Question # 1

The extra utility from consuming one more unit of a good is called.

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Marginal utility

Additional utility

surplus utility

Bonus utility

If the price elasticity is -0.3 this means.

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Demand is upward sloping

Demand is price elastic

A price fall would increase revenue

Demand is price inelastic

Ahmed uses dummy variables in order to determine the monthly seasonal effect in her regression model. The number of dummy variables used will be.

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5

11

12

1

Economics given can be shown by

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An inward shift of the production possibility frontier

A movement down the production possibility frontier

An outward shift of the production possibility frontier

A movement up the production possibility frontier

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

Which of the following is the agro based industry.

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Carpets

Iron work

Dairy farms

Woodwork

On a graph a positive linear relation ship.

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Moves down to the right

Moves up to the left

Moves up to the right

Modes down to the left

If the price is less than the average cost but higher than the average variable costs.

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The firm is making a loss and will should own in the short term.

The firm is making a profit.

The firm is making a loss but will continue to produce in the short term

The firm is making a loss and is making a negative contribution to fixed costs

An expenditure reducing policy would consist of a decrease in

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The par value of a currency

Government expenditures

Import duties

Business or household taxes

The central metaphor of deep ecology is.

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Network

Hierarchy

Patriarchy

Domination

In the case of an expansionary ___ policy the interest rate rise while in the case of an expansionary _______ policy the interest rate falls.

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monetary ; monetary

monetary ; fiscal

fiscal ; monetary

fiscal ; fiscal

The dynamic aggregate demand schedule shifts rightward when there is an increase in.

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The expected rate of inflation ceteris paribus

The growth rate of the nominal money supply ceteris paribus

The income tax rate ceteris paribus

the current inflation rate celeries paribus

In monopoly which of the following is true.

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There are many buyers and sellers

There is one main buyers

There is one main seller

The actions of one firm do not affect the market price and quantity.

In the short run a competitive firm's supply curve is.

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Its average variable cost cure to the right of the marginal cost curve.

Its marginal cost curve above the average variable cost curve.

It marginal cost curves above its average cost curve.

The horizontal summation of the marginal cost curves

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.

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Foreign capital flows to the U.S.

The U.S. dollar appreciates

Real net exports decline

American real GNP experience a slower rate of growth

The long run aggregate supply curve

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Is vertical

slopes upward

Is horizontal

Slopes downward

The Lorenz curve is used to show relative in equality in the distribution of.

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Wages

Income

Wealth

Profit

The form of intonational price discrimination normally associated with economic recession or excess inventions in the exporting nation is known as.

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Predatory dumping

sporadic dumpling

Persistent dumpling

Year and dumping

By definition, the marginal propensity to consumes.

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Equals OC/A Yd

Is the behavioral coefficient c in the equation C = C + cYd

Is the slops of the consumption function.

All of the above

The signed minor of the matrass A is called.

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Adjoin

Co factor

Minor

Rank

Sample implies

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Survey representation of larger whole

Smaller representation of larger whole

Population representation of a larger whole

Census representation of a larger whole

A Six year development plan was prepared on the recommendation of Colombo consultation Committee from _____ to.

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1951 -57

1952-58

1953-59

None of the above

What is the reason for dropping the enumeration process.

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Cost is prohibitive

Time consuming

Large efforts

All of the above

A recurring theme in economics is.

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People have unlimited wants in the face of limited resources

There are unlimited resources

Our country is rich, we just don't realize it

People have limited wants in the face of limited resource.

An increase in autonomous consumer expenditure causes the equilibrium levelof 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

The long run Philips curve is _________ at the ______

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Horizontal natural rate of inflation

Horizontal , natural rate of unemployment

Vertical , natural rte of inflation

Vertical , equilibrium rate of unemployment.

Expansionary monetary policy

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Tends to lead to an appreciation of nation's currency

Usually has no effect on a currency's exchange value

Tends to lea dto a depreciation of the currencies of other nations

Tends to lead to a depreciation of a nation's currency.

Fiscal policy refers to.

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The actions of the central bank in controlling the money supply

The government's altitude to taxation

The spending and taxing policies used by the government to influence the economy

The governments regulation of financial intermediaries.

Moral Hazard means that the act of insuring __________ that the desired outcome will occur.

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Reduces the likelihood

Increase the likelihood

Guarantees

None of the above

The book Summa Theologica ' ws written by

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Plato

Aristotie

St. Thomas Aquinas

St. Augustine

In monopolistic competition, firms desire to sell more output at equilibrium because.

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Price is greater than average cost

Price is greater than average variable cost

Price is greater than marginal cost

Price is equal to marginal revenue

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