Question # 1

Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account.

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Deficit

Surplus

Revaluation

Devaluation

The efficiency wage model can be modified to allow real wages to vary over the business cycle by assuming that.

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Workers effort may depend on the unemployment rate and the real wage

During a recession labor supply will decrease reducing the efficiency wage

During a recession productivity wil fall causing a reduction in the efficiency wage

During a boom labor demand will increase, causing the efficiency wage to rise

A technological improvement will

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Increases the desired capital stock

Decrease the desired capital stock

Have no effect on the desired capital stock

Have the same effect on the desired capital stock as an increase in corporate taxes.

Which of the following events will lead to a decrease in the demand for money.

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An increase in the level of aggregate output.

A decrease in the supply of money

A decrease in the interest rate

a decrease in the price level

Changes in subjective or objective factors.

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Never affect the consumption function

Always cause downward shifts of the consumption function

Always cause upward shifts of the consumption function

May cause upward or downward shifts of the consumption function

Research is directed towards the solution of a

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Problem

Hypothesis

data

Survey

In a perfectly competitive labour market firms are wage takers and the marginal cost of labour equals.

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the average cost of labour

The marginal product

The marginal revenue

The total cost of labour

Starting from a balanced budget, for a given tax rate an increase in income will cause the government budget to.

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Move into surplus

Move into deficit

Remain unchanged

None of these

In the 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

Which of the following events would lead to an increase in the marginal product lf labor for every equantity labor.

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An increase in the real wage

A decrease in the real wage

A favorable supply shock such as a fall in the price of oil

an adverse supply shock such as a reduced supply of raw materials.

A circular constellation of force tending to act and react upon each other in such away to keep a poor country in a state of poverty is termed as.

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Vicious circle of poverty

Low capital formation

Low development

disguised unemployment

According to Keynes, when the great depression started the government should be.

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Done nothing

Decreased the money supply

Had a large increase in government spending.

Enacted high tariffs such as the smoot Hawley tariff

The function of money do not include.

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an exchange of purchasing power

A unit of account

A medium of exchange

A store of value

The epigram "time is money" expresses , in part, the concept of.

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Opportunity cost

Comparative advantage

Specialization

Efficiency in production

Social science Research

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Explain Problem

diagnosis problem

Recommend problems

Formulate probelms

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

A model in which individual producers act as price setters because there are only a few sellers and the product they sell is not standardized, is called.

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Imperfect competition

Perfect competition

Monopoly

Monopsony

If the Federal Reserve wishes to increase the money supply it should.

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Raise the reserve requirement

Raise the discount rate

Buy Treasury securities in the open market

All of the above

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

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Webster

Bowley

A.M. Tuttle

Prof. H. secrist

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

A set containing only one element is termed as

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Unit set

Singleton set

Both a and b

None of these

The increase in total cost when one more units is produced is known as.

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Marginal cost

Opportunity cost

Limited cost

Average cost

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

A firm's total labor cost when six workers are employed is Rs.580 When seven workers are employed the total labor cost is Rs.700 the Rs. 120 change in total labor cost represents.

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Marginal physical product

Marginal resources cost

Marginal cost

Marginal revenue

i- statistical laws are not exact

ii- statistics reveals the entire story

choose the correct from the following.

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Both the statements are correct

Only the first statement is correct

Only the second statement is correct

Both the statements are wrong.

When a tax is levied on a good.

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The market price falls because demand declines.

The market price falls because supply falls.

A wedge is placed between the price buyers pay and the price sellers receive

The market price rises because demand falls.

Given the cost data indicated in the table above the average variable cost of producing 7 units of output is

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Rs.37

Rs.29

Rs.31

Greater than Rs.37

The study which wants to determine the frequency of occurrence of an event of its association with something.

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Descriptive

Explorative

Formulate

Diagnostic

The tax is question 52 is

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Progressive's

Regressive

Proportional

None of these

If the price elasticity of demand for a product in market A is -0.2 and in market B is -3 a price discriminator will charge.

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The higher price in market A

The higher price in market B

The same price in both markets

There are many sellers

A monetary expansion is characterized by

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Rising output and interest rates

Rising output and falling interest rates.

Constant output and falling interest rates

Falling output and interest rates

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