Question # 1

The contractionary effect on private investment spending due to financing requirements of government deficit pushing up interest rates is known by this term.

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Crowding out

Recognition lag

Public sector borrowing requirement

Fiscal drag

International trade in goods and services tends to

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Increase all domestic costs and prices

Keep all domestic costs and prices at the same level

Lessen the amount of competition facing home manufactures.

Increase the amount of competition facing home manufacturers

In the short run, the supply of capital is _______ and in the long run iwll depend on.

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Variable technology

Fixed, expectations

Fixed, rental rate of capital

Variable, interest rates.

Economic growth is shown on the production possibility frontier as.

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The curvature of the PPF

An inward shift in the PPF

An outward shifts in the PPF

A movement from one point on the PPF to another

If the "Regulated -market" price is below the equilibrium price.

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The quantity demanded will be greater than quantity supplied

Demand will be les than supply

Quantity demanded will be less than quantity supplied

Quantity demanded will equal quantity supplied

Which of the following could be a reason for the problem of lack of jobs being overestimated.

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the existence of disguised unemployment

People are underemployment

People holding only one job

The existence of child labour

The equation for the LM curve is.

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Y = 100 -50 i

Y = 50 + 50 i

Y = 50 - 80 i

Y = 80 + 50 i

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

Which industrialization policy has developing countries used which places emphasis on the comparative advantage principle as a guide to resource allocation.

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Export promotion

Import substitution

International commodity agreements

Multilateral contrracts.

"Human Welfare is the subject of Economics" Y. This statement is associated with the name of which of the economists.

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Marshall

Pigou

Pension

All of the above

Who among the following is a proponent of bio centrism

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Aido Leopoid

Arne Naess

Paul Taylor

None of these

If there is a price floor there will be

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Shortages

Surpluses

Equilibrium

None of these

Ad valorem tariffs are collected as.

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A percentage of the price of the product

A percentage of the quantity of imports

All of the above

Fixed amounts of money per unit traded

The product cycle theory of trade is essentially a

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Static short run trade theory

Dynamic, long run trade theory

Zero sum theory of trade

Negative sum theory of trade

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

During period of inflation

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Those people who have fixed incomes benefit

Every one's real income falls

those people who enter long term wage agreements benefit

Those people whose real income rises faster than the general price level benefit

Game theory

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Firm are assumed to act independently

Firms are assumed to cooperate with each other

Firm collude as part of a cartel

Firms consider the actions of others before deciding what to do.

An autonomous rise in __________ note causes by a change in the price level aggregate output of the interest shifts the _________ curve to the

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Net exports LM right

Net exports LM left

Money demand IS right

Money demand LM left

If the rate of growth of a full employment labor forc eis 1.55 and 2.55 then the celling rate of growth of real GNP, according to Hick's theory of a constrained business cycle,is.

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1.5 %

2.55

4.0%

1.7%

Which is the most volatile component of aggregate demand.

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Net exports

Consumption

Investment

Government spending

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 tax cut __ disposable income _____ consumption expenditure and shifts the IS curve to the.

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Increases ; increases ; right

Increases ; decreases ; left

decreases ; increases ; left

decreases ; decreases ; right

The Eco is a word derived from

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Philo

Economy

Oikos

None of these

Economists tend to disagree primarily about.

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The implications of scarcity for our economy

Which resources are free

Topics in positive economics

Issues of normative economics

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

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October - May

January - October

May- October

June - September

Less Developed countries lend to have

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A high average age

A slow population growth rate

High life expectancy

A low literacy rate

If matrix A is of m x n dimension, then A will be

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n x m dimension

m x n dimension

n x p dimension

m x m dimension

In the Keynesian model in the long run an increase in the money supply will raise

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The price level but not the level of output

The level of output but not the price level

Both the level of output and the price level

Neither the level of output nor the price level

Current account deficits are offset by

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Merchandise trade deficits

Merchandise trade surpluses

Capital /financial account surpluses

Capital /financial account deficits

Which of the following strategies have developing countries not used to deal with the problem of unstable expert markets.

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Multilateral contracts

Production and export controls

Buffer stock arrangements

Tariff rate quotes

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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