Question # 1

A feasible effect of international trade is that a

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Monopoly in the home market become an oligopoly in the world market

Oligopoly in the home market becomes a monopoly in the world market

Purely competitive firm in the home market becomes an oligopolistic

Purely competitive firm in the home market becomes a monopolist

An increase in money _______ shifts the LM curve to the _____ causing the interest rate to fall and output to rise

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demand ; right

demand ; left

supply ; right

supply ; left

Suppose taht an exise tax is imposed on the monopolist's product if the monopolist's marginal cost is horizontally the relevant range, which of the following statements must be true.

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The price will increase by an amount less than the tax

The price will increase by an amount equal to the tax

The price will increase by a amount greater than tax

The price may either increase or decrease

The equilibrium price clears the market it is the price at which.

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Everything is sold

Buyers spend all their money

Excess demand is zero

c and d

The application of the trickledown effect policy in 1960s was resulted in.

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Increase income disparity

Increase income poor

Decrease income disparity

Equal distribution of income

How much of the Rs.5 billion dollar increase in government expenditures will be recouped in taxes.

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Rs.1 billion

Rs.2 billion

Rs.0.9 billion

Rs.0.5 billion

For a competitive firm the demand curve

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A horizontal

Coincides with the marginal revenue curve

Coincides with the average revenue curve

All of the above

Which of the following rights be a scarce good.

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Love

faith

Self control

All of above

The income elasticity of inferior goods is

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Zero

Positive

Negative

Unitary

The relation ship between the exchange rate and 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

An increase in the money supply other thighs equal shifts the ______ curve to the

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IS ; right

Is ; left

LM ; Left

LM ; right

For a given positively sloped supply curve the price increase to consumers resulting from a specific tax imposed on sellers will be.

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Greater the more price elastic demand is

Greater the less price elastic demand is

Equal to the entire tax when demand is perfectly elastic

Equal to half of the tax whenever demand is unit elastic

When a person received an increase in wealth, what is likely to happen to consumption and saving.

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Consumption increase and saving increases.

Consumption increases and saving decreases

Consumption decreases and saving increases

Consumption decreases and saving decreases

Which of the following are function of inferential statistic.

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Estimation

Testing of hypothesis

both a and b

None of these

To help developing nations strengthen their international competitive rises many industrial nations have granted non nations udder the .

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International commodity engravement's program

Multilateral contract program

Generalized system of preferences program

Export led growth program

Research design indicate a plan of action to be carried out in connection with a proposed.

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Research proposal

Research methodology

Research abstract

Research work

The Isoquant curve shows different combinations of two factors of production which give the producer.

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Different level of output

High level of output

low level of output

Same level of output

If the reserve deposit ratio is 0.25 and the ratio of currency in circulation to deposits is 0.3, the potential money multiplier will have a value of.

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2.36

0.42

1.20

0.96

Factors that cause the IS curve to shift include.

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Changes in autonomous consumer spending

Changes in government spending

Changes in investment spending related to business confidence

All of the above

The concept of "Interdependence of markets" can refer to the interdependence between.

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Two or more factor markets

Goods and factor markets

Goods markets

All of the above

A reflationary policy

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Increases aggregate supply

Increases aggregate demand

Decreases the price level

Increase full employment

Fiscal policy is purposeful movements in _____designed to direct an economy

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Interest rate

Legal structures

Government regulations

D Government spending and taxes

If the price level for an economy was 100 in 1984 , 115 in 1985 and 125 in 1986 the rate of inflation between 1985 and 1986 was.

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105

8%

8.7%

17.5%

When capital mobility is perfect, interest rate differentials will tend to be offset by

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Price differences.

Balance of payments differences.

Current account differences.

Expected exchange rate changes

The primary function of a bank is to.

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Control the money supply

Provide notes and coins for trade

Make a profit

Provide a chequeen clearing system.

One of the transmission mechanism of monetary policy is through consumer house hold wealth.___________ and consumption.

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rise, increases, increases

rise, falls, increases

rise, increases, falls

rise, falls, falls

Any combination of products inside the production possibility frontier is

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Allocatively inefficient

X inefficient

Consumer inefficient

Productively inefficient

If marginal product is below average product.

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The total product will fall

The average product will fall

Average variable costs will fall

Total revenue will fall

In the Keynesian model in the short run a decrease in government purchases causes output to _____ and the real interest rate to.

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fall ; rise

fall ; fall

rise ; rise

rise; fall

In Islamic economic system following means of gaining wealth are permitted

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smuggling

Hoarding

Gambling

None of these

Who was the social theorist tha proposed socialism a should serve as an intermediate stage on the way to an ideal communist society.

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Karl Marx

William Domhoff

Erik wright

Wright mills

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