Question # 1

The fundamental economic problem faced by all societies is.

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Unemployment

Inequality

Poverty

Scarcity

The "Law of demand" states that other things remaining the same the quantity demanded of any good is.

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Directly related to its price

Positively related to its price

Inversely related to its price

Directly elated to the supply of the good

A decrease in the quantity of money supplied shifts the money supply curve to the________ and the equilibrium interest rate

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right ; fall

right ; rises

left ; falls

left ; rises

If A is preferred to B and B is preferred to C and there is indifference between A and D

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D is preferred to C

B is preferred to D

There is indifference between C and D

There is indifference between B and D

If a country has a burden of debt it cannot sustain it can.

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Reschedule debt

Get a loan from an international organization

Default on the loan

Any of the above

Micro economics studies such topics as

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The factors that determine inflation

The forces that influence the price of shoes

The determinants of total output

Whether the unemployment rate will rise or fall

Industrial polices intended to foster comparative advantage for domestic industries could result in the implementation of.

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Research and development subsidies

Loan guarantees

Low interest rate loans

All of the above

A fall in investment demand can result from

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Higher interest rates

Lower expected future profits

More expensive capital goods

All of the above

All the UDCs of the world are homogeneous is broad sense and.

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Heterogeneous in narrow sense

Homogenous in narrow sense also

Homogenous in human resources

Homogenous in natural resources

Economic transition involves high inflation because ______ and _____

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High monetary growth, high wages.

High budget deficits, devaluation

High monetary growth, devaluation

Prices surge from an artificially low level to their equilibrium level the inflation tax is required as source of government revenue.

The fall in the birth ratio will affect the process of economic growth according to

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Schumpeter

A.H.Nansen

Karl Marix

M.P. Todaro

A square matrix with 1's in its principal diagonal and zeros every where else is.

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Diagonal matrix

Identity matrix

Leading diagonal

Scalar matrix

Which of the following would most likely shift the production possibilities curve for a nation outward.

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A reduction in unemployment

An increases in the production of capital goods

A reduction in discrimination

An increase in the production of consumer goods

The variable that stands alone on the left hand side of the equation such as y = 2x + 1 is known as.

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Dependent variable

Independent variable

Endogenous variable

Explained variable

"Rising productivity does not in itself spell the end of inflation. With enough______ it would still be possible to whip prices into a froth the blank is best filled with.

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Income growth

Unemployment

Money growth

Taxes

Holding all factors constant except one and increasing a variable factor is expected to lead to steadily decreasing marginal product of the factor this is an example of.

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Decreasing returns to scale

The law of diminishing returns

Constant returns to scale

an inefficient production technique

To help developing nations strengthen their international competitive rises many industrial nations have granted non nations udder the .

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International commodity engravement's program

Multilateral contract program

Generalized system of preferences program

Export led growth program

Under a fixed exchange rate system an expansionary fiscal policy leads to a

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Trade account deficit and a capital account surplus.

Trade account deficit and a capital account deficit

Trade account surplus and a capital account surplus

Trade account surplus and a capital accoundt deficit

'Equal chance of being included in the sample", about what does Dr. Yates and Harper defined like this.

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Stratified sampling

Probability sampling

Proportional sampling

None of these

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.

The substitution effect of a decrease in real interest rates is to cause a consumer to.

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Increase future consumption and decrease current consumption

Decrease future consumption and increase current consumption

Increase current consumption and increase saving

Decrease current consumption and increase saving.

Law of variable proportion sis applicable in.

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Short run

Long run

Anytime

Fore ever

Marginal cost is the change is cost the result from a one unit increase in.

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Price

Cost

Output

Revenue

Which of the following procedures is included in the process that produces a value for disposable personal income

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subtracting excies and sales taxes

Subtracting nonbusiness interest

Subtracting transfer payment from government.

subtracting income taxes

The conditions necessary for a firm to be able to price discriminate include.

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Segment able markets

Difference in price elasticity of demand among the segments

The inability of customers to transfer products

All of the above

The classical are of the view that utility can be.

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Ranked

Counted

Expressed in numbers

Not counted

Art gallery argument give emphasis to aesthetic aspect of.

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Diversity

Nature

Life

None of these

Aggregate demand without a foreign sector is the sum of.

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c+1

C+G

1+G

C+!+G

A stable equilibrium requires that the marginal propensity to consume is.

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Less than zero

Zero

One

None of these

The situation in which the imports are greater than exports is termed as.

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Trade surplus

Trade deficit

Budget surplus

None

Which of these are nicknamed as Breton wood twins.

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IBRD AND IDA

IBRD AND WTO

WTO AND IMF

IMF AND IBRD

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