Question # 1

An efficient economy is an economy

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In which output is steady or growing and there is low inflation

That produces what consumers demand and does so at the least possible cost.

that distributes output equally among all consumers

In which there is a fair distribution of wealth.

If the central bank prints more 10 billion and spends them then as a direct result of this action.

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M1 and M2 both increases

Neighed M1 nor M2 increase

M1 increase but M2 does not

M2 increased but M1 does not.

In perfect competition.

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the products firm offer are very similar

Products are heavily differentiated

A few firms dominate the market

Consumers have limited information

According to the .A.H Hasen the capitalistic economy is basically characterized with

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Instability

Stability

Inefficiency

Efficiency

If there are 50 firms in a industry each selling 2% of the total sales the concentration ratio is.

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50%

2%

8%

100%

For a positively skewed distribution.

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mean > mode ? median

mean > median > mode

mode > mean > median

mean < mode < median

All of the following are parts of the business cycle except.

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Boom

slump

Recovery

Acceleration

What is the average money balance according to the square root rute if income is Rs.1500, each transaction cost is Rs.4, and the opportunity cost of holding money is.2%

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387

50

175

203

The fact that the production function relating output to labor becomes flatter as we move from left to right means that.

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The marginal product of labor is positive

The marginal product of capital is positive

There is diminishing marginal productivity of labor

there is diminishing marginal productivity of capital

The very word statistics refers to.

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State craft

Science of state

Political state

Political craft

An IOU of the Federal Reserve Bank of Scan Francisco to Bank of America is called.

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Discourse

Federal funds

Reserves

Collateral

In pure monopoly there is.

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A lot of firms

Two firms

A single firm

Many firms

Occupational immobility of labour occurs if.

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People lack information

People do not want to work

People do not have the right skills to work

People cannot afford to move location

Which of the following organization primely provides long term loans to developing countries to help them develop the infrastructure such as schools hospitals and roads.

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World Bank

International Monetary fund

Council on Foreign Relations

Organization of petroleum Exporting countries.

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.

If the columns of a given matrix A and B are changed into rows and vice versa, the matrix thus obtained is called the.

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Symmetric matrix

Transpose of a matrix

Singular matrix

Rank of matrix

If the price of product X falls and this change increases the demand for product Y then.

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X and Y are complements

X and Y are substitutes

X is an inferior good

Y is an inferior good

A firm's total labor cost when six workers are employed is Rs.580 When seven workers are employed the total labor cost is Rs.700 the Rs. 120 change in total labor cost represents.

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Marginal physical product

Marginal resources cost

Marginal cost

Marginal revenue

Law of demand is not applicable on

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Daily goods

Scarce goods

Consumer goods

Producer goods

When the supply of money increases.

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The LM curve will shift in

The LM curve will shit out

The demand for money will decrease

The demand for money will increase

Which of the following part of M1

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Stock negotiating accounts

Automatic transfer system accounts

Negotiable orders of withdrawal accounts

Demand deposits of mutual saving banks.

In a fixed exchange rate regime, the central bank will intervene by __ pounds to ______ the exchange rate.

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Selling, increase

buying , increase

selling, reduce

both b and c

The term of trade is given by theprices.

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Paid to all goods exported by the home country

Received for all goods exported by the home country

Received for exports and paid for imports.

Of primary products as opposed to manufactured products.

Fiscal defect in the budget means.

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Revenue Deficit plus the net borrowings of the government.

Budgetary deficit plus the net borrowings of the government

Capital deficit plus revenue deficit

Primacy deficit minus capital deficit

GDP difference between GNP because.

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GDP = GNP - net factor payments from abroad

GNP = GDP -net factor payments from abroad

GDP = GNP -capital consumption allowances

GNP = GDP -capital consumption allowances.

When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, the long run aggregate supply curve.

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slopes upward

Sloped downward

Is vertical

Is horizontal

The short run Philips curve can shift in response to changes in

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inflationary expectations

Unemployment

The inflation rate

Wage rates

In the short run the level of floating exchange rates is determined mainly by.

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Interest rates

Competitiveness

Trade

Speculation

Which of the following measures is the best measure of money as a medium of exchange.

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M1

M2

M3

None of the above

Despite an expansionary monetary policy an economy experiences a recession the recession could occur in spite of the right ward shift of the LM curve if

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The IS curve shifts left ward

The IS curve shifts right ward

The money supply increase

Taxes are cut

The asset market approach a more helpful in explaning.

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why excahnge rates remain quite stable

Why governments change their money supplies.

Long term exchange rate movement.

Short term exchange rate movement.

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