Question # 1

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

Similar to import tariffs, import quotas tend to result in.

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Higher prices and reduced imports

Increasesed government revenue

Increased consumer surplus

Decrease producer surplus

The funds used for further investment in joint stock company refers to.

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Distributed

Undistributed

Remaining

All of the above

The bowed shape of the production possibilities curve illustrates

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The law of increasing marginal cost

the production is inefficient

the production in unattainable

The demand is relatively inelastic

Which of the following is often considered to be inconsistent with the notion of perfect competition.

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Large number of firms

Free entry

Complete mobility

None of these

If the autarky price of S were lower in country A than in country B, then if trade were allowed.

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A would likely exports s to B

A would likely import s from B

Neither country would want to trade

None of the above

Which trade theory contents that a country that initially develops and exports a new product may eventually become an importer of if ,a nd may no longer manufacture the product.

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Theory of factor endowments

Theory of overlapping demands

Economies of scale theory

Product life cycle theory.

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 supply of foreign currency tends to be

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upward sloping

down ward sloping

Vertical

any of the above

In autarky when a community maximizes its standard of living its production points is.

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Below the production possibility frontier

On the production possibility frontier

Above the production possibility frontier

Can't tell without more information.

The "balance trade" is a record of.

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Exports and imports of financial assets

The current account plus capital account

The export of goods and services.

the value of merchandise exports minus imports

Saving means

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Part of income for investment

Income for boarding

Non consumption of income in the current period

None of the above

Riskless transactions to take advantage of profit opportunities due to a price differential or a yield differential in excess of transaction costa are called

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deferential actions

Cash transactions,

Arbitrage

Forward transactions

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.

Which of the following products will have an elastic demand.

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Flour

Cloth

Honda city

None of these

Which of the following is most likely to benefit a debtor.

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Un anticipated deflation

Anticipated deflation

Unanticipated inflation

anticipated inflation

An increasingly higher marginal income tax is

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Progressive

Regressive

Proportional

Both b and c

In pure competition.

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Strong rivaled exist

Cartels are formed

Both a and b

None of thes

Negative taxation refers to.

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Tax rebate

Subsidies

Tax evasion

Tax avoidance

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)

A change in the full employment quantity of labor_________ the short run aggregate supply curve and ______ the long run aggregate supply curve.

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shifts ; shifts

shifts ; does not shift

does not shift ; shift

does not shift ; does not shift

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