[{"id":213839,"question":"The estimated regression coefficient for good Y indicates","choices":[{"text":"Goods X and Y are independent goods","value":"A"},{"text":"Good Y is relatively elastic","value":"B"},{"text":"Good Y is a luxury good","value":"C"},{"text":"Goods X and Y are complementary goods","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213838,"question":"Which of the following methods is used for internalizaing positive externalities","choices":[{"text":"Positive taxes","value":"A"},{"text":"Government exchange of property rights","value":"B"},{"text":"Effluent fees","value":"C"},{"text":"Corrective substidies","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213837,"question":"The equation for a givne production function is Q = K2 + KL, initially K = 2 and L = 1 if the value of both inputs is doubted the production function exhibite.","choices":[{"text":"Increasing returns to scale","value":"A"},{"text":"Diseconomies of scale","value":"B"},{"text":"Constant returns to scale","value":"C"},{"text":"Economies of scale","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213836,"question":"What is the average money balance according to the square root rute if income is Rs.1500, each transaction cost is Rs.4, and the opportunity cost of holding money is.2%","choices":[{"text":"387","value":"A"},{"text":"50","value":"B"},{"text":"175","value":"C"},{"text":"203","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213835,"question":"The long run foreign exchange rate between the U.S. and Japan is 200 Yen =Rs. 1 under a floating exchange rate Which of the following does 112 t occur if the Federal Reserve reduce the money supply in order to prevent the occurrence of inflation.","choices":[{"text":"Foreign capital flows to the U.S.","value":"A"},{"text":"The U.S. dollar appreciates","value":"B"},{"text":"Real net exports decline","value":"C"},{"text":"American real GNP experience a slower rate of growth","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213834,"question":"If the rate of growth of a full employment labor forc eis 1.55 and 2.55 then the celling rate of growth of real GNP, according to Hick's theory of a constrained business cycle,is.","choices":[{"text":"1.5 %","value":"A"},{"text":"2.55","value":"B"},{"text":"4.0%","value":"C"},{"text":"1.7%","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213833,"question":"The impact of contractionary fiscal policy, according to new classical theory is that.","choices":[{"text":"Real interest rates do not change","value":"A"},{"text":"Aggregate demand increase","value":"B"},{"text":"Current real output substantially decreases","value":"C"},{"text":"The price level substantially increases.","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213832,"question":"The short run impact of unanticipated expansionary monetary policy is that.","choices":[{"text":"Real output decrease","value":"A"},{"text":"Employment decreases","value":"B"},{"text":"Real interest rates decrease","value":"C"},{"text":"Profit margins decrease","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213831,"question":"When equilibrium in the money and goods markets occurs at a rate of interest below the BP schedule internal and external equilibrium for the United States can he achieved by.","choices":[{"text":"Expanding the U.S. money supply","value":"A"},{"text":"Increasing government spending","value":"B"},{"text":"Increasing taxes","value":"C"},{"text":"Lowering interest rates in the united states.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213830,"question":"The Root Mean square Error for the actual sales and sales forecast for 1985 and 1986 is.","choices":[{"text":"20.2","value":"A"},{"text":"19.9","value":"B"},{"text":"14.7","value":"C"},{"text":"17.2","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213829,"question":"If sales are forecasted using an adaptive expectations model where the coefficient of adjustment .2, the sales forecast for 1986 is.","choices":[{"text":"Rs.260","value":"A"},{"text":"Rs.244.4","value":"B"},{"text":"Rs.3.6","value":"C"},{"text":"Rs.283.6","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213828,"question":"Which of the following is incorrect with respect to the consumption diagram.","choices":[{"text":"the interest rate is a premium","value":"A"},{"text":"MRS = (i +r)","value":"B"},{"text":"The consumer will be lender in time zero","value":"C"},{"text":"The consumer lends 700","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213827,"question":"When the export function is Rs.100-0.2 Y , net exports are 0 when income is .","choices":[{"text":"Rs.300","value":"A"},{"text":"Rs.400","value":"B"},{"text":"Rs.500","value":"C"},{"text":"Rs.600","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213826,"question":"O kun's Law states that for each percentage point by which the unemployment rate is above the natural rate real GNP is 3% below potential GNP, if real GNP is Rs. 3,800 billion with the actual level of unemployment at 6.05 and the natural rate of unemployment at 4.5% then according to Okun's law the GNP gap is.","choices":[{"text":"171 billion","value":"A"},{"text":"684 billion","value":"B"},{"text":"114 billion","value":"C"},{"text":"228 billion","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213825,"question":"The equilibrium level of Y and I derived from the LM and IS equations above is.","choices":[{"text":"Y = 130 and I = 10%","value":"A"},{"text":"Y = 200 and I = 30%","value":"B"},{"text":"Y = 180 and I = 7%","value":"C"},{"text":"Y = 250 and I = 2%","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213824,"question":"The equation for the IS curve is.","choices":[{"text":"Y = 55 - 50 i","value":"A"},{"text":"Y = 175 - 75 i","value":"B"},{"text":"Y = 300 - 100 i","value":"C"},{"text":"Y = 275 - 25 i","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213823,"question":"The equation for the LM curve is.","choices":[{"text":"Y = 100 -50 i","value":"A"},{"text":"Y = 50 + 50 i","value":"B"},{"text":"Y = 50 - 80 i","value":"C"},{"text":"Y = 80 + 50 i","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213822,"question":"Utility means.","choices":[{"text":"Power to satisfy a want","value":"A"},{"text":"Usefulness","value":"B"},{"text":"Willingness of a person","value":"C"},{"text":"Hamfulness","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213821,"question":"Which of the following results in an increase in the value of the dollar.","choices":[{"text":"Interest rates n the united states decrees, ceteris paribus","value":"A"},{"text":"Interest rates in foreign countries increase, ceteris paribus","value":"B"},{"text":"Price level in the United States increases, ceteris paribus","value":"C"},{"text":"Productivity in the united states increases, ceteris paribus","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213820,"question":"Fiscal policy output to change demand for output is.","choices":[{"text":"Completely effective in region KL","value":"A"},{"text":"Partially effective in region JK","value":"B"},{"text":"Elasticity is infinite for region LT","value":"C"},{"text":"Completely ineffective in region LT","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213819,"question":"An increase in autonomous net exports","choices":[{"text":"Shifts IS rightward by k, ox","value":"A"},{"text":"shifts IS left eard by k, AX","value":"B"},{"text":"Increase the slope of IS","value":"C"},{"text":"Decreases the slope of IS","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213818,"question":"Which of the following does not result in an increase in U.S. autonomous net exports.","choices":[{"text":"The U.S. dollar depreciated","value":"A"},{"text":"Major trading partners stimulate their economy","value":"B"},{"text":"Foreign currencies depreciate","value":"C"},{"text":"Foreign trading partners lift tariff barriers","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213817,"question":"The equilibrium level of income of the open economic model is.","choices":[{"text":"200","value":"A"},{"text":"400","value":"B"},{"text":"300","value":"C"},{"text":"500","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213816,"question":"The break even level of income where C = Y is","choices":[{"text":"200","value":"A"},{"text":"300","value":"B"},{"text":"500","value":"C"},{"text":"400","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213815,"question":"Country A 's GNP is increasing by 3% a year in contrast to its population growth of 2.4% The rate of growth of per capita GNP is.","choices":[{"text":"3%","value":"A"},{"text":"0.85","value":"B"},{"text":"0.6%","value":"C"},{"text":"2.4%","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213814,"question":"If GNP = 1,000 billion and the money supply is 330 billion , then the velocity of money is.","choices":[{"text":"A value less than 1.4","value":"A"},{"text":"3.33","value":"B"},{"text":"1.48","value":"C"},{"text":"3.03","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213813,"question":"The MPS = 0.4 and government spending increases by 20 billion. The LM curve","choices":[{"text":"Shifts to the right by 20 billion","value":"A"},{"text":"Shifts to the right by 50 billion","value":"B"},{"text":"Does not shift","value":"C"},{"text":"shifts to the left by 30 billion","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213812,"question":"If the intercept of the consumption function is 75, and MPS is 0.10 the value of consumption expenditures at Yd = Rs. 5,000 is","choices":[{"text":"Rs.4,500","value":"A"},{"text":"Rs. 575","value":"B"},{"text":"Rs.500","value":"C"},{"text":"<div>Rs. 4,575</div>","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213811,"question":"Based on the data above , the increase in potential MI would be","choices":[{"text":"Rs.50 billion","value":"A"},{"text":"Rs.300 billion","value":"B"},{"text":"Rs.60 billion","value":"C"},{"text":"Rs.100 billion","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213810,"question":"What is the level of savings for disposable income = Rs.5,000 if dissaving's of 50 occur at a disposable income of Rs.0 and a marginal propensity to save equal to 0.257","choices":[{"text":"Rs. 1.25","value":"A"},{"text":"Rs.1.125","value":"B"},{"text":"Rs.1,200","value":"C"},{"text":"Rs.1,100","value":"D"},{"value":"E"}],"correctAnswer":3}]