Question # 1

When the central Bank ________ the money supply the LM curve shifts to the _______ interest rates ____________ and equilibrium aggregate output.

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Increase ; right ; fall; increase

increases ; left ; rise ; decrease

decreases ; left ;rise ; increases

decreases ; left ; fall ; increases

If the prices of both goods increase by the same percent the budget line will

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Shift parallel to the left

shift parallel to the right

Pivot about the x axis

Pivot abut the Y axis

The school of deep ecology was founded by

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J.S.Mill

Kant

Naes

Aristotle

A firm charges Rs. 800 for its unique word processor. If total revenue is Rs. 56,000 in July, how many word processor were sold that month.

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70

95

700

800

In monopoly in long run equilibrium.

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The firm is productively effieient

The firm is allocatively inefficient

The firm produces where marginal cost is less than marginal revenue

The firm produces at the sociality optimal level

In the Keynesian model short run equilibrium occurs where

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The IS and LM curves interest

The IS curve LM curve and FE lines intersect

the IS curve intersects the FE line

The LM curve intersects the FE line

The equation for the LM curve is.

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Y = 100 -50 i

Y = 50 + 50 i

Y = 50 - 80 i

Y = 80 + 50 i

Which of the following is not among Restow's stage of growth.

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The traditional society

the age of low mass consumption

The take off

The dried to maturity

International dumping may involve.

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Selling goods to foreigners at a price below that charged domestic consumers

Selling goods to foreigners at a price below the cost of production

antidumping duties being levied on the imported dumped goods

All of the above

In autarky when a community maximizes its standard of living its production points is.

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Below the production possibility frontier

On the production possibility frontier

Above the production possibility frontier

Can't tell without more information.

Keynesian economists think general equilibrium is not attained quickly because.

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The real interest rate adjusts slowly

The level of output adjusts slowly

The real wage rate adjusts slowly

The price level adjusts quickly

The world trade organization is sometimes criticized for all of the following reasons except.

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If reduces the sovereignty of member countries.

Favors free trade over the quality of the environment

It has no way to solve trade disputes among member countries.

It is a "puppet" of multinational corporations

The marginal rate of tax paid is.

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The total tax paid /total income

Total income/total tax paid

Change in the tax paid/change in income

Change in income/change in tax paid

Short run is a time frame where a firm can change its.,

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Total cost

Total production

Plant size

None of these

Who advocates laissez fair.

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Monetarists

Classical

Neo classical

Modern

Which of the following taxes is regressive.

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The Federal income tax

The state income tax

The sales tax

The Medicare tax

A monopoly may be self perpetuating because profits may be used for

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research

Cost saving

Technical advance

All of the above

Who was the social theorist tha proposed socialism a should serve as an intermediate stage on the way to an ideal communist society.

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Karl Marx

William Domhoff

Erik wright

Wright mills

Say's law states that

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Supply creates its own demand

Demand creates its own supply

There is no such things as a free lunch

Macro economics policy activism is essential to ensure full employment.

Import substitution is an example of.

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The principle of comparative advantage

The principle of absolute advantage

An outward looking growth strategy

An inward looking growth strategy

After a temporary beneficial supply shock hits the economy general equilibrium is restored by

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A shift down and to the left of the IS curve

A shift to the left of the FE line

A shift up and to the left to the LM curve

A shift down and to the right of the LM curve

Art gallery argument give emphasis to aesthetic aspect of.

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Diversity

Nature

Life

None of these

import substitution is the replacement of ________ by domestic production under the protection of.

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exports, subsidies

Exports, patents

imports, high tariffs or import quotes

Imports, subsidies

Injection are

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Assumed to be exogenous

Assumed to be a function of national income

Decrease aggregate demand

Decrease the investment into an economy

Total utility of a commodity is measured by which price of that commodity.

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Value in use.

Value in exchange

Both of above

None of above

In monopolistic competition, firms desire to sell more output at equilibrium because.

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Price is greater than average cost

Price is greater than average variable cost

Price is greater than marginal cost

Price is equal to marginal revenue

"Treating an individual as typical of a group.

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Pure discrimination

statistical discrimination

Human capital

Specific skills

Usury is prohibited in

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Islam only

Sikhism only

Jewism

Both a and b

In a mixed economy the economic decisions of what to produce how to produce, and who will receive products are made by

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The government

Consumers and firms

Banks and stock markets

Firms, consumers, and government.

Find the revenue the government collects as a result of the tax

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Rs.10 million

Rs.40 million

Rs.16 million

Rs.30 million

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

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Constant

Inelastic

Elastic

Unitary elastic

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