Question # 1

Per Capita income is obtained by dividing National income by

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Total labor Force in the country

Unemployed Youth in the country

Total population of that country

None

For interior commodities income effect is.

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Zero

Negative

Infinite

Positive

If the expected rate of inflation rose at the same time the natural rate of unemployment rose the Philips curve.

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would shift down

would shift up

Would not move

Might shift up or down or not move depending on which effect was larger.

Given a proportional income tax and a government budget that is currently in balance, an increase in autonomous investment ceteris paribus, Increases equilibrium income and the budget.

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Remains is balance

Has a surplus

Has a deficit

None of these

If there are 50 firms in a industry each selling 2% of the total sales the concentration ratio is.

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50%

2%

8%

100%

An increase in demand for a product should.

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Increase equilibrium price and quantity.

Decrease equilibrium price and quantity.

Increase equilibrium price and decrease quantity.

Decrease equilibrium price and increase quantity.

A specific tax on sellers will

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shift the demand curve to the right

Shift the demand curve the left

Shift the supply curve to the right

Shift the supply curve to the left

All of the following are obstacles to international economic policy coordination except.

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Different national objectives are institutions

Different national political climates

Different phases in the business cycle

Different national currencies.

John Stuart Mill was the founder of the

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Theory of reciprocal demand

Theory of absolute advantage

Theory of comparative advantage

Theory of mercantilism

The "balance of trade" is a record of.

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Exports and imports of financial assets

The current account plus capital account

The net export of goods and services

The value of merchandise exports minus imports

According to the________ the export of the product that embodies large amounts of the relatively cheap, abundant resorce results in an increase in its price and income of the resource used intensively in the import competing product decrease as its demand falls.

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Ricardian equivalence theorem

Smithian equivalence theorem

Stolpher Samuelson theorem

Bemanke Greenspan theorem

"The quantity demanded increases as its price increases and falls as its price falls" is called given goods, is presented by.

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Allen

Marshall

Adam smith

Robert griffin

the theory of overlapping demands predicts that trade in manufactured goods is unimportant by countries with very different .

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Tastes and preferences.

Expectations of future interest rate levels

Per capita income levels

Labor productivities.

In the classical model of Ricardo the direction of trade is determined by

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Absolute advantage

Comparative advantage

Physical advantage

Which way the wind blows

In contract to perfectly competitive markets monopolists

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Do no have to worry about market demand

Sell only if demand is inelastic

Can never incur an economic loss

Can earn an economic profit indefinitely

In the short run no firm operates with a loss unless

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Variable cost equals fixed cost

Variable cost falls short of fixed cost

Total revenue covers variable costs

Total revenue covers fixed cost

Ad valorem tariffs are collected as

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Fixed amounts of money per unit traded

A percentage of the price of the product

A percentage of the quantity of imports

All of the above

Rorschach test comes under visual projective.

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method

research

techniques

Audio

When we know the quantity of a product that buyers wish to purchases at each possible price we know.

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Demand

Supply

excess demand

Excess supply

Skills that can be transferred to other employers are called.

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General skills

Specific skills

Non pecuniary skills

All of the above

As the price of a good increases, the change in the quantity demanded can be shown by

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Shifting the demand curve leftward

Shifting the demand curve rightward

Moving down along the same demand curve

Moving up long the same demand curve

If economics when we say that people are rational, we mean that they.

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Never make mistakes

Try to get what they desire as best they can, given the limitations they face.

Logically figure out what to do

Behave in a random unpredictable manner

Defined as a tentative or working proposition suggested as a solution to a problem.

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Research

Objective

Hypothesis

Concepts

An increase in consumption at any given level of income is likely to lead to.

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a fall in savings

An increase in exports

A fall in taxation revenue

A decrease in import spending

A 15% VAT is a.

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Proportional income tax

Fixed excise duty

Ad valorem indirect tax

None of the above

In pure monopoly what is the relation between the price and teh marginal revenue.

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The price is greater than the marginal revenue

The price is les than the marginal revenue

There is no relation

They are equal

Profit is measured by

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Revenue - Fixed costs

Fixed cost + revenue

Revenue - sales

Revenues - total costs

Deep ecology places emphasis upon

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Life

Man

Environment

Relationship

If your income during one year is L 10,000 ad the following year it is L,12,000 then it has grown by

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20%

2%

12%

15%

Economics given can be shown by

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An inward shift of the production possibility frontier

A movement down the production possibility frontier

An outward shift of the production possibility frontier

A movement up the production possibility frontier

The current account includes

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The value of trade in merchandise

Services

Unilateral transfers

All of the above

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