1 - If a small country imposes a tariff on an imported good, its terms of trade will ?
1 - If a small country imposes a tariff on an imported good, its terms of trade will ?
not change
2 - A tariff of ________ would be prohibitive causing imports to fall to zero?
2 - A tariff of ________ would be prohibitive causing imports to fall to zero?
15
3 - The deadweight cost of the tariff equals ?
3 - The deadweight cost of the tariff equals ?
50000
4 - With the tariff, the quantity of imports falls to ?
4 - With the tariff, the quantity of imports falls to ?
20,000 units
5 - With free trade the total quantity of imports would equal ?
5 - With free trade the total quantity of imports would equal ?
40,000 units
6 - In developed countries, tariffs on raw materials tend to be ?
6 - In developed countries, tariffs on raw materials tend to be ?
lower than on manufactured goods
7 - The difference between what consumers have to pay for a particular and what they are willing to pay is known as ?
7 - The difference between what consumers have to pay for a particular and what they are willing to pay is known as ?
consumer surplus
8 - _______ represents the difference between what consumer have to pay for a product and what they are willing and able to pay ?
8 - _______ represents the difference between what consumer have to pay for a product and what they are willing and able to pay ?
consumer surplus
9 - If a nation fitting the criteria for the small nation model imposes a 10 percent tariff on imports of autos ?
9 - If a nation fitting the criteria for the small nation model imposes a 10 percent tariff on imports of autos ?
The price of autos within the nation will rise by 10 percent
10 - A foreign-trade zone (FTZ) is ?
10 - A foreign-trade zone (FTZ) is ?
designed to promote exports by deferring imports duties on intermediate inputs and waving such duties if the final product is re-exported rather than sold domestically
11 - Most tariffs have ?
11 - Most tariffs have ?
Both protective and revenue effects
12 - Ad valorem tariffs are collected as ?
12 - Ad valorem tariffs are collected as ?
a percentage of the price of the product
13 - If we consider the impact on both consumers and producers, then protection of the steel industry is ?
13 - If we consider the impact on both consumers and producers, then protection of the steel industry is ?
Not in the interest of the U.S as a whole, but it might be in the interest of the state of Pennsylvania
14 - A tax of 20 rupees per unit of imported cheese would be an example of a (an) ?
14 - A tax of 20 rupees per unit of imported cheese would be an example of a (an) ?
Specific tariff
15 - Speculative bubbles may occur in the shares market ?
15 - Speculative bubbles may occur in the shares market ?
when stocks are fairly valued
16 - Which of the following reduces risk in a portfolio the greatest ?
16 - Which of the following reduces risk in a portfolio the greatest ?
Increasing the number of shares in the portfolio from 1 to 10
17 - The study of a company's accounting statements and future prospects to determine its value is known as ?
17 - The study of a company's accounting statements and future prospects to determine its value is known as ?
fundamental analysis
18 - Diversification of portfolio can ?
18 - Diversification of portfolio can ?
reduce idiosyncratic risk
19 - Which of the following is an example of moral hazard ?
19 - Which of the following is an example of moral hazard ?
After Gull buys fire insurance, he begins to smoke cigarettes in bed.
20 - If people are risk averse, then ?
20 - If people are risk averse, then ?
All of these answers are true
21 - An increase in the prevailing interest rate ?
21 - An increase in the prevailing interest rate ?
decreases the present value of future return from investment and decreases investment
22 - If a depositor puts Rs100 in a bank amount that earns 4 percent interest compounded annually, how much will be in the account after five years ?
22 - If a depositor puts Rs100 in a bank amount that earns 4 percent interest compounded annually, how much will be in the account after five years ?
Rs 121.67
23 - It is difficult for an actively managed investment fund to outperform an index fund because ?
23 - It is difficult for an actively managed investment fund to outperform an index fund because ?
actively managed funds trade more often and charge fees for their alleged expertise
24 - Share prices will follow a random walk if ?
24 - Share prices will follow a random walk if ?
markets reflect all available information in a rational way
25 - Which of the following should cause the price of a share of stock to rise ?
25 - Which of the following should cause the price of a share of stock to rise ?
All of these answers
26 - If the efficient markets hypothesis is true, then ?
26 - If the efficient markets hypothesis is true, then ?
the stock market is informationally efficient so share prices should follow a random walk
27 - Compared to a portfolio composed entirely of shares a portfolio that is 50 percent government bonds and 50 percent shares will have a ?
27 - Compared to a portfolio composed entirely of shares a portfolio that is 50 percent government bonds and 50 percent shares will have a ?
lower return and a lower level or risk
28 - Idiosyncratic risk is the ?
28 - Idiosyncratic risk is the ?
uncertainty associated with specific companies
29 - Which of the following does not help reduce the risk that people face ?
29 - Which of the following does not help reduce the risk that people face ?
increasing the rate of return within their portfolio
30 - If two countries start with the same real GDP/person and one country grows at 2 percent while the other grows at 4 percent ?
30 - If two countries start with the same real GDP/person and one country grows at 2 percent while the other grows at 4 percent ?
the standard of living in the country growing at 4 percent will start to accelerate away from the slower growing country due to compound growth
31 - JCB (Which makes agricultural and construction equipment) has the opportunity to purchase a new factory today that will provide them with a Rs50 million return four years from now If prevailing interest rates are 6 percent, what is the maximum that the pr
31 - JCB (Which makes agricultural and construction equipment) has the opportunity to purchase a new factory today that will provide them with a Rs50 million return four years from now If prevailing interest rates are 6 percent, what is the maximum that the pr
Rs 39,604,682
32 - The amount today that would be needed, at prevailing interest rates, to produce a particular sum in the future is known as ?
32 - The amount today that would be needed, at prevailing interest rates, to produce a particular sum in the future is known as ?
present value
33 - Which of the following statements about the burden of a tax is correct ?
33 - Which of the following statements about the burden of a tax is correct ?
The distribution of the burden of a tax is determined by the relative elasticities of determined by legislation.
34 - A tax placed on a good that is a necessity for consumers will likely generate a tax burden that ?
34 - A tax placed on a good that is a necessity for consumers will likely generate a tax burden that ?
falls more heavily on buyers.
35 - When a tax is collected from the buyers in a market, ?
35 - When a tax is collected from the buyers in a market, ?
the tax burden on the buyers and sellers in the same as an equivalent tax collected from the sellers
36 - Within the supply and demand model, a tax collected from the sellers of a good shift the ?
36 - Within the supply and demand model, a tax collected from the sellers of a good shift the ?
supply curve upward by the size of the tax per unit
37 - Which of the following workers would be most likely to find it more difficult to get a job after a rise in the minimum wage rate?
37 - Which of the following workers would be most likely to find it more difficult to get a job after a rise in the minimum wage rate?
a teenage worker with few qualifications.
38 - Which of the following is an example of price floor ?
38 - Which of the following is an example of price floor ?
the minimum wage
39 - Which side of the market is more likely to lobby government for a price floor ?
39 - Which side of the market is more likely to lobby government for a price floor ?
the sellers
40 - A price floor ?
40 - A price floor ?
sets a legal minimum on the price at which a good can be sold
41 - A binding price ceiling creates?
41 - A binding price ceiling creates?
a shortage
42 - For which of the following products would the burden of a tax likely fall more heavily on the sellers ?
42 - For which of the following products would the burden of a tax likely fall more heavily on the sellers ?
entertainment
43 - The burden of a tax falls more heavily on the buyers in a market when ?
43 - The burden of a tax falls more heavily on the buyers in a market when ?
demand is inelastic, and supply is elastic
44 - The burden of a tax falls more heavily on the sellers in a market when ?
44 - The burden of a tax falls more heavily on the sellers in a market when ?
demand is elastic, and supply is inelastic
45 - Which of the following takes place when a tax is placed a good ?
45 - Which of the following takes place when a tax is placed a good ?
an increase in the price buyers pay a decrease in the price sellers receive and a decrease in the quantity sold
46 - Within the supply and demand model, a tax collected from the buyers of a good shifts the ?
46 - Within the supply and demand model, a tax collected from the buyers of a good shifts the ?
demand curve downward by the size of the tax per unit
47 - Which of the following statements is true if the government places a price ceiling on petrol at Rs150 per litre and the equilibrium price is Rs100 per litre ?
47 - Which of the following statements is true if the government places a price ceiling on petrol at Rs150 per litre and the equilibrium price is Rs100 per litre ?
A significant increase in the demand for petrol could cause the price ceiling to become a binding constraint.
48 - The surplus caused by a binding price floor will be greatest if ?
48 - The surplus caused by a binding price floor will be greatest if ?
both supply and demand are elastic
49 - Which of the following statements about a binding price ceiling is true ?
49 - Which of the following statements about a binding price ceiling is true ?
The shortage created by the price ceiling is greater in the long run than in the short run
50 - Suppose the equilibrium price for apartments is Rs500 per month and the government imposes rent controls of Rs250 Which of the following is unlikely to to occur as a result of the rent controls?
50 - Suppose the equilibrium price for apartments is Rs500 per month and the government imposes rent controls of Rs250 Which of the following is unlikely to to occur as a result of the rent controls?
the quality of apartments will improve
51 - For a price ceiling to be binding constraint on the market the government must set it ?
51 - For a price ceiling to be binding constraint on the market the government must set it ?
below the equilibrium price
52 - The ratio of Urdu speaking population is ?
52 - The ratio of Urdu speaking population is ?
0.08
53 - Which is the most densely populated province of Pakistan ?
53 - Which is the most densely populated province of Pakistan ?
Punjab
54 - What was the crude birth rate of 1998 ?
54 - What was the crude birth rate of 1998 ?
30.5 per 1000
55 - The current growth rate of population in Pakistan is ?
55 - The current growth rate of population in Pakistan is ?
0.018
56 - What is the share of population over 60 years in the total population of Pakistan ?
56 - What is the share of population over 60 years in the total population of Pakistan ?
0.04
57 - What is the share of Sindh in the total population of Pakistan ?
57 - What is the share of Sindh in the total population of Pakistan ?
0.23
58 - What is the share of population under 15 in the total population ?
58 - What is the share of population under 15 in the total population ?
0.46
59 - What is the share of Baluchistan in the total population of Pakistan ?
59 - What is the share of Baluchistan in the total population of Pakistan ?
0.066
60 - What is the density of population in Pakistan according to census of 1998 ?
60 - What is the density of population in Pakistan according to census of 1998 ?
164 persons per square KM
61 - What is the share of rural population in the total population of Pakistan ?
61 - What is the share of rural population in the total population of Pakistan ?
0.675
62 - The major segment of "Saraiki" speaking population lives in ?
62 - The major segment of "Saraiki" speaking population lives in ?
Punjab
63 - The death rate of infant rate per thousand in Pakistan is ?
63 - The death rate of infant rate per thousand in Pakistan is ?
70 infant
64 - According to last census, the population growth rate in Pakistan was ?
64 - According to last census, the population growth rate in Pakistan was ?
0.0261
65 - The first census in Pakistan was held in ?
65 - The first census in Pakistan was held in ?
1951
66 - Census is held in Pakistan after every?
66 - Census is held in Pakistan after every?
Ten years
67 - What is the ratio of Punjabi speaking population ?
67 - What is the ratio of Punjabi speaking population ?
0.48
68 - What is the ratio of Agriculturist by profession in Pakistan in (mid 2007) ?
68 - What is the ratio of Agriculturist by profession in Pakistan in (mid 2007) ?
0.45
69 - In which sector the largest labour force is attached in Pakistan ?
69 - In which sector the largest labour force is attached in Pakistan ?
Agriculture
70 - The density of population per sq. Km in FATA is ?
70 - The density of population per sq. Km in FATA is ?
115
71 - The highest population density rate in Pakistan is in ?
71 - The highest population density rate in Pakistan is in ?
Islamabad
72 - The density of population in K.P.K is ?
72 - The density of population in K.P.K is ?
235 per sq. Km
73 - The density of population in Punjab is ?
73 - The density of population in Punjab is ?
353 per sq. Km
74 - Which is the second densely populated province of Pakistan ?
74 - Which is the second densely populated province of Pakistan ?
Sindh
75 - How much of the total potential labour force is unemployed ?
75 - How much of the total potential labour force is unemployed ?
2.42 million
76 - What was the crude death rate of 1998 ?
76 - What was the crude death rate of 1998 ?
8.6 per 1000
77 - What is the share of Pakistan population in the total population of world?
77 - What is the share of Pakistan population in the total population of world?
0.023
78 - What is the share of population between 15 to 60 years of age in total population ?
78 - What is the share of population between 15 to 60 years of age in total population ?
0.5
79 - In which part of Pakistan the rate of increasing population is fastest ?
79 - In which part of Pakistan the rate of increasing population is fastest ?
Islamabad
80 - What is the share of K.P.K in the total population of Pakistan ?
80 - What is the share of K.P.K in the total population of Pakistan ?
0.134
81 - What is the share of Punjab in the total population of Pakistan ?
81 - What is the share of Punjab in the total population of Pakistan ?
0.555
82 - Throughout most of humankind's existence, population grew at a rate of ________ per year?
82 - Throughout most of humankind's existence, population grew at a rate of ________ per year?
2e-005
83 - A period of rapid population growth between a preindustrial stable population characterized by high birth and death rates and a later modern, stable population marked by low fertility and mortality is known as ?
83 - A period of rapid population growth between a preindustrial stable population characterized by high birth and death rates and a later modern, stable population marked by low fertility and mortality is known as ?
demographic transition
84 - In contestable markets large oligopolistic firms end up behaving like ?
84 - In contestable markets large oligopolistic firms end up behaving like ?
monopolistically competitive firms
85 - A market is defined as perfectly contestable if ?
85 - A market is defined as perfectly contestable if ?
entry to it and exit from it are both costless
86 - The kinked demand curve model of oligopoly assumes the elasticity of demand ?
86 - The kinked demand curve model of oligopoly assumes the elasticity of demand ?
in response to a price increases is more elastic than the elasticity of demand in response to a price decrease
87 - In which of the following circumstances would a cartel be most likely to work ?
87 - In which of the following circumstances would a cartel be most likely to work ?
The market for copper, where there are very few producers and the product is standardized.
88 - A price- and quantity-fixing agreement is known as?
88 - A price- and quantity-fixing agreement is known as?
collusion
89 - An industry that has a relatively small number of firms that dominate the market is called ?
89 - An industry that has a relatively small number of firms that dominate the market is called ?
a concentrated industry
90 - A form of industry structure characterized by a few firms, each large enough to influence market price is ?
90 - A form of industry structure characterized by a few firms, each large enough to influence market price is ?
oligopoly
91 - Which of the following statements best describes the outcome under monopolistic competition ?
91 - Which of the following statements best describes the outcome under monopolistic competition ?
It is not efficient because too little output is produced and the output that is produced is produced at a cost above minimum average total cost
92 - A firm in a monopolistically competitive industry ?
92 - A firm in a monopolistically competitive industry ?
must lower price to sell more output.
93 - In monopolistic competition firms achieve some degree of market power ?
93 - In monopolistic competition firms achieve some degree of market power ?
by producing differentiated products
94 - In contestable markets, large oligopolistic firms, end up behaving like ?
94 - In contestable markets, large oligopolistic firms, end up behaving like ?
monopolistically competitive firms.
95 - Form society's point of view, society would be better off if a monopolist ?
95 - Form society's point of view, society would be better off if a monopolist ?
produced more and charged a lower price
96 - Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? the monopolist has?
96 - Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? the monopolist has?
equated marginal revenue and marginal cost
97 - The slope of marginal revenue curve is ?
97 - The slope of marginal revenue curve is ?
twice as steep as the demand curve
98 - Economic profits are ?
98 - Economic profits are ?
anything greater than the normal opportunity cost of investing
99 - A normal rate of profit ?
99 - A normal rate of profit ?
is the rate that is just sufficient to keep owners or investors satisfied.
100 - If firms can neither enter nor leaves an industry, the relevant time period is the ?
100 - If firms can neither enter nor leaves an industry, the relevant time period is the ?
short run
101 - The cosmetics industry is not considered by economists to be a good example of perfect competition because ?
101 - The cosmetics industry is not considered by economists to be a good example of perfect competition because ?
firms spend a large amount of money on advertising
102 - If a firm has some degree of market power, then output price ?
102 - If a firm has some degree of market power, then output price ?
becomes a decision variable for the firm
103 - Market power is ?
103 - Market power is ?
a firm's ability to raise price without losing all demand for its product
104 - A firm will shut down in the short run if ?
104 - A firm will shut down in the short run if ?
variable costs exceed revenues
105 - A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm's economic profit is ?
105 - A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm's economic profit is ?
£35
106 - The formula for average variable cost (AVC) is ?
106 - The formula for average variable cost (AVC) is ?
TVC/q
107 - A graph showing all the combinations capital and labor available for a given total cost is the ?
107 - A graph showing all the combinations capital and labor available for a given total cost is the ?
isocost line.
108 - A graph showing all the combinations of capital and labor that can used to produce a given amount of output is ?
108 - A graph showing all the combinations of capital and labor that can used to produce a given amount of output is ?
an isoquant.
109 - Suppose Handel's Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be ?
109 - Suppose Handel's Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be ?
U-shaped
110 - If the total product of two workers is 80 and the total product of 3 workers is 90 then the average product of the third worker is ________ and the marginal product of the third worker is _________?
110 - If the total product of two workers is 80 and the total product of 3 workers is 90 then the average product of the third worker is ________ and the marginal product of the third worker is _________?
30; 10
111 - Diminishing marginal return implies ?
111 - Diminishing marginal return implies ?
increasing marginal costs.
112 - The costs that depend on output in the short run are ?
112 - The costs that depend on output in the short run are ?
both total variable costs and total costs.
113 - Which statement is False ?
113 - Which statement is False ?
Fixed costs are zero if the firms is producing nothing.
114 - Which of the following statements is False ?
114 - Which of the following statements is False ?
For a market to be contestable, the product must be produced with a labor-intensive technology
115 - A major weakness of the kinked demand curve model of oligopoly is that ?
115 - A major weakness of the kinked demand curve model of oligopoly is that ?
it fails to explain how a firm arrived at its price and output decision initially
116 - An oligopoly with a dominant price leader will produce a level of output ?
116 - An oligopoly with a dominant price leader will produce a level of output ?
between that which would prevail under competition and that which a monopolist would choose in the same industry
117 - A group of firms that gets together to make price and output decisions is called ?
117 - A group of firms that gets together to make price and output decisions is called ?
a cartel
118 - Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will _________ and the total output produced will
118 - Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will _________ and the total output produced will
decrease; increase
119 - When one firm in the breakfast cereal market started an advertising campaign that stressed the nutritional value of its cereals, all other cereal manufacturers started similar advertising campaign This suggests that the breakfast cereal market is ?
119 - When one firm in the breakfast cereal market started an advertising campaign that stressed the nutritional value of its cereals, all other cereal manufacturers started similar advertising campaign This suggests that the breakfast cereal market is ?
oligopolistic
120 - Which of the following statements best describes the outcome under monopolistic competition ?
120 - Which of the following statements best describes the outcome under monopolistic competition ?
In monopolistic competition there are too few firms and each firm produce a slightly different product at scale that is greater than optimal
121 - The long-run equilibrium outcomes in monopolistic competition and perfect competition are similar because in both market structures ?
121 - The long-run equilibrium outcomes in monopolistic competition and perfect competition are similar because in both market structures ?
firms will only earn a normal profit
122 - A monopolistically competitive firm that is incurring a loss will produce as long as the price that the firm charges is sufficient to cover ?
122 - A monopolistically competitive firm that is incurring a loss will produce as long as the price that the firm charges is sufficient to cover ?
variable costs
123 - Monopolistic competition differs from perfect competition primarily because ?
123 - Monopolistic competition differs from perfect competition primarily because ?
in monopolistic competition, firms can differentiate their products
124 - A market is defined as perfectly contestable if ?
124 - A market is defined as perfectly contestable if ?
entry to it and exit from it are both costless
125 - An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called ?
125 - An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called ?
a natural monopoly
126 - In a monopoly, marginal revenue is ?
126 - In a monopoly, marginal revenue is ?
lower than price for all units other than the first
127 - The normal rate of profit for relatively risk-free firms will be _________ the interest rate on risk-free government bonds?
127 - The normal rate of profit for relatively risk-free firms will be _________ the interest rate on risk-free government bonds?
approximately equal to
128 - If the ABC Typing Service is earning a rate of return greater than the return necessary for the business to continue operations, then ?
128 - If the ABC Typing Service is earning a rate of return greater than the return necessary for the business to continue operations, then ?
the firm is earning are economic profit
129 - In the long run ?
129 - In the long run ?
there are no fixed factors of production
130 - The short run, as economists use the phrase, is characterized by ?
130 - The short run, as economists use the phrase, is characterized by ?
at least one fixed factor of production and firms neither leaving nor entering the industry
131 - Relative to a competitively organized industry a monopoly ?
131 - Relative to a competitively organized industry a monopoly ?
Produces less output, charges higher prices and earns economic profits.
132 - When ________ substitutes exist, a monopolist has ________ power to raise price?
132 - When ________ substitutes exist, a monopolist has ________ power to raise price?
more; less
133 - If you were running a firm in a perfectly competitive industry, you would be spending your time making decisions on ?
133 - If you were running a firm in a perfectly competitive industry, you would be spending your time making decisions on ?
how much of each input to use?
134 - Maximum profit can be shown on a diagram using ?
134 - Maximum profit can be shown on a diagram using ?
the AC and AR curves
135 - Marginal revenue is ?
135 - Marginal revenue is ?
the added revenue that a firm takes in when it increases output by one additional unit.
136 - The formula for average fixed costs is ?
136 - The formula for average fixed costs is ?
TFC/q
137 - The rate at which a firm can substitute capital for labour and hold output constant is the ?
137 - The rate at which a firm can substitute capital for labour and hold output constant is the ?
marginal rate of factor substitution
138 - Most empirical studies show that firm's cost curves ?
138 - Most empirical studies show that firm's cost curves ?
slope down to the right and then level off.
139 - Engineers for the All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases?
139 - Engineers for the All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases?
average costs to remain constant
140 - Which of the following is a correct statement about the relationship between average product (AP) and marginal product (MP) ?
140 - Which of the following is a correct statement about the relationship between average product (AP) and marginal product (MP) ?
If AP exceeds MP then AP is falling
141 - The short run, as economists use the phrase, in characterized by ?
141 - The short run, as economists use the phrase, in characterized by ?
at least one fixed factor of production and firms neither leaving nor entering the industry.
142 - Which of the following is most likely to be a variable cost for a firm ?
142 - Which of the following is most likely to be a variable cost for a firm ?
The payroll taxes that are paid on employee wages.
143 - Profit-maximizing firms want to maximize the difference between ?
143 - Profit-maximizing firms want to maximize the difference between ?
total revenue and total cost
144 - A reduction in interest rates, causes an increases in the monetary base that results in an _________ in the availability of consumer credit and a ________ in the cost of consumer credit?
144 - A reduction in interest rates, causes an increases in the monetary base that results in an _________ in the availability of consumer credit and a ________ in the cost of consumer credit?
increase, reduction
145 - Central banks prefer to fix the ____ and accept the resulting _____?
145 - Central banks prefer to fix the ____ and accept the resulting _____?
interest rate equilibrium money supply
146 - If the central bank buys financial securities in the open market to increase the monetary base, this is and example of ?
146 - If the central bank buys financial securities in the open market to increase the monetary base, this is and example of ?
Open Market operations
147 - M4 is a __________ measure of money and includes deposits at both __________ and _________?
147 - M4 is a __________ measure of money and includes deposits at both __________ and _________?
Wide, banks building societies
148 - When interest rate rise, other things equal, we can expect the quantity of real money holding to ?
148 - When interest rate rise, other things equal, we can expect the quantity of real money holding to ?
fall
149 - If the keep some money available in case I see a bargain this is an example of ?
149 - If the keep some money available in case I see a bargain this is an example of ?
precautionary demand for money
150 - If banks and the private sector decide to hold less cash the money multiplier will be ?
150 - If banks and the private sector decide to hold less cash the money multiplier will be ?
Larger
151 - Banks create money by ?
151 - Banks create money by ?
lending out part of their deposits
152 - Money has 3 main function they are __________ and __________?
152 - Money has 3 main function they are __________ and __________?
Medium of exchange unit of account store of value
153 - Each point on the LM curve represents the equilibrium point in the ?
153 - Each point on the LM curve represents the equilibrium point in the ?
money market for different combinations of interest rates and output
154 - The curve that illustrates the positive relationship between the equilibrium values of aggregate output and the interest rate in the money market is the ?
154 - The curve that illustrates the positive relationship between the equilibrium values of aggregate output and the interest rate in the money market is the ?
LM curve
155 - Each point on the IS curve represents the equilibrium point in the ?
155 - Each point on the IS curve represents the equilibrium point in the ?
goods market for the given interest rate
156 - The way in which government spending is supposed to reduce investment is by increasing ?
156 - The way in which government spending is supposed to reduce investment is by increasing ?
interest rates
157 - The idea the government spending causes a reduction in private investment is called ?
157 - The idea the government spending causes a reduction in private investment is called ?
crowding-out
158 - If The Central bank tries to keep the interest rate constant when the economy is operating on the steep part of the AS curve, _________ will occur?
158 - If The Central bank tries to keep the interest rate constant when the economy is operating on the steep part of the AS curve, _________ will occur?
a hyperinflation
159 - If the investment demand curve is vertical ?
159 - If the investment demand curve is vertical ?
monetary policy is ineffective but fiscal policy is effective
160 - An example of an expansionary monetary policy is ?
160 - An example of an expansionary monetary policy is ?
the Central bank buying government securities in the open market
161 - The interest rate is determined in ?
161 - The interest rate is determined in ?
the money markets
162 - The equilibrium level of aggregate output is determined in ?
162 - The equilibrium level of aggregate output is determined in ?
the goods market
163 - The demand for money represents the idea that there is ?
163 - The demand for money represents the idea that there is ?
a negative relationship between the interest rate and the quantity of money demanded
164 - The motive for holding money that encourages investors to hold bonds when interest rates are low, with the hope of selling them when interest rates are high, is the ?
164 - The motive for holding money that encourages investors to hold bonds when interest rates are low, with the hope of selling them when interest rates are high, is the ?
speculation motive
165 - Which of the following events will lead to a decrease in the equilibrium interest rate ?
165 - Which of the following events will lead to a decrease in the equilibrium interest rate ?
A decrease in the price level
166 - When economies speak of the demand for money which of the following are they asking ?
166 - When economies speak of the demand for money which of the following are they asking ?
What proportion of your financial assets do you want to hold in non-interest-bearing forms
167 - Assume that commercial banks are holding excess reserves because business firms and consumers are not willing to borrow money A decrease in the discount rate is likely to ?
167 - Assume that commercial banks are holding excess reserves because business firms and consumers are not willing to borrow money A decrease in the discount rate is likely to ?
Not change the money supply because banks already have excess reserves they cannot lend
168 - As the required reserve ratio is decreased the money multiplier ?
168 - As the required reserve ratio is decreased the money multiplier ?
increases
169 - Which of the following activities is one of the responsibilities of the Bank of England to the banking system ?
169 - Which of the following activities is one of the responsibilities of the Bank of England to the banking system ?
Assisting Banks that are in a difficult financial position
170 - Which of the following is included in broad money, but not included in narrow money ?
170 - Which of the following is included in broad money, but not included in narrow money ?
savings accounts
171 - An item designated as money that is intrinsically worthless is ?
171 - An item designated as money that is intrinsically worthless is ?
fiat money
172 - Government Securities with terms of more than one year are called ?
172 - Government Securities with terms of more than one year are called ?
government bonds
173 - If there is a general shortage of liquidity in the money market then ?
173 - If there is a general shortage of liquidity in the money market then ?
The short-term interest rate at which the economy's commercial banks lend to and borrow from each other will rise and the central bank may be expected to increase the supply of liquidity to the banks.
174 - The three main tools of monetary policy are ?
174 - The three main tools of monetary policy are ?
Open-market operations reserve requirements and the refinancing rate
175 - Suppose the State Bank purchases a Rs 1,000 government bond from you. If you deposit the entire Rs 1,000 in you bank what is the total potential change in the money supply as a result of the State Bank's action if the your bank's reserve ratio is 20 perce
175 - Suppose the State Bank purchases a Rs 1,000 government bond from you. If you deposit the entire Rs 1,000 in you bank what is the total potential change in the money supply as a result of the State Bank's action if the your bank's reserve ratio is 20 perce
Rs 5,000
176 - Which of the following policy actions by a central bank is likely to increase the money supply ?
176 - Which of the following policy actions by a central bank is likely to increase the money supply ?
Buying government bonds in open market operations
177 - Bance Solida has, in the past, always operated with a reserve ratio of 25 percent. It has now been taken over by Gung-Ho Bank Which operates with a reserve ration of 12½ percent, Assuming that Banca Solida adopts the business practices of its new owner, W
177 - Bance Solida has, in the past, always operated with a reserve ratio of 25 percent. It has now been taken over by Gung-Ho Bank Which operates with a reserve ration of 12½ percent, Assuming that Banca Solida adopts the business practices of its new owner, W
Money supply will increase because Banca Solida will increase its loans
178 - Commodity money ?
178 - Commodity money ?
has intrinsic value
179 - Which of the following is not a function of money ?
179 - Which of the following is not a function of money ?
hedge against inflation
180 - A fall in investment demand can result from ?
180 - A fall in investment demand can result from ?
All of the above
181 - One of the transmission mechanisms of monetary policy is through consumer demand when interest rates ________ household wealth ________ and consumption _________?
181 - One of the transmission mechanisms of monetary policy is through consumer demand when interest rates ________ household wealth ________ and consumption _________?
rise, falls, falls
182 - Equilibrium in the Money market will change if there is ?
182 - Equilibrium in the Money market will change if there is ?
any of the above
183 - The monetary base is ________ and _________?
183 - The monetary base is ________ and _________?
Currency in circulation, banks cash reserves
184 - When real income increases other things equal we can expect the demand for real money holdings to ?
184 - When real income increases other things equal we can expect the demand for real money holdings to ?
increase
185 - Three variables affect the demand for money they are _______ and __________?
185 - Three variables affect the demand for money they are _______ and __________?
the price level interest rates real income
186 - The money supply is ?
186 - The money supply is ?
Currency in circulation plus bank deposits
187 - The primary function of bank is to ?
187 - The primary function of bank is to ?
Make a profit
188 - Keynesians and monetarists differ over how steep the IS and LM curves actually are Monetarists claim that the IS curve must be __________ and the LM curve must be __________?
188 - Keynesians and monetarists differ over how steep the IS and LM curves actually are Monetarists claim that the IS curve must be __________ and the LM curve must be __________?
flat; steep
189 - When the money supply increase ?
189 - When the money supply increase ?
The LM curve shift to the right
190 - The curve that illustrates the negative relationship between the equilibrium values of aggregate output and the interest rate in the goods market is the ?
190 - The curve that illustrates the negative relationship between the equilibrium values of aggregate output and the interest rate in the goods market is the ?
LM curve
191 - If planned investment becomes more sensitive to interest rate changes the crowding out effect will ?
191 - If planned investment becomes more sensitive to interest rate changes the crowding out effect will ?
be increased
192 - If the central bank increases the money supply at the same time as the government increasing spending, it is suggested that investment will ?
192 - If the central bank increases the money supply at the same time as the government increasing spending, it is suggested that investment will ?
not be reduced as much as it would have been
193 - According to the simple Keynesian view the aggregate supply curve is ?
193 - According to the simple Keynesian view the aggregate supply curve is ?
horizontal until it reaches full capacity and then becomes vertical
194 - For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to ?
194 - For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to ?
increase the money supply
195 - The interest rate ?
195 - The interest rate ?
is determined in the money market and influences the level of planned investment and thus the goods market
196 - An increase in the money supply aimed at increasing aggregate output is referred to as ?
196 - An increase in the money supply aimed at increasing aggregate output is referred to as ?
expansionary monetary policy
197 - The chain of events that results from an expansionary monetary policy is ?
197 - The chain of events that results from an expansionary monetary policy is ?
money supply increases the interest rate decrease planned investment increases aggregate output increases and money demand increase
198 - In terms of the demand for money the interest rate represents ?
198 - In terms of the demand for money the interest rate represents ?
The opportunity cost of holding money
199 - The opportunity cost of holding money is determined by ?
199 - The opportunity cost of holding money is determined by ?
the interest rates
200 - The main reason that people hold money to buy things is referred to as the ?
200 - The main reason that people hold money to buy things is referred to as the ?
Transactions motive
201 - Which of the following events will lead to an increase in the demand for money ?
201 - Which of the following events will lead to an increase in the demand for money ?
An increase in the level of aggregate output
202 - If the quantity of money demanded exceeds the quantity of money supplied then the interest rate will ?
202 - If the quantity of money demanded exceeds the quantity of money supplied then the interest rate will ?
rise
203 - A bank has excess reserves to lend but is unable to find anyone to borrow the money This will _________ the size of the money multiplier?
203 - A bank has excess reserves to lend but is unable to find anyone to borrow the money This will _________ the size of the money multiplier?
reduce
204 - The difference between a bank's actual reserves and its required reserves is its?
204 - The difference between a bank's actual reserves and its required reserves is its?
excess reserves
205 - A checking deposit in a bank in considered _________ of that bank?
205 - A checking deposit in a bank in considered _________ of that bank?
a liability
206 - Money that a government has required has required to be accepted in settlement of debts is ?
206 - Money that a government has required has required to be accepted in settlement of debts is ?
legal tender
207 - Which one of the following is not true ?
207 - Which one of the following is not true ?
Commercial banks may borrow from and lend to each other and the interest rate at which they do this is called the refinancing rate
208 - Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the money supply will ?
208 - Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the money supply will ?
rise by an amount that depends on the bank's reserve ratio
209 - Suppose all banks maintain a 100 percent reserve ratio. If an individual deposits Rs 1,000 of currency in a bank ?
209 - Suppose all banks maintain a 100 percent reserve ratio. If an individual deposits Rs 1,000 of currency in a bank ?
The money supply is unaffected
210 - The refinancing rate is ?
210 - The refinancing rate is ?
The interest rates the European Central Bank charges on loans to banks
211 - Reserve requirements that may be imposed on an economy's banks by its central bank specify that banks by its central bank specify that banks reserve must be a minimum percentage of them ?
211 - Reserve requirements that may be imposed on an economy's banks by its central bank specify that banks by its central bank specify that banks reserve must be a minimum percentage of them ?
deposits
212 - If the banks in an economy operate with a reserve ratio of 20 percent then the money multiplier is ?
212 - If the banks in an economy operate with a reserve ratio of 20 percent then the money multiplier is ?
5
213 - Which of the following statements about money is not true ?
213 - Which of the following statements about money is not true ?
All the wealth that people hold, in whatever form, should be considered as money
214 - An example of fiat money is ?
214 - An example of fiat money is ?
Paper euros
215 - Money is ?
215 - Money is ?
Anything that is generally accepted as a medium of exchange
216 - The study of human population in terms of size, density, location age gender, race occupation and other statistics is called ?
216 - The study of human population in terms of size, density, location age gender, race occupation and other statistics is called ?
Demography
217 - One of the most promising developments in multivariable segmentation is called ____ where a host of demographic and socioeconomic factors are used ?
217 - One of the most promising developments in multivariable segmentation is called ____ where a host of demographic and socioeconomic factors are used ?
geodemographic segmentation
218 - Regulations that arise to ensure that firms take responsibility for the social costs of their products or production processes stem from which reason for government legislation of business ?
218 - Regulations that arise to ensure that firms take responsibility for the social costs of their products or production processes stem from which reason for government legislation of business ?
To protect the interests of society
219 - The first modern environmental movement in the United States began in the ?
219 - The first modern environmental movement in the United States began in the ?
1960s and 1970s
220 - All of the following are thought to be sources of new product ideas EXCEPT ?
220 - All of the following are thought to be sources of new product ideas EXCEPT ?
the local library
221 - In 1985, the Coca-cola Company made a classic marketing blunder with its deletion of its popular Coca-Cola product and introduction of what it called New Coke Analysts now believe that most of the company's problems resulted from poor marketing research.
221 - In 1985, the Coca-cola Company made a classic marketing blunder with its deletion of its popular Coca-Cola product and introduction of what it called New Coke Analysts now believe that most of the company's problems resulted from poor marketing research.
They defined their marketing research problem too narrowly
222 - Each salesperson is assigned to an exclusive area in which to sell the company's full line of products or services in which type of salesforce structure ?
222 - Each salesperson is assigned to an exclusive area in which to sell the company's full line of products or services in which type of salesforce structure ?
Territorial sales force
223 - If Honda uses its company name to cover such different products as its automobile's lawn mowers and motorcycles, it is practicing which of the following strategies ?
223 - If Honda uses its company name to cover such different products as its automobile's lawn mowers and motorcycles, it is practicing which of the following strategies ?
brand extension strategy
224 - If a company (considering its options on the product/market expansion grid) chooses to move into different unrelated fields (from what it ha ever done before) with new products as a means to stimulate growth the company would be following which of the fol
224 - If a company (considering its options on the product/market expansion grid) chooses to move into different unrelated fields (from what it ha ever done before) with new products as a means to stimulate growth the company would be following which of the fol
diversification
225 - The goal of the marketing logistics system should be to provide ?
225 - The goal of the marketing logistics system should be to provide ?
A targeted level of customer service at the least cost
226 - The ______ holds that consumers will favor products that are available and highly affordable (therefore, work on improving production and distribution efficiency) ?
226 - The ______ holds that consumers will favor products that are available and highly affordable (therefore, work on improving production and distribution efficiency) ?
production concept
227 - ________ is screening new product ideas in order to spot good ideas and drop poor ones as soon as possible?
227 - ________ is screening new product ideas in order to spot good ideas and drop poor ones as soon as possible?
Idea screening
228 - The practice of going after a large share of a smaller market or subsets of a few markets is called ?
228 - The practice of going after a large share of a smaller market or subsets of a few markets is called ?
concentrated marketing
229 - The type of salesforce structure in which the sales force sells along product lines is called a ?
229 - The type of salesforce structure in which the sales force sells along product lines is called a ?
product salesforce
230 - Joining with foreign companies to produce or market products and services is called ?
230 - Joining with foreign companies to produce or market products and services is called ?
joint venturing
231 - A company is in the ________ stage of the new product development process when the company develops the product concept into a physical product in order to assure that the product idea can be turned into a workable product ?
231 - A company is in the ________ stage of the new product development process when the company develops the product concept into a physical product in order to assure that the product idea can be turned into a workable product ?
product development
232 - If Mark Mars pays Hershey Foods Corporation for the right to use their name on his line of T-shirts then Mr. Mars is using which type of branding ?
232 - If Mark Mars pays Hershey Foods Corporation for the right to use their name on his line of T-shirts then Mr. Mars is using which type of branding ?
Licensed brands
233 - All of the following factors can affect the attractiveness of a market segment EXCEPT ?
233 - All of the following factors can affect the attractiveness of a market segment EXCEPT ?
the likelihood of government monitoring
234 - If a government uses barriers to foreign products such as biases against a foreign company's bids or product standards that go against a foreign company's product features the government is using ?
234 - If a government uses barriers to foreign products such as biases against a foreign company's bids or product standards that go against a foreign company's product features the government is using ?
nontariff trade barriers
235 - If an advertiser wants flexibility timeliness good local market coverage broad acceptability, and high believability the advertiser will probably choose which of the following mass media types ?
235 - If an advertiser wants flexibility timeliness good local market coverage broad acceptability, and high believability the advertiser will probably choose which of the following mass media types ?
Newspapers
236 - __________ has the advantage of being high in selectivity low cost; immediacy; and interactive capabilities?
236 - __________ has the advantage of being high in selectivity low cost; immediacy; and interactive capabilities?
Online
237 - One common misuse of marketing research findings in contemporary business is the tendency for marketing research tp ?
237 - One common misuse of marketing research findings in contemporary business is the tendency for marketing research tp ?
become a vehicle for pitching the sponsor's products
238 - The place in the business buying behavior model where interpersonal and individual influences might interact is called the ?
238 - The place in the business buying behavior model where interpersonal and individual influences might interact is called the ?
buying center
239 - The type of trade promotion discount in which manufacturers agree to reduce the price to the retailer in exchange for the retailer's agreement to feature the manufacturer's products is some way is called a(n) ?
239 - The type of trade promotion discount in which manufacturers agree to reduce the price to the retailer in exchange for the retailer's agreement to feature the manufacturer's products is some way is called a(n) ?
allowance
240 - If your company were to make a product such as a suit of clothes and sold that product to a retailer your company would have sold to the __________ merket?
240 - If your company were to make a product such as a suit of clothes and sold that product to a retailer your company would have sold to the __________ merket?
reseller
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