Question # 1

An increase in aggregate demand is more likely to lead to demand pull inflation if.

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Aggregate supply is perfectly elastic

Aggregate supply is perfectly inelastic

Aggregate supply is unit elastic

Aggregate supply is relatively elastic

A current account surplus implies that

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The country is a net lender to the rest of the world

The country is running a net capital account surplus

Foreign investment in domestic securities is at very low levels

All of the above

During the financial year 1999-2000 the tax yielding the largest revenue for the Federal Government was.

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Income tax

Value added tax

Excise duty

Customs duty

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 recording of the data is dome on the basis of the scheme.

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coding

Tabulation

Classification

Analysis

The very word statistics refers to.

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State craft

Science of state

Political state

Political craft

A question which requires a solution is.

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Observation

Problem

Data

Experiment

Top footballers land to earn more than lecturers because.

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Footballers give more entertainment

Lecturers are lazy

The labour markets are imperfect

Top footballers are relatively scarce in relation to lecturers

During periods of rising inflation and rising interest rates we expect the demand for real cash to.

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rise

fall

not change

fluctuate

The long run aggregate supply curve

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Is vertical

slopes upward

Is horizontal

Slopes downward

Land will be allocated between competing uses so that.

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Housing gets priority

Industry gets priority

Faming gets priority

The equilibrium rental rate equilibrium total demand with supply

When one country provides most favored nation status for another if agrees to.

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Change that nation's product a lower tariff than any other nations

Charge that nation's products a tariff rate no higher than that on any other nation.

Charge that nation's products a higher tariff than any other nation's

Export to that nation any products that it wants to purchase

If the monopolist maximizes profits when marginal revenue equals marginal cost equals average cost economic profits must be.

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Negative

Positive

Zero

Either a or c

Social science research is a systematic method o exploring, analyzing and extend, corrector or verify knowledge of human behavior and.

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Aqua life

Natural life

Social life

Envioment

A public good will

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Be underprovided in the free market

Be overprovided in the free market

Not be provided in the free market

Has no opportunity cost

According to the law of diminishing utility.

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Utility is at a maximum with the first unit

Increasing units of consumption increase the marginal utility

Marginal product will fall as more units are consumed

Total utility will rise at a falling rate as more units are consumed

The opportunity cost of a student is.

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Course fees and rent

A loan from the bank

What the student could have earned in the best job available by not studying.

What the student will earn after graduation.

If equilibrium national income is less than the full employment the gap can be closed by.

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Raising taxes

Decreasing government expenditures

Raising taxes and decreasing government expenditures.

Increasing government expenditures.

In a free market

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Government intervene

Government plan production

Government interfere

Price adjust to reconcile scarcity and desires.

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

Which of the following is correct for the demand and supply schedules given above.

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The demand curve is non linear

The slope of the supply curve is 4

Equilibrium quantity is 40 units

The slope of the demand curve is 0.5

The farming in which farmers grow only enough food to survive food to survive is called.

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Cultivation

Farm mechanism

Substance farming

None of these

The slope of a horizontal line is.

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One

Zero

Three

two

A firm charges Rs. 800 for its unique word processor. If total revenue is Rs. 56,000 in July, how many word processor were sold that month.

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70

95

700

800

As long as the principle of diminishing marginal utility is operating any increased consumption of a good.

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Lowers total utility

Produces negative total utility

Lowers marginal utility and therefore total utility

Lowers marginal utility, but may raise total utility.

Which does the government not control directly.

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Spending on health

spending on defense

Firm's investment decisions

spending on education

The reason that only final sales are counted in GDP is

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To avoid double counting good that are sold so as to be resold

To not count production in other countries

Because the government can't get records on intermediate sales.

To simplify the computation and no other reason

Cross -elasticity following commodities is very high

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Compliments

Normal

Goods substitutes

Good compliments

The variable that stands alone on the left hand side of the equation such as y = 2x + 1 is known as.

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Dependent variable

Independent variable

Endogenous variable

Explained variable

Second step in problem formulation is

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Statement of the problem

Understanding the nature of the problem

Survey

Discussions

The supply of foreign currency tends to be

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upward sloping

down ward sloping

Vertical

any of the above

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