500,000

25 percent and Rs.10,000,000

In the short term a firm will produce provided the revenue

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Covers fixed costs

Covers variable costs

Covers total costs

Covers revenue

The appropriate expenditure switching policy to correct a balance of payment surplus is.

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Currency revaluation

Currency devaluation

Expansionary monetary policy

Contractionary fiscal policy

How do the banks gain from this corporate behavior.

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More loans can be made

Tax free profits can be made

Interest rates can be increased

By circumvent banking regulations

Ordinal measurement approach was not presented by

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Allen

Hicks

Edge worth

Robbins

If there is a price floor there will be

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Shortages

Surpluses

Equilibrium

None of these

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