Question # 1

Ti access internet services consumers must use a computer if computer prices fall, what is the effect on the demand for internet services.

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The demand for internet services increases.

The demand for internet services decreases

The demand for internet services does not change

The demand for internet services could increase, decrese, or stay the same depending on other factors.

"Treating an individual as typical of a group" in the definition of.

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Pure discrimination human capital

Statistical discrimination

Human capital

Specific skills

If an individual has a money income M of Rs. 999 , the price of X is rs.7.00 per unit and ithe price of Y is Rs. 300 per unit find the equation for the budget lines.

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Y = 333 - (7/3) x

Y = 142 - (7/3) x

Y = 142- (3/7) x

Y = 323 - (7/3) x

Say's law states that

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Supply creates its own demand

Demand creates its own supply

There is no such things as a free lunch

Macro economics policy activism is essential to ensure full employment.

The commission's authoritative figures include a Chairman who is the_____ assisted by the deputy chairman and a science advisor.

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Prime Minister

President

Chairman Senate

None of these

If there is cyclical unemployment in the economy the government might.

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Increase interest rates

Encourage savings

Cut taxes

Reduce government spending

If a maximum price is set below equilibrium there will be.

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A price fall

A price increase

Excess supply

Excess demand

facts are empirically verifiable

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Research

Obserevations

theory

Data

Observation ,t he observer have been old specifically what is to be observed.

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Structured

Discussed

Controlled

Participated

A change in autonomous spending is represented by.

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A movement along a spending line

A shift of a spending line

A change in a behavioral coefficient.

None of these

The through of a business cycle occurs when ______ hits its lowest point.

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Inflation

The money supply

Aggregate economic activity

The unemployment rate

International trade during the 19th century was characterized by.

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Extensive barriers to trade

Operation of the gold standard

A small volume of international trade

None of these

If equilibrium national income is less than the full employment the gap can be closed by.

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Raising taxes

Decreasing government expenditures

Raising taxes and decreasing government expenditures.

Increasing government expenditures.

Supply is likely to be more price elastic.

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In the short run rather than the long run

If factors of production are relatively immobile between industries.

If there are very few producers

If it is easy to expand output

Food crops cover about __________ of cropped areas

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75%

85%

15%

35%

Which stage guides from the planning stage to the stag of drawing of final conclusions.

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Numerical facts

Statistical methods

Data

None of the above

If input price adjusted very slowly to output prices, the Phillip's curve would be.

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Downward sloping

Vertical or nearly vertical

Upward sloping

Horizontal or nearly horizontal

Which of the following changes shifts the SRAS curve up.

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Ani increases in the labor force

A decrease in government purchases

An increase in firms costs

An increase in the money supply

Large difference is inflation rates among countries are almost always the result of large difference in.

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Productivity

Real income growth

The growth rates of real money demand

The growth rates of nominal money supplies

in UDCs a potential resource of saving is

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Structural unemployment

Over employment

Domestic saving

Disguised unemployment

When stock market is falling it is calle.

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Bearish

Bulish

Imperfect competition

Fall down

A utility contour shows all the alternative combinations of two consumption goods that.

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Can be produced with a given set of resources and technology

Yield the same total of utility

Can be purchased with a given budget at given prices

Equate the marginal utilities of these goods and therefore make the consumer indifferent between them.

Friedman and phelps suggested that there should not be a stable relationship between inflation and unemployment, but here should be a stable relationship between

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Anticipated inflation and frictional unemployment

Anticipated inflation and cyclical unemployment

Unanticipated inflation and frictional unemployment.

Unanticipated inflation and cyclical unemployment

A Rs.10 increase in autonomous investment spending shifts IS

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Rightward by Rs.10

Leftward Rs.10

Rightward by Ke (Rs.10)

Leftward by Ke (Rs.10)

Less demand in the economy may increase unemployment this may lead to less spending which may reduce demand further This is called.

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The upward accelerator

The downward multiplier

The upward PPF

The downward MPC

Market failure may arise because of.

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Imperfect competition

Taxation

Externalities

All of the above

Julius smon ha pointed out the applied social sciences in.

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Policy assessment

Policy implementation

Policy formulation

Policy decision

In an industry with a falling long term supply curve, which of the following is true.

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Industry unit cost are constant

Industry unit costs are decreasing

Industry unit costs are increasing

Industry unit costs cannot be determined

In the Keynesian corss diagram, and cline in autonomous consumer expenditure causes the aggregate demand function to shift down the equilibrium level of aggregate output to___________ and the IS curve to shift to the.

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up ; left

up ; right

down ; left

down ; right

In the Keynesian cross diagram an increasing investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift ______ and the equilibrium level of aggregate output to rise and the IS curve to shift to the

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up ; right

up ; left

down ;left

down ; right

The "compensated" demand curve is the demand curve that.

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Shows only the income effect

Shows only the substitution effect

Shows both the income and substitution effects

Shows the Geffen good demand curve

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