Question # 1

An adverse supply shock that is permanent shifts which curve in addition to the curves shifted by.

One that is temporary.

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The LM curve

The IS curve

The FE line

The labor demand curve

Inflation.

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Reduces the cost of living

Reduces the standard of living

Reduce the price of products

Reduces the purchasing power of a price

In the case of an expansionary ___ policy the interest rate rise while in the case of an expansionary _______ policy the interest rate falls.

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monetary ; monetary

monetary ; fiscal

fiscal ; monetary

fiscal ; fiscal

The "compensated" demand curve is the demand curve that.

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Shows only the income effect

Shows only the substitution effect

Shows both the income and substitution effects

Shows the Geffen good demand curve

In today world most countries impose tariffs

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Only on imports

Only on exports

On both imports and exports

On imports exports and nontrade goods

If the marginal revenue is positive

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Selling another unit will increase total revenue

Selling another unit will increase profits

Selling another unit will increase cost

Selling another unit will increase average revenue

Alfred Marshall formalized and then popularized the analytical technique known as

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General equilibrium analysis

Felicific calculus

Partial equilibrium analysis

Differential equations

Law of variable proportion sis applicable in.

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Short run

Long run

Anytime

Fore ever

An expenditure reducing policy would consist of a decrease in

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The par value of a currency

Government expenditures

Import duties

Business or household taxes

Suppose your company is in equilibrium will its capital stock at its desired level A permanent increase in the depreciation rate now has what effect on your desired capital stock. i

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Raises it because the future marginal productivity of capital is higher

Lowers it because the future marginal productivity of capital is lower

Raises it because the user cost of capital is now lower

Lowers it beacause the user cost of capital is now higher

How much is contributed by agriculture sector to GDP of the country.

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18.5%

21.8%

26.5%

34.5%

Supply side policies are most appropriate to cure.

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Involuntary unemployment

Cyclical unemployment

Voluntary unemployment

A fall in aggregate demand

An increase in money _______ shifts the LM curve to the _____ causing the interest rate to fall and output to rise

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demand ; right

demand ; left

supply ; right

supply ; left

Law of demand is not applicable on

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Daily goods

Scarce goods

Consumer goods

Producer goods

The opportunity cost of holding currency decrease when

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Income decreases

The interest rate on bonds decreases

The interest rate on money decrease wealth decrease

Wealth decreases

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

Suppose that the supply curve of lin is highly inelastic if the demand curve of lin decreases and increases cyclically along the supply curve of lin then in this market the size of the quantity fluctuations will be _____ the size of the price fluctuations.

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Relatively greater than

Relatively less than

the same as

Any of the above

Total Share of agricultural sector in employment is.

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60%

43%

55%

None of these

Which of the following measures is the best measure of money as a medium of exchange.

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M1

M2

M3

None of the above

The monopolization of the competitive market results in a deadweight loss to society of

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RSJK

JKL

THJ

RSJL

The equilibrium level of employment achieved after the complete adjustment of wages and prices, is known as the.

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Zero unemployment level of employment

Natural state

Invisible handshake

Full employment level of employment

Yin has defined case study is investigating the contemporary phenomena of.

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Natural

Real life

Inexplicable

Explainable

Which of the following products will have an elastic demand.

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Flour

Cloth

Honda city

None of these

Firms are assumed to ____ costs and to _______ profit.

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Incur , desire

Pay ; make

Change ;earn

Minimize ; maximize

Labour productivity measures.

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The output per worker

The output per machine

Total output

Marginal output

Research is directed towards the solution of a

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Problem

Hypothesis

data

Survey

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

MRSxy being 6 means

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Consumer is willing to give up 6 units of x for one of y

Preference for y is 6 times that of x

Both of the above

None of these

Sum of squares of the deviations about mean is.

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Maximum

Minimum

zero

one

For interior commodities income effect is.

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Zero

Negative

Infinite

Positive

Which of the following is NOT an example of non price competition the auto industry.

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Zero percent auto loans

Television advertising

Establishing market niches

End of the year discounts

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