Question # 1

Import substitution is an example of.

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The principle of comparative advantage

The principle of absolute advantage

An outward looking growth strategy

An inward looking growth strategy

The agricultural price support program is an example of.

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A price celling

A price floor

Equilibrium pricing

None of these

When the price level increases 25% starting from a price level equal to 100, a Rs. 1000 bond will have a real value of .

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Rs. 800

Rs.1250

Rs.750

Rs.666

The term household production refers to

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Output produced by forcing children to work

Output produced by workers who are telecommuting

Services provided directly to households such as lawn mowing by landscape companies.

Output produced at home

Headquarter of IMF is located in.

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Geneva

Washington DC

London

New york

The tax is question 52 is

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Progressive's

Regressive

Proportional

None of these

The price elasticity of demand will increase with the length of the period to which the demand curve pertains because.

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Consumers incomes will increase

The demand curve will shift toward

All prices will increase over time

Consumers will be better able to find substitutes

A tax of 18 cents per unit of imported cheese would be an example of a.

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Compound tariff

Effective tariff

Ad valorem tariff

Specific tariff

Barriers to entry do not include

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Patents

Internal economics of scale

Mobility of resources

High investment costs

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.

The Laffer curve depicts

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A trade off between tax rates and government receipts

Price levels and real income

government deficits and unemployment

Tax rates and infixation

The rate of which central bank lends to commercial banks is known as

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reserve rate

Discount rate

Open market operation

None

If a tax of Rs. 6 per units is imposed upon the suppliers, then.

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Tax revenue will equal Rs. 108

Price increases by Rs. 4

Quantity decreases by 4 units

Producers pay Rs. 36

Economists use the term marginal utility to mean.

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Additional satisfaction gained divided by additional cost of the last unit.

Additional satisfaction gained by the consumption of one more unit of a good

Total satisfaction gained when consuming a given number of units.

The process of comparing marginal units of all goods which could be purchased

In the short run an increase in the quantity of money ______ real GDP and _ the price level.

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increases ; raises

does not change ; lowers

decreases ; raises

decrease ; lowers

Research may be made through either arbitrary method of

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Rational method

Scientific method

Imagination method

Vague method

The celling in the 1972 land reforms was lower being 150 acres for irrigated and ________ acres for unirrigated.

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200

300

400

None of these

Application of Modern technology to increase the yield is due to

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Subsistence farming

Mechanization

Green revolution

None of these

International trade in goods and services tends to

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Increase all domestic costs and prices

Keep all domestic costs and prices at the same level

Lessen the amount of competition facing home manufactures.

Increase the amount of competition facing home manufacturers

An example of nondiscretionary fiscal policy would be.

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The operation of the welfare state

A Federal jobs program adopted to stimulate consumption

A tax cut adopted to stimulate consumption

An interest rate cut implemented to stimulate consumption

For perfect competition ot work there must be

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Many buyers and sellers

A standard product

Free entry and exit

All of the above

A system of systematically interrelated concepts, definitions and propositions that are devanced to explain and predict phenomena define dby

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Jack gibbs

PV Young

Black

Roae Arnold

Cardinal approach theory was presented by

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Marshall

Adam smith

Robbins

Hicks

The most important source of wage differentiate are.

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Reginal variation

Unionization

Relative danger

Skills

At the intersection of AD and AS equilibrium is achieved in.

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The goods market

The money market

The labour market

All of the above

Given the Is -LM construction of the figure above an unexpected increase in the price level, in the absence of any policy adjustment will.

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Increase both interest rates and GNP

Reduce both interest rates and GNP

Increase GNP but cause interest rates to tall

Increase interest but cause GNP to fall.

A Six year development plan was prepared on the recommendation of Colombo consultation Committee from _____ to.

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1951 -57

1952-58

1953-59

None of the above

Identification with nature is the grounding

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Bio centrism

_{Deep ecology}

Anthropocentrism

Holism

Currency speculations is_________ if speculators bet against market forces that cause exchange functions, thus moderating such fluclutions.

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Destabilizing

Stabilizing

Inflationary

Deflationary

When a nations money supply is Rs.1200 billion and the nominal Gros National product is Rs.4800 billion the velocity of money is.

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0.25

4

0.4

Rs.4 billion

Social science research is a systematic method o exploring, analyzing and extend, corrector or verify knowledge of human behavior and.

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Aqua life

Natural life

Social life

Envioment

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 central economic problem in an economy refers to.

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The prevalence of unemployment

To allocate scarce resources between competing uses.

Consumers having less money than they would like

ensure that production costs are converted by sales revenue.

If desired spending in the economy exceeds income we would expect.

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House hold to save more

Firm to produce less

Firms is produce more

the MPC to change

In Balance of payments accounting tourism and travel are classified in the

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Merchandise trade account

Services account

Unilateral transfers account

Capital account

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