Question # 1

Suppose an individual spends all his income on only two goods, good X and good Y moreover suppose that you were asked to derive his price consumption curve for good Y Which of the following would be allowed to very.

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Money income

The tastes of the consumer

The price of good X

The price of good Y

If injections are greater than withdrawals.

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National income will increase

National income will decrease

National income will stay in equilibrium

Price will fall

Which of the following is a characteristic of pure monopoly.

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one seller of the product

Low barriers to entry

Close substitute products

Perfect information

The tax is question 52 is

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Progressive's

Regressive

Proportional

None of these

Disposable income is.

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Income less taxes

Income less direct taxes

income less indirect taxes

All of these

If A is preferred to B and B is preferred to C and there is indifference between A and D

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D is preferred to C

B is preferred to D

There is indifference between C and D

There is indifference between B and D

The theory that is equilibrium workers wages will barely be adequate for biological needs is knows as the.

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Labor theory of value

Convergence hypothesis

Subsistence theory of wages

Indicative planning model

When we refer to the hidden economy we mean unrecorded income owing to.

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Tax evasion

Poor statistics

The lags between statistical collection and publication .

Smuggling

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

Foreign capital formation includes

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Foreign direct investment

Grants

Loans

All of these

What the process of summarizing raw data and displaying them on compact statistical table for further analysis.

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Statistical analysis

Data processing

Tabulation

Table construction

A monopolist will maximize profit.

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Where total revenue is maximized

Where the slope of the total revenue function equals the slope of the total cost function

Where average cost is at a minimum

Where all the above are ture

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

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Webster

Bowley

A.M. Tuttle

Prof. H. secrist

The hidden momentum of population growth is caused by

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the demographic transition

Population age structure

the opportunity coast of woman's time

Children contribution to income

Following is the important feature of the Islamic economic system.

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Zakat

Usher

Mudaraba and Musharika

All of these

in GDP 24% share comes from

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Services sector

Import sector

industrial sector

Agriculture sector

in 1950's industrial development was observes only in.

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Food industry

Textile industry

Coal industry

Cement indusry

currency speculation is__________ if speculators bet against market forces that cause exchange fluctuations, thus moderating such fluctuations.

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Destabilizing

Stabilizing

Inflationary

Deflationary

The effect of a tax to offset a negative eternality will be to ________ price and ____ quantity.

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Reduce, reduce

increase, increase

Increase , reduce

reduce, increase

If for the output of worth 1 million the stock of capital worth 4 million is required this will be.

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capital profit ratio

Output profit ration

Capital output ratio

Capital input ratio

The quantity theory of money says that changes in ______ lead to equivalent changes in ______ but have no effect on.

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Prices, wages, output and employment.

Output, prices, employment

Nominal money, the price level output and employment.

Nominal money output prices

In perfect competition price is settled by

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Sellers

Buyers

Producers

Both a and b

As long as the principle of diminishing marginal utility is operating any increased consumption of a good.

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Lowers total utility

Produces negative total utility

Lowers marginal utility and therefore total utility

Lowers marginal utility, but may raise total utility.

If the income tax rate changes from 30% to 40% on incomes over L 30,000 and a person's income is l 31,000 then her marginal tax rate is.

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30%

10%

70%

40%

The product cycle theory of trade is essentially a

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Static short run trade theory

Dynamic, long run trade theory

Zero sum theory of trade

Negative sum theory of trade

According to the Laffer curve as tax rates increase tax revenues.

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Decrease continuously.

Initially decrease and then increase

Rise continuously

Initially increase and then decrease

Anti dumping duties applied to imported goods.

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Are abolished by the world Trade Organization

Result in decreases in consumer surplus for domestic households

Are imposed by industrial countries but not developing countries.

Result in lower priced goods for domestic consumers

A polynomial equation with degree two a called.

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Linear equation

Quadratic equation

Parabola equation

All of the above

Economics is the study of.

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All business, including how they operate why the exist and how they afect

Decisions that people must make because goods and services are limited.

How to save money, spend money invest savings, and balance a checkbook

The stock market the bond market and investment strategies

Big business and its impact on our live

In the short run, the supply of farm commodities is.

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Inelastic

Less elastic

More elastic

Undetermined

According to schumpater

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Monopolies are inefficient

Monopoly profits act as an incentive for innovation

Monopolies are allocatively efficient

Monopolies are productively efficient

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