Question # 1

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

At point of satiety marginal utilityis.

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Positive

Negative

Maximum

Zero

To ensure that the fundamental identity of national income accounting holds changes in inventories are.

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Ignored

Counted as consumption

Treated as part of saving

Treated as part of expenditure

The purpose of fiscal policy is to

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Alter the direction of the economy

Change people's attitudes toward governemnt

Educate people as to the importance of economics

Offer insight into the way thing work

The Hocksher Ohlin model rules out the classical model's basis for trade by assuming that. _______ is identical between countries.

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Factor endowments

Factor intensities

Technology

Opportunity costs

In which of the following situations will an increase in the money supply have no effect upon equilibrium iincome.

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LM is steeply sloped and IS is relatively that

LM is vertical and IS is stopped

LM is steeply sotped and IS is vertical

LM is relatively flat as is IS

The marginal rate of substitution for two goods can be obtained from

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The slope of the demand curve

The slope of the indifference curve

The ration of first derivative of the total utility functions

B and D both

Your checking account is

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An asset for you and a liability for your bank

A liability for you and an asset for your bank

An asset for both you and your bank

A liability for both you and your bank

The growth rate of economics tend to converge because._________ is easier when capital per worker is low and because of_____

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capital widening, technical innovation

Capital widening, catch up in technology

Capital deepening, technical innovation

Capital deepening, catch up technology.

According to the factor endowment model of Hackshcer and Ohlin countries heavily endowed with land will.

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Devote excessive amounts of resources to agricultural production.

Devote insufficient amounts of resources to agricultural production

Export products that are and intensive.

Import products that are land intensive

The method by which a sample is chosen

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Unit

design

Random

Census

If two sets contain the same distinct elements, then they are called.

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Equal sets

Unequal sets

Equivalent sets

All of the above

Law of variable proportion is also called.

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Law of non proportion returns

Law of substitution

Law of casts

Law of demand

A Political problem with discretionary fiscal policy is the.

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Contractionary bias

Big state bias

Expansionary bias

Over reaction bias

The percentage change in the quantity demanded in response to a percentage change in the price is known as the.

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slope of the demand curve

Excess demand

Price elasticity of demand

All of the above

Gold -Collars workers fall in

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Primary activity

Tertiary production

Quinary activity

None of these

A scarce good.

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Does not exist

Is a good that can only be purchased with money

Is a good that can never be purchased with money

Is a good that is available in limited quantities, but is desired in greater quantities.

When real income increases, other things equal we fan expect the demand for real money holdings to.

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Fall

Not change

Increase

Decrease

An item designed as money that is intrinsically worthless could the.

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A currency note

A silver coin

A barter item

Any tradeable commodity

In monopoly when abnormal profits are made.

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The prize set is greater than the marginal cost

The price is less than the average cost

The average revenue equals the marginal cost

Revenue wquals total cost

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.

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Increasing returns to scale

Diseconomies of scale

Constant returns to scale

Economies of scale

If investors expectations concerning the future are positive and thus increase investment at every interest rate the.

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IS curve would shift up

IS curve would shift down

LM curve would shift down

IS and LM curves will not shift

A bonds becomes a riskier asset the demand for money_______ and all else constant, the equilibrium interest rate

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Rises ; rises

rises ; falls

falls ; rises

falls ; falls

In the Keynesian corss diagram, and cline in autonomous consumer expenditure causes the aggregate demand function to shift down the equilibrium level of aggregate output to___________ and the IS curve to shift to the.

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up ; left

up ; right

down ; left

down ; right

For any square matrix A of order 'n' a +A is.

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Skew symmetric

Non skew symmetric

Symmetric

Non symmetric

In the money market a condition of excess demand for money can be eliminated by a __________ in aggregate output or a ____ in the interest rate both of which reduce the quantity of money demanded.

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rise ; rise

rise; fall

fall ; rise

fall ; fall

The price of Ketchup at a market increases by 12.5% per can, which results in a decrease in quantity purchased by 40% per week, the demand is.

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Relatively elastic

Relatively inelastic

Perfectly elastic

Perfectly iinelastic

Which of the following is not an example of the functions of statistic.

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Average

Intelligence quotient

Diagram

x2 test

If marginal utility is zero.

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Total utility is zero

An additional unit of consumption will decrease total utility

An additional unit of consumption will increase total utility

Total utility is maximized

Scientific method in the application of valid and reliable research methods.

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Experimental

Survey

Methods

Enquiry

A firm charges Rs. 800 for its unique word processor. If total revenue is Rs. 56,000 in July, how many word processor were sold that month.

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70

95

700

800

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