Question # 1

A Horizontal demand curve for a good could arise because consumers.

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Are irrational

Are not sensitive to price changes

View this good as identical to another good

Have no equivalent substitutes for this good

If the price is less than the average cost but higher than the average variable costs.

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The firm is making a loss and will should own in the short term.

The firm is making a profit.

The firm is making a loss but will continue to produce in the short term

The firm is making a loss and is making a negative contribution to fixed costs

Which policies are expenditure changing policies.

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Currency devaluation and revaluation

Import quotas and tariffs

Monetary and fiscal policy

Wage and price controls

In the Harrod - Domar equation g = s/v , v is defined as.

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the value of the country a capital stock

The ratio of the country's capital stock to its output.

The change in the country's capital stock

None of the above

A nation experience external balance if it achieves.

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No net changes in its international gold stocks

Productivity levels equal to those of its trading partners

An increases in its money supply equal to increases overseas

Equilibrium in its balance of payments

The income elasticity of inferior goods is

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Zero

Positive

Negative

Unitary

Division of labor is made according to the size of market is the view of

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M.P.Todaro

Leibstein

Rostow

Adam smith

The agricultural price support program is an example of.

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A price celling

A price floor

Equilibrium pricing

None of these

The valued of expenditure multiplier relates.

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The change in autonomous spending to the change in income

the change in consumption to change in income

The change in come to the change is consumption

The change in income to the change in autonomous spending.

The aggregate demand curve

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Is vertical

Slopes upward

Is horizontal

Slopes downward

An increase in price all other, things unchanged leads to.

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Shift demand outwards

Shift demand inward

A contraction of demand

An extension of demand

A determinant composed of all the first order partial derivatives of a system of equations, arranged in ordered sequence is called.

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Hassian determinatn

Jacobian determiant

Discrimianant

First order determinant

Capital, as economists use the term.

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Is the money the firm spends to hire resources

Is money the firm raises from selling stock

Refers to the process by which resources are transformed into useful forms

Refers to things that have already been produced that are in turn used to produce other goods and services.

If the demand curve for a good is downward sloping then the good must be.

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Normal

Inferior

Giffen

Either a or b

In economics, the term 'scarcity' refers to the fact that

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Everything worthwhile costs money

No society is able to produce enough to fully satisfy the desires of people for goods.

Even in wealthy societies, like the united states, some people are poor

sometimes shortages of product result if its price is set too low.

In any urban are there are people who have had healed wounds

The econometric problem of errors in variables leads to

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Ballasted estimates of regression coefficients.

Autocorrelation

Unbiased estimates of regression coefficients but non minimum variance of estimated coefficients.

None of the above

During periods of negative demand shocks deficit target reductions such as those mandated in the Gramm Rudman Hollings Act would tend to.

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Stimulate the economy and increase empolyment.

Result in additional recessionary declines in employment and income

Stimulator defiance spending

Have an automatic stabilizing impact upon the economy

If British Residents want more French francs to purchases more fresh wine, other things equal than the equilibrium value of the pound against the French farce will.

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Rise

fall

not changes

fluctuate

If the price of an apple increases.

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Its opportunity cost decreases

Its opportunity cost increases

The substitution effect does not occur

The income effect does not occur

The price of Ketchup at a market increases by 12.5% per can, which results in a decrease in quantity purchased by 40% per week, the demand is.

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Relatively elastic

Relatively inelastic

Perfectly elastic

Perfectly iinelastic

Domestic borrowing includes the government borrowing through

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National saving center

Commercial banks

State Bank

All of these

A monopolist will maximize profit.

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Where total revenue is maximized

Where the slope of the total revenue function equals the slope of the total cost function

Where average cost is at a minimum

Where all the above are ture

Research adopted by

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Scientific method

Political method

Invidia method

Public method

The term of trade is given by theprices.

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Paid to all goods exported by the home country

Received for all goods exported by the home country

Received for exports and paid for imports.

Of primary products as opposed to manufactured products.

In 1950's liberal policy was adopted regarding.

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Export

Imports

Both

Non

The abolition of income tax would probably ________ the number of workers in employment and____________ the equilibrium. rate of unemployment.

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increase ; decrease

increase ; increase

reduce ; increase

reduce ; reduce

Observation ,t he observer have been old specifically what is to be observed.

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Structured

Discussed

Controlled

Participated

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

A decrease in the quantity of money supplied shifts the money supply curve to the________ and the equilibrium interest rate

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right ; fall

right ; rises

left ; falls

left ; rises

A typical demand curve cannot be

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Rising upwards to the right

A straight line

Concave to origin

Convex to origin

The IMF gives

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Short term credits

Short term and long term creditors

Both long term credits

None of these

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