Question # 1

If the economy grows the government's budget position will automatically

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Worsen

Improve

Stay the same

Increase with inflaction

If the nominal money supply doubles while real money demand is unchanged what happens to the price level.

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The price level increases by a factor of four

The price level doubles

The price level is unchanged

The price level falls by one half.

What lies is at the heart of the allocation of goods and services in a free market economy.

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Concerns of equity or equal distribution among individuals.

The order or command of the ruling government or dictator

The wishes of consumers in the market

The price mechanism

Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by.

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An fall in demand

An increase in supply

Improvements in production technology

An increase in demand

Menu costs in relation to inflation refer to

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Costs of finding better rates of return

Costs of altering price lists

Costs of money increasing its value

Costs of revaluing the currency

The main cause of different relative costs between countries are.

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Relative factors competition

Relative factor mobility

Relative factor substitution

Relative factor endowments

An independent assessment of the impact of firm's activities on society is called a.

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Financial audit

Balance sheet

Profit and uses account

Social audit

Pure research is focused to collect knowledge without any intention to.

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Find it

Formulation

Observe it

apply it

The respect for nature is a book written by.

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Spinoza

Paul Taylor

Arne Naess

None of these

Who defined research is a systematic, controlled, empirical and critical investigation.

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Spencer

Weber

Kerlinger

Morry

An increase in government spending causes the equilibrium level of aggregate output to_______ at any given interest rate and shifts the ____ curve to the

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rise ; LM ; right

rise ; LM ;Left

fall ; IS ; Left

rise ; IS ;right

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

When the price of foreign currency the exchange is above the equilibrium level.

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an excess supply of that currency exists in the foreign exchange market.

an excess demand for that currency exists in the foreign exchange market

The supply of foreign exchange shifts outward to the right

the supply of foreign exchange shifts backward to the left

In an open economy leakages to imports ______ the value of the multiplier.

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Reduce

Increase

do not change

None of these

During the early years of the Great depression there was a significant decrees n the the money supply that causes. the ______ to shift____

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IS ; Leftward

IS ; rightwards

LM ; Leftward

LM ; rightward

If B is a subset of A, then AUB =

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B

Intersection of A and B

A

None of these

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

Exchange rate overshooting often occur because.

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Domestic prices adjust slowly to shifts in demand

Military spending increases during military's confects

Elasticities are smaller in the long run than the short run

Elasticities are smaller in the short run than the long run.

The IS curve shifts to the left when

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Taxes increase

Government spending increase

The money supply increases

All of the above occur

An income demanded curve of an inferior good is.

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Same in slope

Upward is slope

Downward in slope

None of these

The first level of output at which the long run average costs are minimized is called.

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The minimum Efficient Scale

The minimum External scale

The Maximum External scale

The maximum Effective scale.

Skills that cna be transferred to other employers are called.

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General skills

Specific skills

Non pecuniary skills

All of the above

The multiplier for a change in social security benefits is equl to the multiplier for a change in the same direction in salaries of Evanston police officers tiems.

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the marginal propensity to save

Minus the marginal propensity to save

The marginal propensity to consume

Minus the marginal propensity to consume

Micro economics is conceded with

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The economy as a whole

The electronics industry

The study of individual economic behavior

the interactions within the entire economy

If I keep some money available in case I see a bargain this is an example of.

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Asset demand for money

Transactions demand for money

Token demand for money

Precautionary demand for money

A function where a variable x can only very in jumps, is often called.

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Non linear functions

Inverse function

Step function

All of above

Aggregate demand refers to the total demand for all domestically produced goods and services in an economy generated from.

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The household and government sectors

The household sector

All sectors except the rest of the world

All sectors including the rest of the world.

When the population is badly affected, which type of sampling is appropriate.

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Systematic sampling

Stratified sampling

Cluster sampling

None of the above

The multiplier is calculated as.

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1(1-MPC)

1/MPS

1/MPC

a or b

As a plural noun, who defined statistics very adequately and realistically

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Webster

Bowley

A.M. Tuttle

Prof. H. secrist

According to the cost based definition of dumping occurs when a firm sells a product abroad at a price that is less than

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Average total cost

Average variable cost

Average fixed cost

Marginal cost

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