Question # 1

If there is no price surprise, total output is.

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50

150

400

200

An increases in the demand curve for orange juice would be illustrated as a.

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Leftward shift of the demand curve

Right ward shift of the demand curve

Movement up along the demand curve

Movement down along the demand curve

An increase in the price of a complement or produce.A would.

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Shift demand for product a out wants

Shift demand for product A inwards

shift supply for product A out wards

Shift supply for product A inwards

On a graph a positive linear relation ship.

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Moves down to the right

Moves up to the left

Moves up to the right

Modes down to the left

The concept of the intuition of deep ecology is related to.

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Kant

Warwick fox

Spinoza

All of these

What happens to the money supply if the deficit is financed by selling bonds to the central bank.

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The money supply increases

The money supply decreases

The money supply is unaffected

We cannot tell what will happen to the money supply

When there is a surplus in a market

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There is downward pressure on price

There is upward pressure on price

The market could still be in equilibrium

There are too many buyers chasing too few goods.

Aggregate demand without a foreign sector is the sum of.

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c+1

C+G

1+G

C+!+G

The mathematical theory of probability has helped to form the.

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Statistical theory

Law of inertia of large numbers

Law of statistical Relativity

Law of statistical Regularity

Nationalism, self sufficiency, and imperial power were central concerns of.

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French physiocrats

Thomas Malthus

Mercantilists

Adam Smith

If the home country government grants a subsidy on a domestically produced good domestic producers lend to.

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Capture the entire subsidy in the form of higher profits

Increases their level of production

Reduce wages paid to domestic workers

Consider the subsidy as an increase in production cost

Under a fixed exchange rate system an expansionary fiscal policy leads to a

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Trade account deficit and a capital account surplus.

Trade account deficit and a capital account deficit

Trade account surplus and a capital account surplus

Trade account surplus and a capital accoundt deficit

Which of the following NOT a source of economic growth.

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Investment in new capitals

Labor productivity

Investment in human capital

Technology advances

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

AB = BA = 1 , then B is said to

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Ad joint of matrix of A

Inverse matrix of A

Determinant of A

Cofactor of a

When internal economics of scale occur

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Total costs fall

Marginal costs increase

Average costs fall

Revenue falls

The law of demand states that.

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As the quantity demanded rises, the price rises.

As the price rises the quantity demanded rises

As the price rises, the quantity demanded falls.

As supply rises, the demand rises.

A fixed exchange rate, plus perfect capital mobility _______ the scope for monetary policy.

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Enhances

Undermines

Encourages

Facilitates

A decline in the value of the rupee makes Pakistan goods cheaper relative to foreign goods, resulting in a _________ in net exports and a ________shifts of the IS curve.

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fall ; leftward

rise ; leftward

fall ; rightward

rise ; rightward

Capitalism refers to

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the use of markets

Government ownership fo capital goods

Private ownership of capital goods

Private ownership of homes and cars

Naveed purchases product M for which his income elasticity of demand is negative Apparently product M is.

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A necessity

An independent good

An inferior good

A luxury good

If one car company takes over another car company this is an example of which type of integration.

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Vertical

Horizontal

Conglomerate

Literal

For any square matrix A of order 'n' a +A is.

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Skew symmetric

Non skew symmetric

Symmetric

Non symmetric

The purpose of making assumptions in economic model building is to.

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Force the model to yield the correct answer

Minimize the amount of work an economist must do

simplify the model while keeping important details.

Express the relationship mathematically.

Labour has the following characteristics accept one.

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It cannot be separated form labourer

It cannot be stored

Its supply cannot be increase at once

Bargaining power of laborer is very strong

The exchange rate system that best characterizes the present international monetary arrangement used by industrialized countries is.

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Freely fluctuating exchange rates

Adjustable pegged exchange rates

Managed floating exchange rate.

Pegged or fixed exchange rates

An increase in the expected future marginal product of capital would cause the IS curve to.

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Shift up and to the right

Shift down and to the left

Remain unchanged if firms face borrowing constraints otherwise shift down and to the left

Remain changed

If an increase in the price of gasoline increases the demand for gas hybrid cars, then

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Hybrid cars are an inferior good

Gasoline and hybrid cars are complements in consumption

Gasoline is an inferior good

Gasoline and hybrid cars are substitutes in consumption

Economic development in UDCs is not possible without.

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Foreign aid

Capital formation

Natural resources

Domestic saving

Weighted monetary aggregates

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Ignore the fact that some assets are more money like than others.

Are constructed by simply adding up the outstanding amounts of various types of asssets

Give greater weight to currency than to savings deposits

Value coins more than currency.

___________ are quotas that lead to a complete abolishment of trade.

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Nontariff barriers

Embargoes

Voluntary export restraints

Orderly marketing agreements

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