Question # 1

The practice of using fiscal and monetary policy to stabilize the economy is known as.

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Fine turning of deamand

Monetarism

Laissez faire economics

Supply side economics

Which method develop theories.

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Observation

Case study

Research

Survey

The term skewness refers to.

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Bulginess

Lack of symmetry

symmetrical

Normal

The fifth five year plan was an attempt to stabilize the economy and improve the standard to living of the poorest segment of the population from __________ to ____

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1975-80

1980--85

1978-83

None of the above

When the marginal physical product of labor is 800 - 2N , the price of goods is Rs. 2, and the cost of labor is Rs. 4 per unit, the quantity of labor employed is.

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20 Units

800 Units

399 Units

80 units

An income demanded curve of an inferior good is.

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Same in slope

Upward is slope

Downward in slope

None of these

Economics is the science of Wealth who gave this definition.

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J-x Mehta

Marshall

Adam Smith

Robbins

A tax of 17 percent per imported item would be an example of a

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Ad valorem tariff

Specific tariff

effective tariff

Compound tariff

The exchange rate system that best characterizes the present international monetary arrangement used by industrialized countries is.

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Freely fluctuating exchange rates

Adjustable pegged exchange rates

Managed floating exchange rate.

Pegged or fixed exchange rates

A straight line diagram can be drawn knowing the _______ and _____

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Vertical axis and horizontal axis

Intercept and slope

Scale and slope

Intercept and scale.

Which of the following changes shifts the AD curve down and to the left.

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A temporary increase in government purchases.

A rise in the nominal money supply

A decrease in corporate taxes

A decrease in consumer confidence

If the federal reserve whishes to increase the money supply, it should

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Raise the reserve requirement

Raise the discount rate

Buy Treasury securities in the open the market

All of the above

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

In Islamic economic system holding is considered against the right of.

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Entrepreneurs

Labour

Consumers

Producers

Intermediate goods are meant for

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Direct use by the consumers

Further processing

The term do not exist

None

The aggregate demand curve shows the combinations of output and the price level that put the economy on.

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The FE line and the IS curve

The FE line The IS curve and the LM curve

The IS curve

The IS curve and the LM curve

Extension and contraction of demand mean

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Movement on the same demand curve

Movement to high demand curve

Movement to lower demand curve

Movement to another demand curve

The IS curve shows the combinations of output and the real interest rate for which.

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The goods market is in equilibrium

The labor market is in equilibrium.

The financial assets market is in equilibrium

An increase in output will cause the market clearing interest rate to be bid up.

Price elasticity at a given price is not affected by.

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The price of complements

The price of substitutes

The consumer's income

A change in supply

Human wants are

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Always fixed

Limited

Unlimited

Likely to decrease over time

The expected real interest rate minus expected inflation rate.

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Nominal interest rate minus inflation rate

Nominal interest rate minus expected inflation rate.

Expected nominal interest rate minus inflation rate

Nominal interest rate plus expected inflation rate.

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

Government may contribute to inflationary pressure on account of building up large.

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Numbers of employees

Welfare plans

Budget deficits

Expenditure.

What is the period of Rabi Seasons.

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Oct -Dec to April - May

May -June , to July - Aug

Oct - Nov to April -June

January -Mar, to April -May

In the efficiency wage model if the real wage is higher than the market clearing wage so that there in an excess supply of labor.

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Firms will hire new workers at lower wages

Firms will replace high paid workers with low paid formerly unemployed workers

Employers will not hire workers who are willing to work for a lower wage.

Firms will demand a higher level of effort from existing employees

W.W. Rostow considered that the economic development period consist of.

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Two stages

Three stages

Four stages

Five stages

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

Reasoning from general to particular is called.

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Induction

deduction

Observation

Experence

Primary activities

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Forestry and fishing

Steel and chemical industry

Teachers , doctors

None of these

If a consumer's budget constraint is given as P, X,+ Py Y = B thent he absolute slope of the budget line is.

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B

x/y

P/Py

None of these

In perfect competition a firm is.

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Price taker

Price setter

Independent

Dependent

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