Question # 1

A stable equilibrium requires that the marginal propensity to consume is.

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Less than zero

Zero

One

None of these

A tariff can________ raise a country's welfare.

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Sometimes

Never

Always

None of these

Indifference curves shows various combinations of.

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One commodity

Two

Three

All of these

If the Federal Reserve wishes to increase the money supply it should.

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Raise the reserve requirement

Raise the discount rate

Buy Treasury securities in the open market

All of the above

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

An indifference curve gives

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the actual combination of goods that consumer chooses

the minimum choice of the consumer

the highest level of satisfaction

None of these

In oligopoly market seller are.

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Few

Four

Some

A large number

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

If a country has linear production possibilities frontier than production is said to be subject to.

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constant opportunity costs

Decreasing opportunity costs

First increasing and the decreasing opportunity costs

Increasing opportunity costs.

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

A tax of 20 cents per unit of imported cheese would be an example of a

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Compound tariff

Effective traiff

Ad valorem tariff

Specific tariff

The locus of equilibrium of consumers due to changes in price of a commodity is known as.

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Price consumption curve

Income consumption curve

Producing possibility curve

None of these

a nation with a current account deficit will be

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Lending more money to other nations

Experiencing a surplus in exports of goods and services.

Reducing its indebtedness to other nations

Going further into debt with other nations

There is positive relationship between multiplier and.

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Marginal propensity to consume

Marginal propensity to save

Marginal efficiency of capital

all of these

Comparative advantage is determined by

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Actual difference in labor productivity between countries.

Relative difference in labor productivity between countries.

both a and b

Neither a and b

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

If the coefficient of income elasticity is negative.

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Inferior good

Normal good

Luxury good

All of these

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 monetary base is composed of.

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Gold and silver

Currency and reserves

Currency only

Currency and checkable deposits

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.

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