Question # 1

All economic model ae based on

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Realistic assumptions

Assumptions which can never be perfectly realistic

Unrealistic assumptions

None of the above

Which of the following products will have an elastic demand.

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Flour

Cloth

Honda city

None of these

The goal of a pure market economy is to best meet the desires of

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Consumers

Companies

Workers

The government

The overall Budget Deficit is financed from

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External borrowing

Non bank borrowing domestically

Bank borrowing plus the above two at a and b

None of the above

Quotas are government imposed limits on the ________ of goods trade between countries.

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Prices

Quantity

Revenue

Costs

Which of the following is a component of M1.

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Saving deposit

Credit card

Checkable deposit

Gold

A depreciation of the dollar will have its most pronounced impact on imports if the demand for. Imports is.

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Constant

Inelastic

Elastic

Unitary elastic

The productivity curve

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Is given by the labor productively

Shows the change in real GDP per hour of labor as the amount of capital per hour labor changes

Shows the change in technology

Is given by the equation Y = F ( L,K, T)

The Hocksher Ohlin model rules out the classical model's basis for trade by assuming that. _______ is identical between countries.

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Factor endowments

Factor intensities

Technology

Opportunity costs

A purely monetary explanation of the business cycle is proposed by

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Hawtrey

Schumpeter

Hansen

None of these

Monopoly market is characteristics by

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A large number of sellers

Only one seller

Thousand of seller

All of these

A market is in equilibrium when

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Ac = P

MC = MR

AC =AR

TC =TR

Negative taxation refers to.

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Tax rebate

Subsidies

Tax evasion

Tax avoidance

In the circular flow diagram firms.

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Receive revenue and supply resources in the resource market

Incur costs and demand resources in the resource market.

Receive revenue and demand resources in the product market.

Incur costs and supply goods and services in the product market.

In the balcne of payments, travel and tourism are included int he category of.

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Unilateral transfers

Capital account

Merchandise account

Services account

Devaluation leads to.

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Increase in imports

Increase in exports

Decline in imports

None of the above

A supply schedule shows the relations between the quantity supplied of a commodity over a given time and.

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Factor prices

Technology

Both a and b

The price of the commodity

The arrangement were goods imported from trading partners in the developing world are subject to lower tariff rates than good from other countries is referred to as.

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Normal trade relation status.

Most favored nation status

Generalized system of Preferences.

Offshore assembly provisions

Accordant the wealth effect , an increase i the price level _______ real wealth and ____ consumption expenditure.

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Increase, Increases.

Increases ; decreases

decreases ; increases

decreases ; decreases

the theory of overlapping demands predicts that trade in manufactured goods is unimportant by countries with very different .

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Tastes and preferences.

Expectations of future interest rate levels

Per capita income levels

Labor productivities.

The law of demand states that

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As the quantity demanded rises, the price rises

As the price rustiest he quantity demined rises

As the price rises, the quantity demanded falls

As supply rise, the demand rises

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