Provision of short-term loans to solve balance of payments problems is done by the
- A. International Finance Corporation
- B. International Monetary Fund
- C. Iternational Bank for Reconstruction and Development
- D. African Development Bank
Which of the following is not a reason countries import goods?
- A. Differences in natural endowments
- B. the law of absolute advantage
- C. Differences in tastes
- D. The love for other nations
Which of the following types of unemployment results from changes in the pattern of aggregate demand ?
- A. Technological unemploment
- B. Stuctural unemployment
- C. Frictional unemployment
- D. Seasonal unemployment
Economic development may be hindered if there is
- A. a high pool of skilled labour
- B. a high rate of economic growth
- C. political stability
- D. rapid population growth
An increase in the price of a commodity from $10 to $ 15 leads to an increase in the quantity supplied from 10 units to 15 units. The price elasticity of supply is
- A. 0.
- B. 0.5.
- C. 1.
- D. 5.
Perfect knowledge of events in a perfect market will be made possible by the existence of
- A. many buyers and sellers
- B. homogeneous products
- C. means of communication
- D. large number of traders
Which of the following best defines inflation?
- A. Cyclical increase in prices
- B. Periodic increase in prices
- C. Persistent increase in prices
- D. Occasional increase in prices
Cyclical unemployment is one associated with
- A. inadequate information
- B. trade fluctuations
- C. structural changes
- D. seasonal changes
Which of the following will increase the nominal value of national income?
- A. High rate of inflation
- B. increase in the value of money
- C. Increase in import
- D. High rate of subsistence production
Due to an increase in price, a seller increases the quantity offered for sale from 400 units to 450units. What is the percentage change in quantity supplied?
- A. 1 %
- B. 7.5%
- C. 12.5%
- D. 20%
Money will serve as a standard of deferred payment if it is
- A. homogeneous
- B. durable
- C. easily recognized
- D. stable in value
Co-operative societies formed to market the output of their members are called
- A. Consumers' co-operative societies
- B. marketing co-operative societies
- C. Credit and thrift co-operative societies
- D. Producers' co-operative societies
The long – run average cost curve is made up of several short-run
- A. marginal and average cost curves
- B. average cost curves
- C. average variable cost curves
- D. average variable and total cost curves
Increase in supply due to changes in plant size will take place only in the
- A. normal time
- B. long run
- C. market period
- D. short run
The supply of tea is linearly presented as p = 0 . 2Q, where P is the price and Q is the quantity. What is P when Q = 25?
- A. $ 0.08
- B. $ 5.00
- C. $ 25.02
- D. $ 125
The rate of increase in utility is
- A. average utility
- B. increasing utility
- C. total utility
- D. marginal utility
The profit of a producer is the difference between
- A. total cost and marginal cost
- B. total revenue and total cost
- C. average cost and total cost
- D. price and total cost
If the coefficient of price elasticity of demand is 0.1, demand is
- A. elastic
- B. inelastic
- C. zero elastic
- D. unitary elastic
Goods consumed out of habit have
- A. elastic demand
- B. perfectly elastic demand
- C. inelastic demand
- D. unitary elastic demand
Which of the following is not a characteristic of a developing country? High
- A. real per capita income
- B. level of primary production
- C. population growth rate
- D. level of illiteracy
Examples of joint stock banks are
- A. commercial banks
- B. co-operative credit societies
- C. central banks
- D. development banks