Question # 1

Demand pull inflation may be caused by

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An increase in costs

A reduction in interest rate

A reduction in government spending

An outward shift in aggregate supply

Monetary policy is concerned with influencing.

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The general level of money wages

The level of government expenditure

The price and availability of money

The level of shares on the stock market

The econometric problem of errors in variables leads to

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Ballasted estimates of regression coefficients.

Autocorrelation

Unbiased estimates of regression coefficients but non minimum variance of estimated coefficients.

None of the above

The school of deep ecology was founded by

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J.S.Mill

Kant

Naes

Aristotle

A nation wishing to reduce its current account deficit would be advised to.

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Engage in more government spending.

Reduce government taxes

Increase private investment spending

Decrease domestic consumption spending

The yield curve shows

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The yields on stocks of different maturities

The interest rates on bonds of different maturities.

The yields on stocks with differing default risk

The yields on bonds with differing default risk

Research is directed towards the solution of immediate , specific and practical problem is called.

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Basic

Applied

Diagnostic

Descriptive

When total utility becomes maximum then marginal utility will be.

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Minimum

Average

Zero

Negative

Which of the following is not an important variable in growth accounting calculations.

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Productivity growth

Money supply growth

Labor growth

Capital growth

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

Which policy is an expenditure switching policy.

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Increase in the money supply

Decrease in government expensitures

Increase in business and household taxes

Decrease in import tariffs

Which of the following is NOT an example of non price competition the auto industry.

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Zero percent auto loans

Television advertising

Establishing market niches

End of the year discounts

A consumer is said to be in equilibrium when the marginla utility and price of a commodity

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More

Less

Irrelevant

Equal

Macro economics is the study of.

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Individual building blocks in the economy

The relationship between different sectors of the economy

Household purchased decisions

The economy as a whole

Industrial policies intended to foster comparative advantage for domestic industries could result in the implementation of.

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Research and development subsides.

Loan guarantees

Low interest rate loans

All of the above

Marginal revenue is the ________ when output is.

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Change in average revenue, inversed.

change in total revenue, increased by one unit

change in average revenue, increased by one unit

Change in total revenue, incresed.

It enables the researcher to relate logically known facts to intelligent guesses about unknown conditions.

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Research design

Hypothesis

Pre-Test

Pilot study

Price equal to.

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Total revenue -quantity

Total revenue/quantity sold

total quantity sold * quantity sold

Total revenue/total cost

All the UDCs of the world are homogeneous is broad sense and.

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Heterogeneous in narrow sense

Homogenous in narrow sense also

Homogenous in human resources

Homogenous in natural resources

The purpose of fiscal policy is to

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Alter the direction of the economy

Change people's attitudes toward governemnt

Educate people as to the importance of economics

Offer insight into the way thing work

An increase in spending those results from expansionary _______ policy cause the interest rate to.

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fiscal ; rise

fiscal ; fall

incomes ; rise

income ; fall

Find the change in revenue to the industry due to the taxs.

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Rs. 40 billion

Rs. 34 million

Rs.25 million

Rs.36 Million.

An advocate of the classical model of the economy would claim that unemployment a created when the ___________ is above its equilibrium level in the.

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Price level, agregate economy

Tax rate, government ebudget

Wage rate, labour market

Interest rate, market for loanable funds

Drawing conclusion from the data collected is called.

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Analysis

Organization

Tabulation

Interpretation

If the price is less than the average cost but higher than the average variable costs.

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The firm is making a loss and will should own in the short term.

The firm is making a profit.

The firm is making a loss but will continue to produce in the short term

The firm is making a loss and is making a negative contribution to fixed costs

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

The socially optimal rate of growth is

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Zero

Negative

Where the marginal social benefit the marginal social cost

total social costs are minimized

If B is a subset of A ,then A is a

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Super set of B

Sub set of B

Empty set of B

Universal set of B

A business cycle refers to.

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Fluctuations in the general price level

changes in the long term growth pattern of the CPI

The ups and downs of real GDP

Fluctuations in the level of corporate.

During the early years of the Great depression there was a significant decrees n the the money supply that causes. the ______ to shift____

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IS ; Leftward

IS ; rightwards

LM ; Leftward

LM ; rightward

The difference between a country's balances of payments and its balance of international indebtedness.

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Is equal of official reserve transactions

Occurs because of foreign exchange fluctuations

Reflects statistical discrepancies

Reflects the difference between flow and stock concepts

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