Question # 1

Which of the following is not involved with fiscal policy.

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Income tax

National insurance

VAT

Interest rates

The supply curve of a monopolist is always.

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More elastic

Less elastic

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Steeper

A temporary decrease in government purchases would cause.

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A rightward shift in the saving curve and a leftward shift in the investment curve

A rightward shift in the saving curve and a rightwards shift in the investment curve.

A right ward shift in the saving curve but no shift in the investment curve

No shift in the saving curve but a left ward shift in the investment curve.

In monopolistic competition firms profit maximize where

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Marginal revenue = average revenue

Marginal revenue= Marginal cost

Marginal revenue= Average cost

Marginal revenue = Total cost

Which method develop theories.

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Observation

Case study

Research

Survey

In perfect competition a firm is.

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Price taker

Price setter

Independent

Dependent

For equilibrium in an open four sector economy

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Actual injections = actual withdrawals

Planned injections = Planned withdrawals

Savings = investment

Government spending = tax revenue

It essentially states that there is no relation between the variables of the problem.

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Hypothesis

Refines hypothesis

Crude hypothesis

Working

The marginal rate of substitution for two goods can be obtained from

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The slope of the demand curve

The slope of the indifference curve

The ration of first derivative of the total utility functions

B and D both

Which of the following statements abut the relationship between marginal cost and average cost is correct.

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When MC is falling AC is falling

AC equals MC and MC'S lowest point

When MC exceeds Ac, Ac must be rising

When Ac exceed MC, MC must be rising

A mathematical statement setting two algebraic expressions equal to each other is called.

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Equations

Hypothesis

Inequality

All of above

The law of diminishing returns assumes.

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There are not fixed factors of production

There are no variable factors of production

Utility is maximized when marginal product falls.

Some factors of production are fixed

An increase in the expected real interest rate tends to.

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Raise desired saving only

Raise desired investment only

Raise both desired savings and desired investment

Raise desired savings, but lower desired investment.

The fact that the Production function relating output to capital 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

Saving means

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Part of income for investment

Income for boarding

Non consumption of income in the current period

None of the above

Biocentrism comes under

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Life centrism

Ecologism

Anthropocentrism

Materialism

Research may be made through either arbitrary method of

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Rational method

Scientific method

Imagination method

Vague method

The three main components of the aggregate demand aggregate supply model include.

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AD, SRAS, LM

SRAS, LRAS, IS

AD, IS, LM

AD, SRAS, LRAS

World environment Day is

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May 5

June 5

July 5

February 5

An increase in the price of a complement or produce.A would.

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Shift demand for product a out wants

Shift demand for product A inwards

shift supply for product A out wards

Shift supply for product A inwards

Two independent variables are not independent of each other in a multiple regression problem The analyst most likely will be confronted with.

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The problem of autocorrelation

A type 1 error

The problem of multicollinear rarity.

a type II error

In pure monopoly there is.

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A lot of firms

Two firms

A single firm

Many firms

In perfect competition the industry will be in equilibrium.

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when all the firms earning abnormal profit

When all the firms earning normal profit

All firms having loss

All firms having proft

The agricultural price support program is an example of.

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A price celling

A price floor

Equilibrium pricing

None of these

The movement of disguised unemployment is.

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integrating factor

Social factor

push and pull factor

All of these

If tastes are identical between countries then comparative advantage is determined by

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Supply conditions only

Demand conditions only

Supply and demand conditions

Can't tell without more information.

In Production of goods and services tradeoffs exist becasue.

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Buyers and sellers often negotiate prices

Society has only a limited amount of productive resources

Not all production is efficient

Human wants and needs are limited at a particular point in time

A profit maximizing firm will hire labor until _______ equal the

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Marginal revenue, marginal cost

Long run marginal revenue, long run marginal cost

Labour output ratio, capital output ratio

Marginal cost of labour, marginal revenue product

Rate of growth of an economy is measured in terms of

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Per capita income

industrial development

Number of people who have been lifted above the poverty line

National income

Economics growth can be seen by an outward shift of.

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The production possibility frontier

The gross domestic barrier

The marginal consumption frontier

The Minimum Efficient scale

An increase in productivity should.

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Lead to a contraction of supply

Lead to an expansion of supply

Lead to a shift in supply outwards

Lead to higher equilibrium and lower equilibrium quantity.

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