Question # 1

If an economy experience an increase in productivity it means that.

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the level of output has risen

Employees are working harder than before

Output per unit of input has risen

Technical change has taken place

Which of the following would most likely shift the production possibilities curve for a nation outward.

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A reduction in unemployment

An increases in the production of capital goods

A reduction in discrimination

An increase in the production of consumer goods

The effect of the most favored nation clause is to

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Eliminate at tariffs between countries.

Increase all tariff rates between countries

Maintain a nondiscriminatory structure of tariffs

Marlein a discriminatory structure of tariffs.

Which of the following IS a function of money.

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Medium of exchange

Store of value

Unit of accounting

All 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

Currency speculations is_________ if speculators bet against market forces that cause exchange functions, thus moderating such fluclutions.

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Destabilizing

Stabilizing

Inflationary

Deflationary

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

According the Keynes when the great depression started , the government should have.

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Done nothing

Decreased the money supply

Had a large increase in government spending.

Enacted high tariffs, such as the smoot Hawley tariff

In the cost of slugger rises and slugger is major ingredient in jelly beans then the jelly bean.

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Demand curve shifts to the left

Supply curve shifts to the left

Supply curve shifts to the right

Demand and supply curves both shift to the right

The central economic problem in an economy refers to.

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The prevalence of unemployment

To allocate scarce resources between competing uses.

Consumers having less money than they would like

ensure that production costs are converted by sales revenue.

Suppose that the supply curve of lin is highly inelastic if the demand curve of lin decreases and increases cyclically along the supply curve of lin then in this market the size of the quantity fluctuations will be _____ the size of the price fluctuations.

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Relatively greater than

Relatively less than

the same as

Any of the above

In the short run an increase in the quantity of money ______ real GDP and _ the price level.

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increases ; raises

does not change ; lowers

decreases ; raises

decrease ; lowers

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

Which industrialization policy have developing countries used which places emphasis on the comparative advantage principle as agued rto resource allocation.

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Export promotion

Import substitution

International commodity agreements

Multiateral contracts

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.

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

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 agricultural price support program is an example of.

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A price celling

A price floor

Equilibrium pricing

None of these

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

With no government and foreign trade sectors savings always equals.

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Intended investment

Realized investment

Botha a and b

None of these

Two commodities are considered to be perfect substitutes for each other if the elasticity of substitution is

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Positive

Negative

Infinite

None of these

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