Question # 1

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

The celling in the 1972 land reforms was lower being 150 acres for irrigated and ________ acres for unirrigated.

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200

300

400

None of these

The normal interest rate minus the inflation rate is the

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Depreciation rate

Discount rate

Real interest rate

Forward rate

A current account deficit means that a country may.

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Reduce its stock of foreign assets

Increases its stock of foreign assets

Increases its savings

Increases its foreign currency reserves.

Floating exchange rates are __ in the short run

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Stable

Volatile

Predictable

Depreciating

The most frequently occurring score in distribution.

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Mean

Mode

Median

Quartile

When the central Bank ________ the money supply the LM curve shifts to the _______ interest rates ____________ and equilibrium aggregate output.

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Increase ; right ; fall; increase

increases ; left ; rise ; decrease

decreases ; left ;rise ; increases

decreases ; left ; fall ; increases

An intensive study of particular case is.

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Content analysis

Case study

Research design

intensive study

A price cross elasticity of 0.81 between X and Y shows that.

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They are complementary goods

They are competitive substitutes

They are not substitutes

a reduction in the price of one would cause an increase in the consumption of the other.

If the price was fixed below the equilibrium price there would be.

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Excess supply

Excess demand

Equilibrium

Down ward pressure on prices

The point at which the graph cuts the x axis is called.

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x- intercept

y - intercept

slope

None of these

In market economics the incentive that draws entrepreneurs into industry is.

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Government bonuses for meeting production quotas

Profit

Government assumption of the risk of failure

Government assistance with making output and pricing decisions

For interior commodities income effect is.

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Zero

Negative

Infinite

Positive

If labour productivity per week is 200 units and there are 5 employees what is the total output.

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40 units

195 units

1000 units

200 units

A decline in taxes __ consumer expenditure and shifts the _ curve shifts to the.

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Raises ; LM; Right

Lowers; IS ; left

raises ; IS; right

Lower ; LM; left

In the UK in recent years, union membership has ______ and days of work lost because of strikes has.

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Grown, declined

declined, declined

declined, grown

grown , grown

Firms hire labor at the point where the

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Nominal wage rate equals the marginal product of labor

Real wage rate equals the marginal revenue product of capital

Nominal wage rate equals the marginal revenue product of labor

Real wage rate equals the marginal revenue product of capital

In developing countries the co existence of modern and tadeonal method of production in urban and ruler sector is called.

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Dualism

Under employment

Under estimation of resources

None of these

To adjust GDP from market prices to factor cost.

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Add indirect taxes

Subtract subsidies

Deduct indirect taxes and subsides

Deduct indirect taxes and add subsides

In a free market

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Government intervene

Government plan production

Government interfere

Price adjust to reconcile scarcity and desires.

Which of the following statements is true about hypothesis.

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It is an assumption about population value

There are different types of hypothesis

Hypothesis testing is a function of inferential statistics

All of the above

in UDCs a potential resource of saving is

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Structural unemployment

Over employment

Domestic saving

Disguised unemployment

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

If any equation involving two variables, such as y -=2x + 1, the variable that appears on the right hand side of the equation is by convention called.

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Dependent variable

independent variable

Endogenous variable

Explained variable

When imports from a higher cost supplier with in customs union replace imports from a lower cost supplier outside the custom union, there exists.

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Trade creation

Trade diversion

Dynamic welfare effects

Comprehensive welfare efffects

If in market the seller is changing different prices for the same commodity from different consumers it is known as.

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Price discrimination

efficient selling

Profit maxi miser in Monopoly

all of these

When the export function is Rs.100-0.2 Y , net exports are 0 when income is .

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Rs.300

Rs.400

Rs.500

Rs.600

A Political problem with discretionary fiscal policy is the.

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Contractionary bias

Big state bias

Expansionary bias

Over reaction bias

Which exchange rate system does not require monetary reserves for official exchange rate intervention.

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Floating exchange rates

Pegged exchange rates

Managed floating exchange rates

Dual exchange rates

Case study may be a source of hypothesis of.

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Future research

Research design

Content analysis

Intensive study

If a perfectly competitive industry is in long run equilibrium all firms will

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Have a marginal costs

Have identical supply curves

Operate at the point where marginal cost just covers all variable costs

Have equal fixed costs

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