Question # 1

in GDP 24% share comes from

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Services sector

Import sector

industrial sector

Agriculture sector

An increase in the wage rate.

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Will usually lead to more people employed

Will decrease total earnings if the demand for labour is wage elastic

Is illegal in a free market

Will cause a shift in the demand for labour

A square matrix A, such that A = A ' is called a

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Symmetric matrix

Skew symmetric matrix

Singular matrix

Rank of a matrix

An invention that speeds up the internet is an example of.

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An income effect

An increase in labor

A substitution effect

A supply shock

If a price increase of good A increases the quantity demanded of good B, then good B is a.

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substitute good

Complementary good

Bargain

Interior good

In the classical model of Ricardo the direction of trade is determined by

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Absolute advantage

Comparative advantage

Physical advantage

Which way the wind blows

The Hecksher Ohlin theory explains comparative advantage as the result of difference in countries.

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Relative abundance of various resources.

Relative costs of labor

Economies of large scale production.

Research and development expenditures.

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.

To move from point E to point E1 is consistent with.

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Expectations of a constant price level

Adaptive expectations that have no adjustment for the period immediately following a change in the actual price

Rational expectations and NCM

A and B

The cost of using capital services is the

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wage rate of capital

Interest charges

Marginal capital cost

Rental rate for capital

The signed minor of the matrass A is called.

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Adjoin

Co factor

Minor

Rank

Why do people keep currency in their pockets when bank deposits pay interest.

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Because banks might steal your money

Because currency is more liquid

Because bank deposits lose value due to inflation

Because bank deposits lose value due to exchange in interest rates.

Research based on empirical evidences and.

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scientific experience

Political experience

Rational experience

Observable experience

Which of the following would most likely shift the production possibilities curve for a nation outward.

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A reduction in unemployment

An increases in the production of capital goods

A reduction in discrimination

An increase in the production of consumer goods

In monopoly which of the following is true.

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There are many buyers and sellers

There is one main buyers

There is one main seller

The actions of one firm do not affect the market price and quantity.

the purpose of research is to discover answer to questions through application of.

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Scientific method

scientific research

Scientia procedure

Social science research

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

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An excess demand for that currency exists in the foreign exchange market.

An excess supply of the currency exists in the foreign exchange market

The demadn for foreign exchange shifts outward to the right

The demand for foreign exchange shifts backward to the left.

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

In Production of goods and services tradeoffs exist becasue.

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Buyers and sellers often negotiate prices

Society has only a limited amount of productive resources

Not all production is efficient

Human wants and needs are limited at a particular point in time

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

An elasticity coefficient of -1 means that

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The demand curve is perfectly inelastic

The demand curve is parfectly elastic

The relative changes in price and quantity are equal

Expenditures on the good would increase if price were reduced.

In the money market a condition of excess demand for money can be eliminated by a __________ in aggregate output or a ____ in the interest rate both of which reduce the quantity of money demanded.

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rise ; rise

rise; fall

fall ; rise

fall ; fall

Art gallery argument give emphasis to aesthetic aspect of.

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Diversity

Nature

Life

None of these

International trade forces domestic firms to become more completive in terms of.

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The introduction of new products

Product design and quality

Product price

All of the above

Which of the following would decrease aggregate demand.

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Increased consumption

Increasing export revenue

Increased taxation revenue

Increased investment

The productivity curve

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Is given by the labor productively

Shows the change in real GDP per hour of labor as the amount of capital per hour labor changes

Shows the change in technology

Is given by the equation Y = F ( L,K, T)

A rise in the real exchange rate will __ the competitiveness of the domestic economy.

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Increase

reduce

do nothing do

all of these

Suppose velocity is constant and the real income elasticity of the demand for money is less than one then estimating inflation as money growth rate minus real growth rate.

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Overestimates inflation

Underestimates inflation

Is an erratic estimate of inflation

Remain an accurate estimate of inflation.

An allocation is Pareto efficient if no reallocation of resources would make some people_______ whiteout making others

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Worse off, worse off

better off, better off

better off, worse off

equal , unequal

Which of the following is the government most likely to subsidies.

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Negative externalities

Positive externalities

Monopolies

O ligopojies

A monopolistically competitive firm differs from a perfectly competitive firming that unlike the perfectly competitive firm it.

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Faces a downward sloping demand curve

Can change the characteristics of its product.

Can vary the price of its product.

All of the above

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