Question # 1

If a maximum price is set below equilibrium there will be.

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A price fall

A price increase

Excess supply

Excess demand

Indifference curve has following characteristics except.

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Convex to origin

Intersect each other

Not necessary to be parallel

None of these

If there is a price floor there will be

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Shortages

Surpluses

Equilibrium

None of these

If the estimated values of Y and Py in 1987 are Rs. 30,000 and Rs. 8 respectively the marginal revenue of X is.

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260 - 160 x

420 - 4Qx

240 - 16 Px

80 - 4Qx

The long run aggregate supply curve

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Is vertical

slopes upward

Is horizontal

Slopes downward

If average variable cos tis less then marginal cost then certainly.

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Per unit total cost is rising

Per unit total cost is constant

Per unit total cost is falling

Per unit variable cost is rising

An indifference curve shows various combinations to goods Which gives the consumer.

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Equal level of utility

Low level of utility

High level of utility

None of these

Tariffs.

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Decrease the domestic price of a product.

Increase government earnings from tax

Increase the quantity of imports

Decrease domestic production

In perfect competition price is settled by

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Sellers

Buyers

Producers

Both a and b

General agreement on Tariffs and Trade was established in.

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1948

1949

1950

None of these

Due to indivisibilities in demand and infrastructure economic development can be achieved.

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Balance growth according to its advocates

Unbalanced growth according to its advocates

Big pus

None of these

Who own the random number table which comprising of 15,000 digits arranged in twos.

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Kendall and B,B. Smith

L.H.C. Tippet

British Census report

Fisher and Yates

Starting from a position where the nation's money demand equals the money supply and its balance of payments is it equilibrium, economic theory suggest that the nation's balance of payments would more into a surplus position if there occurred in the nation a.

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Decrease in the money supply

Increase in the money supply

Decrease in the money demand

any of the above

In an economy experience high interest rates and high unemployment The ISLM frame work predicts that _________ policy has been too.

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fiscal ; expansionary

fiscal ; contractionary

monetary ; expansionary

monetary ; contractionary

What is the significance of underestimating transactions money.

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Monetary policy will be over simulating the economy

Monetary policy will be putting a drag on the economy

there is a need for money that the central bank should be meating.

The economy has too much money and there frore not enough spending.

Marginal utility is equal to average utility at that time when average utility is.

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Increasing

Maximum

Falling

Minimum

A tax of 17 percent per imported item would be an example of a

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Ad valorem tariff

Specific tariff

effective tariff

Compound tariff

Which of the following persons would be considered unemployed.

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a house wife

A person who worked more than 20 hours in a family owned business

A 15 years old looking for summer employment

A recent college graduate looking for her fist job

Firm A's margin of safety is.

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0.10

0.40

0.20

0.30

If an individual has a money income M of Rs. 999 , the price of X is rs.7.00 per unit and ithe price of Y is Rs. 300 per unit find the equation for the budget lines.

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Y = 333 - (7/3) x

Y = 142 - (7/3) x

Y = 142- (3/7) x

Y = 323 - (7/3) x

Micro economics is the study of.

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Economy on the whole

Large units of the economy

Individual units of the economy

General economics

Which of the following is true.

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If the marginal cost is greater than the average cost the average cost fallls.

If the marginal cost is greater than the average cost the average cost increases.

If the marginal cost is positive total costs are maximized

If the marginal cost is negatives total costs increase at a decreasing rate if output increases

Shifting cultivation is found in

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Tropical zone

Sub tropical zone

Both a and b

None of these

Which of the following is not one of the four Ps in marketing.

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Product

Price

Place

Presence

The set of 'stars in the sky' is an example of

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Countable set

Infinite set

Finite set

unit set

If the price elasticity is -0.3 this means.

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Demand is upward sloping

Demand is price elastic

A price fall would increase revenue

Demand is price inelastic

The major source of revenue for the government is.

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the collection of property taxes

The collection of the corporates income tax

The collection of excise taxes on gasoline cigarettes and tires

The collection of import and export duties in the conduct of foreign trade

Suppose velocity is constant and the real income elasticity of the demand for money is less than one then estimating inflation as money growth rate minus real growth rate.

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Overestimates inflation

Underestimates inflation

Is an erratic estimate of inflation

Remain an accurate estimate of inflation.

A purely monetary explanation of the business cycle is proposed by

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Hawtrey

Schumpeter

Hansen

None of these

Credit (+) items in the balance of payments correspond to anything that.

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Involves receipts from foreigners

Involves payments to foreigners

Increases the domestic money supply

Decrease the demand for foreign exchange

The institutional framework developed in 1974 to promote trade liberalization is known as.

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WTO

GATT

IMF

World bank

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