Question # 1

In a perfectly competitive market if firms are earning an economic profit the economic profit.

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Attracts entry by more firms, which lowers the market price

Can be earned both in the short run and long run

Is less than the normal profit

Leads to a decreases in market demand

A rise in planned investment spending unrelated to the interest rate causes teh equilibrium level of aggregate output to __________ at shifts the _____ curve to the _______

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rise ; LM ;right

rise ; IS ; right

Fall ; LM ; left

rise ;IS; right

Julius smon ha pointed out the applied social sciences in.

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Policy assessment

Policy implementation

Policy formulation

Policy decision

It enables the researcher to acquaint himself with current knowledge in the field in which he is going to conduct his research.

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Social survey

Research proposal

Review of literature

Research design

Which financial instruments provide a buyer the right to purchase or sell a fixed amount of currency at a prearranged price within a few days to a coupled of years.

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Letter of credit

Foreign currency option

Cable transfer

Bill of exchange

The major source of revenue for the government is.

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the collection of property taxes

The collection of the corporates income tax

The collection of excise taxes on gasoline cigarettes and tires

The collection of import and export duties in the conduct of foreign trade

If each element of a raw of column of a square matrix A is zero, then the value of the determinant. is.

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Equal

One

Zero

None of these

Which of the following is a characteristic of monopolistic competition.

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One seller serving the entire market

When each firm sells an identical product

When firms do not compete on a product quality price and marketing

When firms are free is enter and exit the market

The relation ship between the exchange rate and the prices of tradable goods is known as the.

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Purchasing power parity theory

Asset markets theory

Monetary theory

Balance of payments theory

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.

To adjust GDP from market prices to factor cost.

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Add indirect taxes

Subtract subsidies

Deduct indirect taxes and subsides

Deduct indirect taxes and add subsides

Compared to the case of perfect competition, a monopolist is more likely to

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Charge a higher price

Produce a lower quantity of the product

Make a greater amount of economic profit

All of the above

According to the supply side model a reduction in the tax rate.

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Could reduce the size of any budget deficit

Would have no effect on output

Would have no effect on consumption

None of the above

Which of the following causes M1 demand is decrease.

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A fall in the tax rate

An increase in income

A fall in the interest rate

An increase in the use of credit cards

According to solo growth model capital and labor are.

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Not substitution of each other

Substation of each other

Substation in a way

All of these

According to the cost based definition of dumping dumping occurs when a firm sets a product abroad at a price that is less than

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Average total cost

Average variable cost

Average foxed cost

Marginal cost

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

When the marginal propensity to consume is 0.75 the multiplier has a value of.

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4

5

3

2

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

Theories of surplus labor describe that

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In UDCs unemployment rate is high

The margin productivity labor is near to zero

Overpopulation is much more in UDCs

DCs have less uemployment

In the UK mergers can be referred to the competition commission of they create a firm with _______ of the market.

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15%

20%

25%

30%

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

The use of money is more efficient than barter because the introduction of money

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Reduces the need for economic specialization

Reduces the need to exchange goods

Reduce the need for other stores of value

Reduces transaction costs

Despite an expansionary monetary policy an economy experiences a recession the recession could occur in spite of the right ward shift of the LM curve if

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The IS curve shifts left ward

The IS curve shifts right ward

The money supply increase

Taxes are cut

A current account surplus implies that

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The country is a net lender to the rest of the world

The country is running a net capital account surplus

Foreign investment in domestic securities is at very low levels

All of the above

Between 1982 and 1985 prices increased by

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11.4%

25.2%

14.5%

3.6%

Sample implies

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Survey representation of larger whole

Smaller representation of larger whole

Population representation of a larger whole

Census representation of a larger whole

If Supply and demand both decrease simultaneously. Which of the following will happen.

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Price will rise

Quantity sold will rise

Price will fall

Quantity sold will decrease

Which of the following shifts the demand curve for hot dogs leftward.

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An increase in the price of a hot dog bun

A decreases in the price of a hot dog bun

An increased in the price of a hamburger

An increases in the price of a hot dog

As a result of privatization of industries private investor was

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Discouraged

Neutral

Encouraged

None of these

The goal of a pure market economy is to best meet the desires of

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Consumers

Companies

Workers

The government

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