Question # 1

Which of the following correct about firms in an oligopoly.

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Each firm has complete control over its own selling price

All firms independently charge monopoly prices

No one firm controls price but each has an influence on the price

There is no competition in oligopoly industries

Supply side policies are most appropriate to cure.

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Involuntary unemployment

Cyclical unemployment

Voluntary unemployment

A fall in aggregate demand

If the home country government grants a subsidy on a domestically produced good domestic producers lend to.

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Capture the entire subsidy in the form of higher profits

Increases their level of production

Reduce wages paid to domestic workers

Consider the subsidy as an increase in production cost

A set of systematically related propositions specifying causal relationships among variables.

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Research

Concept

Theory

Hypothesis

Price discrimination is possible

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Oligopoly

Duopoly

Perfect competition

Monopoly

If a monopolist's has only fixed costs and chooses that output at which marginal cost equals price. it will

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Earn positive economic profits

Earn zero economic profits

Incur a loss equal to its variable costs

Incur a loss equal to its fixed costs

Tax incidence is the

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Ultimate distribution of a tax's burden

Measure of the inpat the tax has on employment and output

Behavior of shifting the tax to another party

Structure of the tax

If the government lower taxes by $10 billion, the Real GDP will rise by

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More than $10 billion

Less than $10 billion

Exactly $10 billion

None of these

What happens to the money supply if the deficit is financed by selling bonds to the central bank.

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The money supply increases

The money supply decreases

The money supply is unaffected

We cannot tell what will happen to the money supply

If a country an imposes an import tariff its welfare can improve if

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The country is a small country's than a larger country.

Its terms of trade improve enough

The tariff enhances the welfare of its trading partners

Its government's tax revenue increase because of the tariff

A demand curve that is an equilateral hyperbola is.

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Perfectly elastic

Relatively elastic

Unit elastic

Relatively inelastic

Which of the following solutions does the economist suggest to cost inflation in higher education.

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Cutting professor salaries

Make students live at home

Reduce college from four to three years

B and C

In long run a reduction in labor supply would cause output to __ and the aggregate price level to.

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fall ; rise

fall ; fall

rise ; fall

rise ; rise

World environment Day is

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May 5

June 5

July 5

February 5

Which among the following is the sensible theory of sampling.

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Induction

Inertia

Regularity

None of the above

Economics given can be shown by

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An inward shift of the production possibility frontier

A movement down the production possibility frontier

An outward shift of the production possibility frontier

A movement up the production possibility frontier

Disposable incomes is equal to.

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National income Minus taxes

Real GDP

National income Minus taxes

National income Minus Taxes plus transfers

Saving means

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Part of income for investment

Income for boarding

Non consumption of income in the current period

None of the above

"Principles of economics" is the book of

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Robbins

Adam smith

Hicks

Marshall

One of the following is not a necessary characteristics of UDCs

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Low saving ratio

Low capital formation

Disguised unemployment

Insufficient human resources.

If the price 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 about the Y axis

In a matrix , if there is only one row but any number of columns, it is called.

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Row matrix

Column matrix

Raw vector

Both a and c

One of money's primary roles in the economy comes from the use of money to transfer purchasing power to the future This role of money is called.

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store of value

Unit of account

Medium of exchange

Standard of deferred payment

Real GNP is a crude measure of national welfare because it excludes.

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Consumption

Investment

Export's

work in the home

For commodities, X and Y, the possibilities are X is preferred to Y , Y is preferred to X or X and Y are equally preferred, In indifference curve analysis, this is known as the.

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Comparability assumption

Transitivity assumption

Non seriation assumption

Reflexivity assumption

What is the reason for dropping the enumeration process.

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Cost is prohibitive

Time consuming

Large efforts

All of the above

The Lorenz curve shows that

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unemployment does not affect social group

People with low income spend more

People with low income spend less

the degree of income equality in the economy

If import licenses are auctioned off to domestic importers in a competitive market their scarcity value accurse to.

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Foreign corporations

Foreign workers

Domestic corporations

The domestic government

The costs of disinflation would be low if

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Expected inflation falls as inflation falls

Wages and price controls were used

The Phillips curve were nearly horizontal

The Phillips curve adjusted slowly to changes in inflation

Floating exchange rates are __ in the short run

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Stable

Volatile

Predictable

Depreciating

The demand for labor slopes down and to the right because of.

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The law of demand

The iron law of wages

The law of diminishing marginal returns

Economies of scale

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