Question # 1

If there is a prices celling, which of the following is NOT likely to occur.

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Rationing by first come first served

Black markets

Gray markets

Sellers providing goods for free that were formerly not free

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.

If the coefficient of price elasticity is less than one

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It is normal good

It is inferior good

It is luxury good

All of these

If a country an imposes an import tariff its welfare can improve if

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The country is a small country's than a larger country.

Its terms of trade improve enough

The tariff enhances the welfare of its trading partners

Its government's tax revenue increase because of the tariff

Indifference curves shows various combinations of.

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One commodity

Two

Three

All of these

In the theory of the firm profit maximization is always synonymous with.

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Profitability

Economic profit making

maximization of the sales revenue

None of these

If there is a price celling, there will be.

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Shortages

surpluses

Equilibrium

None of these

The nation, that, following currency depreciation, the balance of trade falls for a while before increasing is called a ________ effect.

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Relative price

Elasticity

J- Curve

Pass through

If the coefficient of income elasticity is negative.

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Inferior good

Normal good

Luxury good

All of these

The central bank of a country plays a significant role in her macroeconomics performance by regulating the.

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Money supply

Supply credit

Interest rate

All of these

The warfare effect of a quota depend to a considerable extent upon.

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Who has the quota license

The size of the quota

Elasticities of domestic demand and supply

All of the above

If the % change in quantity demanded is more than % change in price coefficient of price elasticity is.

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>1

<1

=1

=zero

A tariff that probibits imports ahs only

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A revenue effect and redislnbution effect

Revenue effect and protection effect

Consumption effect and production effect

Redistribution effect and consumption effect

The type of business in which an individual has unlimited responsibility for the debts of the organization.

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Partnership

Corporation

Monopoly

None of these

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

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

Negative taxation refers to.

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Tax rebate

Subsidies

Tax evasion

Tax avoidance

Increases in minimum wage

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Helps in controlling unemploymentr

Increases unemploymentr

Reduce wage bill

None of these

If there is a price floor there will be

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Shortages

Surpluses

Equilibrium

None of these

When unintended investment is positive

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Output tends to rise

Output tends to fall

Output is in equilibrium

None of these

Livestock is

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An independent sector

Sub -sector of agriculture

Should be a part of Agriculture

Would become a part of Agriculture

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