Question # 1

An increase income will

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Lead to a movement along the demand curve

Shift the supply curve

Shift the demand curve

Lead to an extension of demand

Coefficient of standard deviation is.

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SD/Median

SD/Mean

SD /Mode

AM/SD

The earliest statement of the principle of comparative advantage in associated with

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Adam Smith

David Ricardo

E . Heckscher

Bertil Ohlin

Equilibrium occurs in a two sector model when

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Saving equals investment.

Consumption plys investment equals the value of putput

Planned saving equals planned investment.

Aggregate spending equals the revenues of the business sector

When the S/L exchange rate rises the pounds______ and whent he S/L rate falls the pounds.

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depreciates, appreciates

revalues, devalues

appreciates, deprecates

becomes more expensive, becomes cheaper

The negative relation ship between unemployment and inflation is know as the

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Aggregate supply curve

Aggregate demand curve

Philipps curve

Efficiency wage line

Which of the following macro economic variables is procyclical and coincident with the business cycle.

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Residential investment

Nominal interest rates

Industrial production

Unempolyment

Demand for a normal product may shift outwards if.

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Price decreases

The price fo a substitute falls

the price of a complement rises

Income falls

The natural rate of unemployment is generally thought of as the

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Ratio of the frictional unemployment rate to the cyclical unemployment rate.

Sum of fictional unemployment and cyclical unemployment.

Sum of frictional unemployment and structural unemployment.

sum of structural unemployment and cyclical unemployment.

the relation of productivity and income is discussed by Nurkse in.

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Vicious circle of poverty

balance growth theory

Unbalance growth theory

Big push theory

__________ policies attempt to foster industrialization by establishing high barriers to import of foreign goods to promote local production.

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absolute advantage

Comparative advantage

Export led growth

Import substitution

Pure research is focused to collect knowledge without any intention to.

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Find it

Formulation

Observe it

apply it

(A+B) = (B+A) this law of matrices is known as.

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Cumulative law

Associative law

Distributive law

Identity law

A disadvantage of the barter system is that

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No trade occurs

People must produce all their own food clothing and shelter

The opportunity to specialize is greatly reduced.

Gold is the only unit of account

The implementation lag for monetary policy is generally

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Much longer than it is for fiscal policy

Unrelated to central bank action

The same as it is for fiscal policy

Much shorter than it is for fiscal policy.

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.

Small size of market is the primary cause of under development according to.

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Balance growth theory

Unbalance growth theory.

Big push theory

Dualistic theories

From of Agriculture in which famers move from place to place in search of better land is called.

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Subsistence farming

Shifting cultivation

Shifting agriculture

All of these

As disposable income increases from Rs. 1500 to 2000 , saving increases from minus Rs. 50 to Rs.250 if the relationship between disposable income and saving is linear, the MPC obviously has a value of.

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.6

.8

.4

.2

Mudaraba business is administered by the Mudaraba companies and Mudaraba rules .

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1990

1980

1981

1978

In the product market of the circular flow model.

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Firms buy finished products from households.

Consumers buy factors of production from firms

Firms Sell factors of production to the government

Consumers buy finished products from firms

The contractionary effect on private investment spending due to financing requirements of government deficit pushing up interest rates is known by this term.

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Crowding out

Recognition lag

Public sector borrowing requirement

Fiscal drag

If X becomes more expansive i relation to Y, what happens to the budget line in the X - Y space, with Y on the vertical axis.

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It shifts to the right

It shifts to the left

The slope becomes flatter

The slope becomes steeper

If I keep some money available in case I see a bargain this is an example of.

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Asset demand for money

Transactions demand for money

Token demand for money

Precautionary demand for money

Given the data above, the empirical equation for the IS curve is.

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Y = 275 + 10 i

Y = 225 + 50 i

Y = 250 - 10 i

Y = 275 - 501

Land will be allocated between competing uses so that.

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Housing gets priority

Industry gets priority

Faming gets priority

The equilibrium rental rate equilibrium total demand with supply

In economics we ofthe say that a particular event will occur "as long as other things stay the same. " The conduction that other thing saty the same is also called.

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Ceteris paribus

Marginal decision making

Incentives

Secondary effects

When considering any kind of economics indicator, prices are important because.

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They reflect the value of goods and services.

They are established by the government to control population 's needs

They categorize goods and services by their weight

Historically they have proved to the good predictors of futures unemployment.

An increase in aggregate demand is more likely to lead to demand pull inflation if.

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Aggregate supply is perfectly elastic

Aggregate supply is perfectly inelastic

Aggregate supply is unit elastic

Aggregate supply is relatively elastic

Starting from a balanced budget, for a given tax rate an increase in income will cause the government budget to.

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Move into surplus

Move into deficit

Remain unchanged

None of these

It is the collection of data concerning the living and working conditionals of the people in a given community

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Samplin g

Case study

Social survey

Data collection

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