Question # 1

Which stage guides from the planning stage to the stag of drawing of final conclusions.

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Numerical facts

Statistical methods

Data

None of the above

Identify the three motives of money demand.

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Accumulative

Speculative precautionary

Speculative transaction precautionary

Precautionary special trisection

As long as the principle of diminishing marginal utility is operating any increased consumption of good.

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Lowers total utility

Produces negative total utility

Lower marginal utility and therefore total utility

Lowers marginal utility, but may raise total utility.

Nationalism, self sufficiency, and imperial power were central concerns of.

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French physiocrats

Thomas Malthus

Mercantilists

Adam Smith

Less Developed countries lend to have

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A high average age

A slow population growth rate

High life expectancy

A low literacy rate

The fact that the production function relating output to labor 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

If there is a price floor there will be

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Shortages

Surpluses

Equilibrium

None of these

The set which contains all the element of the two given sets A and B, avoiding duplication, is called.

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Intersection of A and B

Union of A and B

Set A and B

None of these

The econometric problem of errors in variables leads to

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Ballasted estimates of regression coefficients.

Autocorrelation

Unbiased estimates of regression coefficients but non minimum variance of estimated coefficients.

None of the above

Perfect international capital mobility suggests that international funds will be responsive to _______ differentials.

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Current account

Interest rate

Tax

Price

The reduction of the inflation rate is called

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Deflation

Disinflation

Inflation

Reflation

in The Liquidity trap region

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Fiscal policy is not effective

Monetary policy is completely ineffective

Monetary policy is completely effective

Fiscal policy and monetary policy are equally effective

The supply curve of a perfectly competitive firm

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Includes the upward sloping portion of the marginal cost

Is equal to entire margin cost

Includes the downward sloping portion of marginal cost

None of these

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

When equilibrium in the money and goods markets occurs at a rate of interest below the BP schedule internal and external equilibrium for the United States can he achieved by.

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Expanding the U.S. money supply

Increasing government spending

Increasing taxes

Lowering interest rates in the united states.

A market can accuretaly be described as

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A place to buy things

a place to sell things

The process by which prices adjust to reconcile the allocation of resources

a place where buyers and sellers meet.

The largest source of tax revenue for the federal government is.

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The personal income tax

The social security tax

The property tax

The sales tax

If marginal cost is positive and falling.

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Total cost is falling

Total cost is increasing at a falling rate

Total cost is falling at a falling rate

Total cost is increasing at an increasing rate.

Indifference curve theory is old wine in new labeled bottle is said by.

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Marshall

Griffin

Ricardo

Allen

The best describes consumer surplus.

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The price consumers are willing to pay for a unit

The cost of providing a unit.

The profits made by a firm

The difference the price a consumer pays for an item and the price he is willing to pay.

For the economic growth of country following is required.

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Capital formation

Human resources

Natural resources

All of these

The equation for a givne production function is Q = K2 + KL, initially K = 2 and L = 1 if the value of both inputs is doubted the production function exhibite.

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Increasing returns to scale

Diseconomies of scale

Constant returns to scale

Economies of scale

In the Keynesian cross diagram an increasing investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift _____ and the equilibrium level of aggregate output to.

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up ; rise

up ; fall

down ;rise

down ; fall

If firm earn normal profits.

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They will aim to leave the industry

Other firms will join the industry

The revenue equals total costs

No profit is made in accounting terms

Reasoning from general to particular is called.

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Induction

deduction

Observation

Experence

Which of the following is an example of primary data.

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Book

Journal

News paper

group interview

Coefficient of standard deviation is.

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SD/Median

SD/Mean

SD /Mode

AM/SD

Equilibrium occurs in a two sector model when

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Saving equals investment.

Consumption plys investment equals the value of putput

Planned saving equals planned investment.

Aggregate spending equals the revenues of the business sector

When planned saving is greater than planned investment.

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Output should increase

Output should decrease

Output should not change

All of the above

Shifting cultivation is found in

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Tropical zone

Sub tropical zone

Both a and b

None of these

The difference between what consumers have to pay for a particular and what they are willing to pay is known as.

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Consumer surplus

Producer surplus

Dead weight costs

Dead weight surplus

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