Question # 1

The long run Phillips curve is

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Vertical

Horizontal

Upward sloping

Downward sloping

In the ISLM frame work a contractionary fiscal policy causes aggregate output to ___________ and the interest rate to

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Increase ; increase

Increase ; decrease

decrees ; decrease

decrease ;Increase

A temporary decrease in government purchases would cause.

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A rightward shift in the saving curve and a leftward shift in the investment curve

A rightward shift in the saving curve and a rightwards shift in the investment curve.

A right ward shift in the saving curve but no shift in the investment curve

No shift in the saving curve but a left ward shift in the investment curve.

Top footballers land to earn more than lecturers because.

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Footballers give more entertainment

Lecturers are lazy

The labour markets are imperfect

Top footballers are relatively scarce in relation to lecturers

Extensive subsistence agriculture is found in

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Warm

Moist

Low latitude

All of these

The most frequently occurring score in distribution.

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Mean

Mode

Median

Quartile

The type of business in which an individual has unlimited responsibility for the debts of the organization.

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Partnership

Corporation

Monopoly

None of these

Ineven A occurs the payoff will be Rs.5,670.00 . the probability of event A occurring is .87 What is the expected payoff of event A.

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Rs.5,670.00 9d)

Rs.4,832.10

Rs. 4,932.90

Rs.5000.00

Which of the following results in an increase in the value of the dollar.

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Interest rates n the united states decrees, ceteris paribus

Interest rates in foreign countries increase, ceteris paribus

Price level in the United States increases, ceteris paribus

Productivity in the united states increases, ceteris paribus

Naveed purchases product M for which his income elasticity of demand is negative Apparently product M is.

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A necessity

An independent good

An inferior good

A luxury good

The money multiplier is 4, and the money creating potential of the banking system is Rs. 40,000,000. The legal reserve ratio and the excess reserves are.

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40 percent and Rs. 4,000,000

40 percent and Rs. 10,000,000

25 percent and Rs. 2.500,000

25 percent and Rs.10,000,000

If government tax function is T = 80 + .6 Y and the marginal propensity to consume is a constant 8 and increase in GNP of Rs.50 would cause consumption to.

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Increase by Rs.16

Decrease by Rs.16

Increase by Rs.40

Decrease by Rs.30

A temporary adverse productivity shock would.

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Shift the labor supply curve upward

Decrease the level of employment

Decrease future income

Decrease the expected future marginal product of capital

The appropriate expenditure switching policy to correct a balance of payment surplus is.

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Currency revaluation

Currency devaluation

Expansionary monetary policy

Contractionary fiscal policy

A decline expected future output would cause the IS curve to.

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Shift up and to the right

Shift down and to the left

Remain unchanged

shift up and to the right only if people face borrowing constratints.

If the exchange rate is above the equilibrium level.

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There is excess demand and teh exchange rate will fall

There is excess supply and the exchange rate will fall

There is excess demand and the exchange rate will rise

There is excess supply and the exchange rate will rise

the mar mist theory of dialectical materialism theoretically follows a sequence

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synthesis thesis antithesis

Antihesis synthesis thesis

thesis antithesis synthesis

synthesis antithesis thesis

The overall Budget Deficit is financed from

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External borrowing

Non bank borrowing domestically

Bank borrowing plus the above two at a and b

None of the above

A change that increases the real money supply relative to real money demand causes.

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The LM curve to shift down and to the right.

The LM curve to shift up and to the left

The IS curve to shift down and to the left

The IS curve to shift up and to the right.

The single European Act committed_ governments to a ___ in 1992

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European union, single market

Western European, single currency area

European union, single currency area

Western European, single market

A monopoly may be self perpetuating because profits may be used for

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research

Cost saving

Technical advance

All of the above

If the monopolist maximizes profits when marginal revenue equals marginal cost equals average cost economic profits must be.

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Negative

Positive

Zero

Either a or c

What technical terminology do economists use to refer to how much the money will multiply as this process unfolds.

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The multiplier

The money multiplier

Required reserve ratio

Open market operations

A tariff can________ raise a country's welfare.

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Sometimes

Never

Always

None of these

Economists tend to disagree primarily about.

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The implications of scarcity for our economy

Which resources are free

Topics in positive economics

Issues of normative economics

in the keynesian model in the short run the amount of employment is determined by the effective labor demand curve and the level of.

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Prices

Output

The real interest rate

The supply of labor

Fractional unemployment arises when

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Unskilled or low skilled workers find it difficult to obtain desirable long term jobs

Labor must be reallocated from industries that are shrinking to areas that are growing.

Workers must search for suitable jobs and firms must search for suitable workers.

Output and employment are below full employment levels

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

Import quotas tend to result in all of the following except.

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Domestic producers of the imported good being harmed

Domestic consumers of the imported good being harmed

Prices increasing in the importing country

Price failing in the exporting country.

Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account.

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Deficit

Surplus

Revaluation

Devaluation

The costs of inflation are

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Shoe leather costs

Menu costs

Income redistribution

All of the above

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