Friday, March 5, 2010

:::|| VU Askari ||::: economic mcqs.

please any one solved these questions



Question No: 34    ( Marks: 1 )    - Please choose one

 Suppose net exports decreases by $100 million due to a slump in foreign economies. If the value of multiplier is 2, what will happen to the domestic aggregate demand curve?

       ► Since less will be produced, the aggregate demand does not shift. The aggregate supply curve shifts to the left by $100 million at each price level.

       ► It shifts to the left by $50 million at each price level.

       ► It shifts to the left by $100 million at each price level.

       ► It shifts to the left by $200 million at each price level.

   

Question No: 35    ( Marks: 1 )    - Please choose one

 Which of the following is TRUE?

       ► Accelerator coefficient = Marginal capital / output ratio.

       ► Accelerator coefficient > Marginal capital / output ratio.

       ► Accelerator coefficient < Marginal capital / output ratio.

       ► None of the given options.

   

Question No: 36    ( Marks: 1 )    - Please choose one

 Which of the following is the best measure of the economic cost of higher unemployment?

       ► The loss of potential exports for the economy.

       ► The loss of tax revenue.

       ► The increase in social security benefits paid by the government.

       ► The output of goods and services the unemployed workers could have produced.

   

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Question No: 37    ( Marks: 1 )    - Please choose one

 Which of the following would be expected to increase the natural rate of unemployment?

       ► A reduction in the number of new entrants into the labor force.

       ► An increase in the growth rate of the capital stock.

       ► A reduction in the corporate profits tax.

       ► An increase in the level of unemployment compensation paid to unemployed workers.

   

Question No: 38    ( Marks: 1 )    - Please choose one

 Evidence suggests that all countries with very high _______ also have very high _______.

       ► Inflation rates; money growth rates.

       ► Unemployment rates; GDP growth rates.

       ► GDP growth rates; government budget deficits.

       ► Government budget deficits; inflation rates.

   

Question No: 39    ( Marks: 1 )    - Please choose one

 In the equation of exchange, if velocity is stable in the long run then:

       ► %∆V = 0.

       ► %∆V = 1.

       ► %∆V is a positive constant value > 0.

       ► %∆V = infinity.

   

Question No: 40    ( Marks: 1 )    - Please choose one

 Disposable Personal Income

$

Consumption

$

100

140

200

220

300

300

400

380

500

460

Refer to the above table, when disposable personal income is $400, what is the amount of personal saving?

       ► −$40.

       ► −$20.

       ► $0.

       ► $20.

   

Question No: 41    ( Marks: 1 )    - Please choose one

 The act of increasing the price of one country's currency in terms of other currencies by the government is known as:

       ► Revaluation.

       ► Devaluation.

       ► Appreciation.

       ► Depreciation.

   

Question No: 42    ( Marks: 1 )    - Please choose one

 If net exports are negative, this implies that the country has a:

       ► Trade surplus.

       ► Trade deficit.

       ► Government budget surplus.

       ► Government budget deficit.

   

Question No: 43    ( Marks: 1 )    - Please choose one

 If net exports are positive, this implies that the country has:

       ► Trade surplus.

       ► Trade deficit.

       ► Government budget surplus.

       ► Government budget deficit.

   

Question No: 44    ( Marks: 1 )    - Please choose one

 A change from $1.00 = Rs. 82.00 to $1.00 = Rs. 80.00 represents:

       ► An appreciation of the dollar.

       ► An appreciation of the rupee.

       ► Depreciation of the rupee.

       ► None of the given options.

   

Question No: 45    ( Marks: 1 )    - Please choose one

 Which of the following determines a country's rate of growth?

       ► The average propensity to save.

       ► The interaction of supply and demand.

       ► The law of comparative costs.

       ► The rate of capital accumulation.

   

Question No: 46    ( Marks: 1 )    - Please choose one

 Permanent growth rate depends on the saving rate and technological progress in which of the following models?

       ► Endogenous growth model.

       ► Exogenous growth model.

       ► Rostow's growth model.

       ► None of the given options.

   

Question No: 47    ( Marks: 1 )    - Please choose one

 Which of the following is a largest component of M1?

       ► Checking deposits.

       ► Credit card balances.

       ► Debit card balances.

       ► Savings deposits.

   

Question No: 48    ( Marks: 1 )    - Please choose one

 In which of the following conditions, a current account deficit exists?

       ► When net exports are positive.

       ► When financial flows out of a country for goods and services are less than financial flows into the country for its goods and services.

       ► When a country has a trade deficit.

       ► When an economy buys less from foreigners than it sells to them.

   

Question No: 49    ( Marks: 1 )    - Please choose one

 What is TRUE about economic growth in general?

       ► Economic growth has a greater impact on people's welfare in high income countries than in low income countries.

       ► In low income countries, economic growth makes rich people richer and poor people poorer.

       ► Economic growth makes most people, including most poor people, better off.

       ► Economic growth worsens income inequality in the short-run but is successful in the long run.

   

Question No: 50    ( Marks: 1 )    - Please choose one

 Suppose the price of rail tickets decreases, what will happen to the demand for airline travel?

       ► The demand curve for airline travel shifts left.

       ► The demand curve for airline travel shifts right.

       ► The supply curve of airline travel shifts left.

       ► The supply curve of airline travel shifts right.

   

Question No: 51    ( Marks: 1 )    - Please choose one

 What will happen if there is an increase in the raw material costs, other things remaining the same?

       ► The supply curve will shift to the left.

       ► The supply curve will shift to the right.

       ► Output will increase regardless of the market price and the supply curve will shift upward.

       ► Output will decrease and the market price will also decrease.

   

Question No: 52    ( Marks: 1 )    - Please choose one

 What will be the impact of a ban on foreign firms from selling in the domestic market?

       ► It will cause domestic producers competing with the imports to face huge losses.    

       ► It will cause the supply curve to shift to the left.

       ► It will cause the supply curve to shift to the right.

       ► It will have no effect on the domestic market.

   

Question No: 53    ( Marks: 1 )    - Please choose one

 Suppose there are two goods A and B. What will happen to the budget line if prices of both goods increase by the same percentage?

       ► It will shift parallel to the left.

       ► It will shift parallel to the right.

       ► It will pivot about the x axis.

       ► It will pivot about the y axis.

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