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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