Question # 1

If your income doubles and the prices of the goods you buy double, then your demand for these goods will likely

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Increase

Not change

Decrease

Shift

Which of the following does not characterize monopolistic competition.

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Product differentiation

Many producers

Absence of advertising

Some control over price

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

If the coefficient of price elasticity is less than one

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It is normal good

It is inferior good

It is luxury good

All of these

In his description of an idealized city state Plato did not advocate.

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Class specialization

Self regulation of markets

Flat money to facilitate exchange

That all philosopher king rulers embrace communist styles of living.

Primary activities

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Forestry and fishing

Steel and chemical industry

Teachers , doctors

None of these

The theory of ___________ suggests that government can assist domestic companies in capturing economic profits from foreign competitors

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International dumping

Countervailing duties

Strategic trade policy

Export promotion policy

Horizontal integration may lead to internal economics of scale. Which of the following is not a type of internal economy of scale.

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Purchasing

Technical

Financial

Safety

Over time the price of primary products tends to fall because.

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Demand is income elastic

Supply is income elastic

Of outward shifts in supply

Demand is price elastic

Social welfare is maximized when a hedonistic calculus regulates all human action according to the interventionist liberal

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John Stuart Mill

Thorstein veblen

Milton Frideman

Jeremy Bentham

Which does the government not control directly.

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Spending on health

spending on defense

Firm's investment decisions

spending on education

A decrease in fully autonomous investment other things equal shifts the ______ curve to the

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IS ; right

IS ; Left

LM ; Left

LM ; right

Scientific social survey and Research is written by

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Best John

Emory

Bedrove school

P.V. Young

With no government and foreign trade sectors savings always equals.

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Intended investment

Realized investment

Botha a and b

None of these

Which market adjusts the quickest in response to shocks to the economy.

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The asset market

The labor market

The goods market

In the macro economy

A firm can fund an investment from its own sources, the opportunity cost of its investment is

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Less than zero

Zero

More than zero

Neither

As the opportunity cost of a good falls, ceteris paribus the substitution effect implies that people buy

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Less of the good and more of its substitutes

More of that good and less of its substitutes

Less of that good and less of its substitutes

More of that good and more of its substitutes

The opportunity cost of a good is.

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The time lost in finding it

The quantity of other goods sacrificed to get another unit of that good

The expenditure on the good

The loss of interest in using savings

The firms average variable cost of the 150th unit is.

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Rs.15

Rs.17

Rs.20

Rs.9

Domestic borrowing includes the government borrowing through

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National saving center

Commercial banks

State Bank

All of these

A circular constellation of force tending to act and react upon each other in such away to keep a poor country in a state of poverty is termed as.

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Vicious circle of poverty

Low capital formation

Low development

disguised unemployment

In monopolistic competition if firms are making abnormal profit other firms will enter and

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The marginal cost will shift outwards

the demand curve will shift inwards

The average cost will shift downwards

The average variable cost will increase

"Rising productivity does not in itself spell the end of inflation. With enough______ it would still be possible to whip prices into a froth the blank is best filled with.

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Income growth

Unemployment

Money growth

Taxes

What is the average money balance according to the square root rute if income is Rs.1500, each transaction cost is Rs.4, and the opportunity cost of holding money is.2%

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387

50

175

203

A tax of 17 percent per imported item would be an example of a

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Ad valorem tariff

Specific tariff

effective tariff

Compound tariff

In the absence of international capital controls, central banks set ______ to provide the correct incentive for speculators

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Money supply targets

Income policy

Interest rates

Inflation targets

When total utility becomes maximum then marginal utility will be.

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Minimum

Average

Zero

Negative

In a private sector model

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Household saving is a leakage from the circular flow

Investment is a spending injection

All of the above

None of the above

Which theory is generally included under micro economics.

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Price theory

Income theory

Employment theory

None of the above

A primary reason why nations conduct international trade is because.

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some nations prefer to produce one thing while others produce another.

Resources are not equally distributed to all trading nations

Trade enhances opportunities to accumulate profits

Interest rates are not identical in all trading nations

Due to indivisibilities in demand and infrastructure economic development can be achieved.

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Balance growth according to its advocates

Unbalanced growth according to its advocates

Big pus

None of these

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