Question # 1

The multiplier accelerator model assumes _______ depends on.

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Consumption, expected future profits.

Investment, interest rates.

Investment expected future profits.

Stock building, interest rates.

Super Natural power, divinity, and gifts of nature are integral to the explanations of economic events developed by.

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Physiocrais

German historicists

Modern monetarists

Mercantilists

Second step in problem formulation is

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Statement of the problem

Understanding the nature of the problem

Survey

Discussions

The current account includes

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The value of trade in merchandise

Services

Unilateral transfers

All of the above

A set continuing no elements is called.

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Null set

mpty set

void set

all of the above

An increase in the marginal propensity to import.

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Has the some effect upon the multipliers as an increase in the MPC

Has no effect upon the multipliers

Increases the value of the multipliers

Decreases the value of the multipllers

Arne Naes founded the school of.

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Eco ethics

Deep ecology

Eco philosophy

Environmental ethics

If an economy is productively efficient.

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Everyone is wealthy

Resources are unemployed

More of one product can only be produced if less of another product is produced.

The distribution of income is equal

if a consumer is purchasing only two commodities X and Y , and the marginal utility per dollar of Y is greater than the marginal utility per dollar of X to maximize total utility with the limited income the consumer should buy.

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.Less of both commodities

.More of both commodities

More of Y.

None of the above

A cut in the tax rate designed to reduce the business investment is an example of.

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Expansionary demand side policy

Contractionary demand side policy

Expansionary supply side policy

Contractionary supply side policy

To move from point E to point E1 is consistent with.

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Expectations of a constant price level

Adaptive expectations that have no adjustment for the period immediately following a change in the actual price

Rational expectations and NCM

A and B

In monopolistic competition firm sell

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Same goods

Differential goods

Inferior goods

Superior goods

The price of salsa rises, How does the increase in the price of salsa affect the supply of salsa.

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The supply of salsa increases

The supply of salsa decreases

There is no change to either the supply of salsa or the quantity supplied of salsa

There is no change to the supply of salsa but the quantity supplied of salsa increases

The short term interest rates on bonds over the next 5 years is 6% , 7%, 9% ,10% and 8% according to the expectations Hypothesis, the interest rates on bonds with 5 years to maturity will be.

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6%

8%

10%

9%

A monopsony is

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The scale supplier of an input

The scale supplier of an output

The sole buyer of some type of input

A unionized industry

Which of these are nicknamed as Breton wood twins.

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IBRD AND IDA

IBRD AND WTO

WTO AND IMF

IMF AND IBRD

The overall Budget Deficit is financed from

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External borrowing

Non bank borrowing domestically

Bank borrowing plus the above two at a and b

None of the above

Which kind economics deals with issues such as unemployment inflation, and economic growth.

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Macro economics

Micro economics

Growth economics

Political economics

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

The monetary base in composed of.

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Gold and silver

Currency only

Currency and reserves

Currency and checkable deposits

If for the output of worth 1 million the stock of capital worth 4 million is required this will be.

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capital profit ratio

Output profit ration

Capital output ratio

Capital input ratio

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.

__________ 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

An increase in aggregate demand if aggregate supply is totally inelastic will.

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Increase price but not output

Increase output but not price

Increase out put and price

Decrease output and price

According to M.P Todaro model of ruler -urban migraton the migrationis assumed to be a.

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Social phenomenon

Cultural phenomenon

Uneconomic phenomenon

Economic phenomenon

The exit of firms out of a competitive market causes the supply curve to.

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Shift leftward

shift rights ward

None of the above for the exit of firms supply curve

shift either left or right depending on the number of firms leaving the market

If a country has linear production possibilities frontier than production is said to be subject to.

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constant opportunity costs

Decreasing opportunity costs

First increasing and the decreasing opportunity costs

Increasing opportunity costs.

Oligopoly is a market structure in which

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Many firms each produce a slightly differentiated product

One firm produces as unique product

A small number of firms compete

Many firms produce an identical product

If there is a price floor there will be

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Shortages

Surpluses

Equilibrium

None of these

The reduction or covering of foreign exchange risk is called.

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Hedging

Speculation

Intervention

Arbitrage

Food crops cover about __________ of cropped areas

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75%

85%

15%

35%

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