Question # 1

If every element of a set B is also an elements of A then

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A is a subset of B

B is a subset of A

A is not a subset of B

B is not a subset of A

For a given positively sloped supply curve the price increase to consumers resulting from a specific tax imposed on sellers will be.

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Greater the more price elastic demand is

Greater the less price elastic demand is

Equal to the entire tax when demand is perfectly elastic

Equal to half of the tax whenever demand is unit elastic

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

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

if A = A , then A is

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Symmetric matrix

Skew symmetric matrix

Identity matrix

Orthogonal matrix

A vertical demand curve for a particular good implies that consumers are.

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Sensitive to changes in the price of that good

Not sensitive to changes in the price of that good.

Irrational

Not interested in that good

Price discrimination occurs when

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A commodity has different elasticity in different markets

Same elasticity in different markets

Unitary elasticity different markets

Noe of these

In long run a reduction in labor supply would cause output to __ and the aggregate price level to.

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fall ; rise

fall ; fall

rise ; fall

rise ; rise

Theories of surplus labor describe that

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In UDCs unemployment rate is high

The margin productivity labor is near to zero

Overpopulation is much more in UDCs

DCs have less uemployment

In an economy, measuring total value (1) added, total value(2) spending on final goods and 3 total factor earning gives the result that.

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3>2>1

3 +2>1

3<2<1

Any measure can be larger or smaller than any other

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

In the Harrod - Domar equation g = s/v , v is defined as.

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the value of the country a capital stock

The ratio of the country's capital stock to its output.

The change in the country's capital stock

None of the above

The expected real interest rate minus expected inflation rate.

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Nominal interest rate minus inflation rate

Nominal interest rate minus expected inflation rate.

Expected nominal interest rate minus inflation rate

Nominal interest rate plus expected inflation rate.

All of the following are type of monetary policy except

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A nominal money stock target

A balances budget

An inflation target

The pursuit of a target real interest rate

the relation of productivity and income is discussed by Nurkse in.

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Vicious circle of poverty

balance growth theory

Unbalance growth theory

Big push theory

Can economic theories be tested.

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No since individuals will seldom respond in predictable ways

Yes, since all individuals respond int he same ways to the same situation.

No , since the general behavior of a large numebr of individuals cannot be predicated

Yes , since people will, on average, respond in predictable ways to changes in costs and benefits.

In the short run an increase in export sales would cause output to ______ and the price level to.

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Rise, rise

Rise,; stay; constant

Fall; rise

fall; stay; constant

The marginal revenue curve in monopoly

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Equals the demand curve

Is a parallel with the demand curve

Lies below and converges with the demand curve

Lies below and diverges from the demeaned curve

A depreciation of currency occur when

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The value of the currency falls

The value of the currency increases

Inflation falls

The balance of payments improves

Should international transpiration costs decrease the effect on international trade would include a.

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Increases in the volume of trade

Smaller gain from trade

Decline in the income of home producers

Decrease in the level of specialization in production.

A supply curve is directly affected by

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Technology

Input costs

Government regulation

All of the above

Expansionary fiscal policy in the classical model will cause aggregate demand to ______ potential output.

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Exceed

Fall below

Fluclaute around

Remain equal to.

The determinant of a matrix and that of its transpose are

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Equal

Zero

One

Negatively related

Ordered Pairs of two sets are called.

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Elements

Function

Cartesian product

None of the above

Compared to the case of perfect competition.

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Monopolist is more likely to

Charge a higher price

Produce a lower quantity of the product

All of the above

The notion of relationship is important is.

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Land ethics

Deep ecology

Deontology

Ecosopy

Which of the following changes shifts the AD curve down and to the left.

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A temporary increase in government purchases.

A rise in the nominal money supply

A decrease in corporate taxes

A decrease in consumer confidence

According to the crowding out effect, a there is a government deficit, the real interest rate will.__________ and investment will_________

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rise ; rise

fall ; rise

rise ; fall

fall ; fall

Elasticity of demand of luxurious goods is always more elastic

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More elastic

Less elastic

Equal elastic

None elastic

The costs of inflation are

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Shoe leather costs

Menu costs

Income redistribution

All of the above

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

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