Question # 1

Which exchange rate mechanism is intended to insulates the balance of payments from short term capital movements while providing exchange rate stability for commercial transactions.

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Dual exchange rates

Managed floating exchange rates

Adjustable pegged exchange rates

Crawling pegged exchange rates.

The Central Bank controls money and credit with the exception of.

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Controlling the money base through open market operations

Controlling reserve requirements

Setting the discount rate of interest

controlling the stock market

The income effect of a price change

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Is always positive

Is always negative

May be positive or negative

Is associated with a change in nominal income

For a competitive firm its short run supply curve is ________ and its long run supply curve is.

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SMC , LMC

SMC above SAVC, LMC above LAC

SMC below SAVC, LMC above LAC

SMC Below SAVC, LMC below LAC

Monopoly market is characteristics by

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A large number of sellers

Only one seller

Thousand of seller

All of these

The result of antidumping tariffs is to.

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increase consumer surplus in the importing country

Decrease producer surplus in the importing country

Impose a price floor on foreign prices in the importing country

Impose a price celling on foreign prices in the importing county

Economic theory assumes that people

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Act in greedy and selfish ways, without regard for the welfare of others.

Act without regard for their own interests.

Are not motivated by self interest

Are motivated by self interest but still might be concerned for the welfare of others.

Dynamic multipliers occur when

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the assumption of ceteris paribus is dropped

The economy is not in equilibrium

Consumption is unrelated to disposable income

there is lagged response between consumption and disposable income

Appreciation of the U.S. dollar results in.

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U.S. tourists traveling abroad being worse off

U.S. imports increasing.

Foreign currency buying more U.S. goods and services.

No change iin foreign pucchases or sales.

Which of the following is an example of a productivity shock.

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The introduction of new management techniques

A change in taxes on corporate profits

A change in the level of government transferors

An increase in the money supply

In the money market a condition of excess supply of money cna be eliminated by a _________ in aggregate output or a __ in the interest rate , both of which increase the quantity of money demanded.

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rise ; rise

rise ; fall

fall ; rise

fall ; fall

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

Who own the random number table which comprising of 15,000 digits arranged in twos.

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Kendall and B,B. Smith

L.H.C. Tippet

British Census report

Fisher and Yates

Last week, Martha spend one day cleaning a house for this she was paid $50 The rest of the week, she spend looking for a job Martha would be callsified as.

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Employed

Unemployed

Not in the labor force

None of these

An ethics that treats only humans as morally considerable is called.

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Holism

Eco centrism

Anthropocentrism

None of these

The theory of overlapping demands predicts that trade in manufactured goods is unimportant for countries with very different.

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Tastes and preferenes

Expectations of future interest rate levels

Per capita income levels

Labor productivities

Open market operations occur when the government.

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Reduces the interest rate

Buys and sells bonds and securities

Increases taxation

Increases the exchange rate

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

Defined as a tentative or working proposition suggested as a solution to a problem.

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Research

Objective

Hypothesis

Concepts

If the reserve deposit ratio is 0.25 and the ratio of currency in circulation to deposits is 0.3, the potential money multiplier will have a value of.

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2.36

0.42

1.20

0.96

Based on the data above , the increase in potential MI would be

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Rs.50 billion

Rs.300 billion

Rs.60 billion

Rs.100 billion

Skills that can be transferred to other employers are called.

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General skills

Specific skills

Non pecuniary skills

All of the above

What does the phrases "there is no such thing as a free lunch'mean"

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Individuals must always pay money for the food the eat.

No restaurant wner will provide food to patrons unless they pay her

Restaurant owners act selfishly

Consumption of any good requires that other goods be given up

What is the characteristic of the sample which is selected randomly.

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It is not average of the whole

It would be representative

It would not be equal to the population

All of the above

A negatively sloped isoquant implies

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Products with negative marginal utilities

Products with positive marginal utilities

Inputs with negative marginal products

Inputs with positive marginal products

A decrease in autonomous consumer expenditure causes the equilibrium level of aggregate output to __________ at any given interest rate and shifts the _______ curve to the __________

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rise ; LM ;right

rise ; IS ; right

Fall ; LM ; left

rise ;IS; Left

Money's primary role in the economy comes from the benefits of lowering transactions costs and allowing specialization This function of money is called.

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Store of value

Medium of exchange

Standard of deferred payment

Unit of account

The automatic stabilization function of fiscial policy ensures that government expenditures _________ and government revenues __ during recessions.

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decrease ; decrease

decrease ; increase

Increase ; decrease

increase ; increase

Cardinal approach theory was presented by

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Marshall

Adam smith

Robbins

Hicks

To reduce the supply of money the government could.

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Reduce interest rates

Buy back government bonds

Sell government bonds

Encourage banks to lend

Research is an organized

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Enquiry

Survey

Investigation

Experiment

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