Question # 1

A mathematical statement setting two algebraic expressions equal to each other is called.

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Equations

Hypothesis

Inequality

All of above

For any square matrix a of order 'n'a (Ad)A) is equal to.

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(Ad) A) A

Determinant A

Rank of A

Both a and b

A movement along the demand curve may be caused by

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A change in income

A change en the number of buyers

A change in advertising

A shift in supply

If the columns of a given matrix A and B are changed into rows and vice versa, the matrix thus obtained is called the.

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Symmetric matrix

Transpose of a matrix

Singular matrix

Rank of matrix

A purely monetary explanation of the business cycle is proposed by

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Hawtrey

Schumpeter

Hansen

None of these

Monetary policy can affect output.

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this statement is always true

This statements always false

This statement is true only in the short run

This statement is true only in the medium run and the long run

The multiplier is calculated as.

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1(1-MPC)

1/MPS

1/MPC

a or b

The asset market approach a more helpful in explaning.

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why excahnge rates remain quite stable

Why governments change their money supplies.

Long term exchange rate movement.

Short term exchange rate movement.

Rapid increases in the price level during periods of recession or high unemployment are known as.

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Slump

Stagnation

Stagflation

Inflation

Expansion in money supply stems from.

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Increasing the cost of bank credit

Reducing availability of bank credit

Reducing the financial cost of bank credit

None of above

Possible causes of involuntary unemployment are

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Minimum wage agreements

Trade unions

Scale economies

All of the abvoe

For a competitive firm its short run supply curve is ________ and its long run supply curve is.

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SMC , LMC

SMC above SAVC, LMC above LAC

SMC below SAVC, LMC above LAC

SMC Below SAVC, LMC below LAC

Small size of market is the primary cause of under development according to.

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Balance growth theory

Unbalance growth theory.

Big push theory

Dualistic theories

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

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WTO

GATT

IMF

World bank

The resources in the economy do not include.

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Demand

Land

Labor

Capital

Two independent variables are not independent of each other in a multiple regression problem The analyst most likely will be confronted with.

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The problem of autocorrelation

A type 1 error

The problem of multicollinear rarity.

a type II error

If the determinant formed by the elements of the matrix is not equal to zero, then the matrix is called.

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Skew symmetric

Symmetric

Singular

Non -singular

A set containing only one element is termed as

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Unit set

Singleton set

Both a and b

None of these

Absence of representatives are special feature of.

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Research

Content analysis

Narrative method

Case study

Tariff levels in advanced countries tend to be ___ tariff levels in developing countries.

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Higher than

Equal to

Lower than

There is no general pattern

The reason that only final sales are counted in GDP is

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To avoid double counting good that are sold so as to be resold

To not count production in other countries

Because the government can't get records on intermediate sales.

To simplify the computation and no other reason

How much of the Rs.5 billion dollar increase in government expenditures will be recouped in taxes.

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Rs.1 billion

Rs.2 billion

Rs.0.9 billion

Rs.0.5 billion

The IMF gives

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Short term credits

Short term and long term creditors

Both long term credits

None of these

Economic development can be achieve through stages, is the theory of.

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Rosenstein Rodan

Leibstein

W.W. Rostow

M.P. Todaro

A politician proposes reducing business taxes, a move she says will encourage risk taking entrepreneurship This proposed cut in business taxes is intended to stimulate the economy mainly though.

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An increase in aggregate supply

A decrease in aggregate supply

A decrease in aggregate demand

An increase in aggregate demand

Automatic stabilizers

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Counter balance fluctuations in economic activity.

Reinforce fluctuations in economic activity

Do not occur when the economy falls into recession

Reduces the size of the deflationary gap

___________ are quotas that lead to a complete abolishment of trade.

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Nontariff barriers

Embargoes

Voluntary export restraints

Orderly marketing agreements

To be considered a good candidate for an export cartel a commodity should.

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Be a manufactured good

Be a primary product

Have a high price elasticity of supply

Have a low price elasticity of demand

The arc elasticity formula is used to estimate elasticity when

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The product is thought to be inelastic

The product is thought to be elastic

The demand function is known

There are two observations of price and quantity

Under system fixed exchange rates which of the following policies promotes internal balance for a nation.

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Fiscal policy

Monetary policy

Both fiscal policy and monetary policy

Neither fiscal policy nor monetary policy

Profit is measured by

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Revenue - Fixed costs

Fixed cost + revenue

Revenue - sales

Revenues - total costs

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