Question # 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

Price elasticity at a given price is not affected by.

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The price of complements

The price of substitutes

The consumer's income

A change in supply

A decrease iin money demand other thing equal shifts the _____ curve to the

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IS ; right

Is ; Left

LM ; Left

LM ; Rfight

Disposable income is.

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Income less taxes

Income less direct taxes

income less indirect taxes

All of these

A group of modern economists who believe that price and wage rigidities do not provide the only rationale for macroeconomic policy activism are called.

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New Keynesians

Keynesians

Monetarists

The Classical shool

Banks can create money

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Only by illegally printing additional dollar bills

By paying interest to their depositors

By making loans that result in additional deposits

By offering financial services, such as stick market brokerage

When the marginal propensity to consume is 0.75 the multiplier has a value of.

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4

5

3

2

A current account surplus implies that

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The country is a net lender to the rest of the world

The country is running a net capital account surplus

Foreign investment in domestic securities is at very low levels

All of the above

An expansionary supply side shock results in.

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An increased real national income

The aggregate supply curve shifting to the left

The aggregate demand curve shifting to the right

The aggregate demand curve shifting to the left

A depreciation of the dollar will have its most pronounced impact on imports if the demand for. Imports is.

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Constant

Inelastic

Elastic

Unitary elastic

The effects of inflation on the price competitiveness of a country's products may be offset by

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An appreciation of the currency

A revaluation of the currency

A depreciation of the currency

Lower inflation abroad

When planned consumption equals Rs. 40 + 0.90 Yd and planned investment is Rs.50, the equilibrium level of income is.

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Rs.90

Rs.400

Rs.500

Rs.900

Acquisition and merger are examples of.

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Internal growth

External growth

Organic growth

Underlying growth

The break even level of income where C = Y is

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200

300

500

400

Wars new inventions, harvest failures, and change sin government policy are examples of.

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The business cycle

Economics models

Shocks

Opportunity costs

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

The exchange rate system that best characterizes the present international monetary arrangement used by industrialized countries is.

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Freely fluctuating exchange rates

Adjustable pegged exchange rates

Managed floating exchange rate.

Pegged or fixed exchange rates

A firm that is a price taker faces a perfectly

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Elastic supply curve

Inelastic demand curve

Elastic demand curve

In elastic supply curve

In the monetary base is increased by $1,000 and the reserve requirement is 10% by how much will the money supply be increased.

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$100

$1,000

$5,000

$10,000

in UDCs a potential resource of saving is

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Structural unemployment

Over employment

Domestic saving

Disguised unemployment

Which provide a shorthand summary of data.

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Frequency table

Simple table

Cross table

Two way table

More trade and more and is the demand made by the

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Developing countries

Developed countries

More developed countries

Non developing countries

Believers in the monetarist rule assert that

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Lags are long and variable

the economy cna be stabilized by automatic mechanisms

The central bank should keep the money supply growth constant

All of the above

in large scale industry 46% share is contributed by

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Textile industry

Cement industry

coal industry

Steel and iron industry

In Balance of payments accounting tourism and travel are classified in the

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Merchandise trade account

Services account

Unilateral transfers account

Capital account

Which of the following is a determinant of consumption.

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Expectations about future prices

Level of indebtedness of consumers

The price level

All of the above

In the EMU a country's competitiveness can change because of.

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Interest rate adjustment

Central bank intervention i the forex

Domestic wage and price adjustment

Devaluations

Which of the following changes shifts the long run aggregate supply curve to the right.

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A demographic change that increases the labor supply

A decrease in the demand for labor

An increase in consumer confidence

A decrease in taxes

An expansionary monetary policy

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Reduces interest rates

Increases real output

Shifts the LM curve to the right

All of the above

Suppose the intersection of the IS and LM curves is to the left of the FE line A decrease in the price level would most likely. eliminate a disequilibrium among the asset labor and goods markets by.

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Shifting the LM curve down and to the right

Shifting the IS curve up and to the right

Shifting the IS curve down and to the left

Shifting the FE curve to the left

International trade in good sand services is sometimes used as a substitute for all of the following except.

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Internationals movement of capital

International movement of labor

International movements of technology

Domestic production of different goods and services.

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