which one of the following is not a factor of production as recognized by economists

A) Land

B)Labor

C)enterprise

D)capital

E)raw materials like basic metal

In the pure capitalistic economy, the main sector are_____sector and____

A.) public, government sector

B.) public, consumer sector

C.) business, household sector

D.) consumer, foreign trade sector

he economic system that gives all resources to the private individuals to answer the three basic questions is

called--

A) capitalistic economy

B) democracy

C) oligopoly

D) communism or socialism

Which of the following is not considered as a major market in classical economists world? Your answer is-

A) commodity or goods market

B) Money market or capital market

C) Labor market

D) Bond market

In billions of dollars the current GDP of US is -

- highest in the world and is roughly-

A) The, 9,000

B) Second, 12,000

C) Third, 500

D) The, 23,000

The statement, "The Government should subsidize farmers to ensure the long run supply of agricultural product"

is:

A) A statement that will lead to lower quantity supplied of agricultural products

B) A positive economic statement

C) A normative economic statement

D) A statement that will increase the demand for non-agricultural goods such as cars.

The statement, "The Government should subsidize farmers to ensure the long run supply of agricultural product"

is:

A) A statement that will lead to lower quantity supplied of agricultural products

B) A positive economic statement

C) A normative economic statement

D) A statement that will increase the demand for non-agricultural goods such as cars.

In the relationship described by law of demand, the price is-, and the slope of demand curve is measured by-

- because the tradition of drawing graphs is broken here.

A) a dependent variable, rise over run

B) independent variable, run over rise

C) undetermined, run over rise

D) constant, run over rise

Which one of the following is not one of the other things to be held constant for the law of demand to hold?

A) the tastes of consumers

B) expectations of producers for future prices

C) number of consumers

D) prices of related commodities

In Keynesian terminology, the MEC stands for Marginal Efficiency of Capital and it is explained as-

A) interest rate charged by the banks

B) rate of expected loss if your firm has a negative shock

C) rate of expected return from the use of the machine

D) rate of positive expectations about the corona virus vaccine

Consider the statement of the law of supply. Which one of the following is a way to explain the reason for validity

of the law of supply? Your answer is-

A) Profitability effect

B) Income effect

C) Consumers' substitution effect on consumption side, such as increase in price of Coke would make consumers consume more Pepsi.

D) Horizontal summation effect

With the increase in income of consumers, if consumption of one good increases and that of the other

decreases, then the goods are called (respectively). Your answers are

A) inferior good, normal good

B) normal good, inferior good

C) complementary good, inferior good

D) substitute good, complementary good

E) none of the above

Which one of the following is not a consequence of the price control policy?

A) High administrative cost

B) Tendency of illegal transactions

C) Either surplus or shortage created

D) Efficient functioning of the market

Which one of the following activities represents a non-market transaction?

A) Landscaping help to your mean neighbor who never paid

B) New car bought from a dealer at a discount of 20%

C) Laundry service at the laundry shop or at the hotel

D) Insurance service with monthly premiums

"A change in quantity supplied" is explained by .

A) change in one of the other things that have to be held constant

B) shift of the demand curve

C) shift of the supply curve

D) movement along the supply curve

Which one of the following does not describe the opportunity cost of taking this economics class? Your answer

is-

A) Wages lost by not working at this time

B) Have to listen to some non-fascinating jokes

C) The sleep lost by attending this class

D) Great use of this time for clarifying some economic concepts.

"A shift of the demand curve" is always created by

A) change in one of the other factors to be held constant

B) violation of ceteris paribus assumption

C) change in demand rather than change in quantity demanded

D) all of the above

E) none of the above

If market mechanism is allowed to work then the price of a product will reach to-. This is because at price

above equilibrium there is- and at the price below equilibrium there is-

A) equilibrium, surplus, shortage

B) equilibrium, shortage, surplus

C) above equilibrium, shortage, surplus

D) below equilibrium, surplus, shortage.

By definition, GDP does not include in it--

A) intermediate goods

B) non-market transactions

C) negative or bad side effects of higher productions

D) any of the above a, b, or c

The main reasons for the validity of the law of demand are

A) substitution effect on production side and profitability effect

B) income and substitution effect

C) income and profitability effect

D) production and consumption effects

E) none of the above

In classical economists explanation which one of the following is the market that completely failed to explain the

situation of Great Depression?

A) Commodity or goods market

B) Labor market

C) Money market

D) All of the above markets were in turmoil and were a proof that classical economists did not do a

satisfactory job.

In the real trough (lowest point) of Great Depression in the United States, the unemployment rate reached to--

percent, and in those depression years, GDP declined by----percent

A) 25%, 33%

B) 30%, 20%

C) 15%, 20%

D) 33%, 24%

Keynesian main argument is summarized as saying that the most important determinant of GDP is the

A) Labor productivity

B) Capital productivity

C) Ability of the economy to raise the level of total expenditure

D) Extent of the price flexibility

Which one of the following is not a well recognized price index?

A) Producer Price Index

B) GDP deflator

C) Consumer Price Index

D) Average Price level of imported and exported goods

Which one of the following is the interest rate that is charged by one financial institution for its loans to other

financial institutions?

A) Prime rate

B) Federal funds rate

C) Discount rate

D) Treasury bond rate

Commercial paper is a financial instrument issued by-

A) Federal Reserve system

B) Banks and Saving Institutions

C) Big corporations

D) Insurance companies

E) None of the above

In Keynesian terminology, if consumption function of the economy is represented as C = 400 + .75Y then the

autonomous consumption is- and the marginal propensity to consume 9mpc) is-

A) 500, -400

B) 400,.75

C) 300,.25

D) 400,.25

In the order of their importance and billions of dollars spent, the two largest expenditure items for the US

government are

A) Interest on the national debt and defense

B) Defense and education

C) Welfare payments and interest on the debt

D) Welfare payments and defense

E) None of the above are right answers

The main difference between M1 and M2 money supply measures is that M2 includes

A) Saving deposits of small denomination

B) Traveler's checks

C) Checking deposits

D) Coins and currency

If GDP goes up then Consumption (C) is expected to - and the linear relationship between Consumption is

called-

A) Go down, consumption line

B) Go up, consumption function

C) Stay the same, consumption determination

D) Go down, consumption function

Which one of the following are two main determinants of private domestic gross investment (I) in Keynesian

terminology? Your answer is-

A) marginal efficiency of capital (MEC) and exchange rate of the currency

B) Rate of GDP increase, interest rate charged by the banks

C) shortage of a product, saving rate

D) marginal efficiency of capital (MEC), interest rate (r) charged by the banks

Which of the following interest rate is the rate charged by Federal Reserve Banks for their loans to the financial

institutions?

A) Federal Funds rate

B) Prime rate

C) Discount rate

D) Treasury bond yield rate

Price ceilings are intended to help- but they usually end up creating-

A) Producers, surplus

B) Consumers, surplus

C) foreign traders, shortage

D) consumers, shortage

The process of a small change in investment (I) leading to a large change in GDP (Y) of an economy is called--

A) autonomous consumption

B) saving function

C) autonomous spending multiplier

D) money creation process

In modern times, money supply is backed up by-- percent stock of precious metal such as gold, and the

monetary system of old times that had metal coins circulating money that had same value for monetary and non-

monetary purposes, was called-

A) 5, commodity money

B) 0, full bodied commodity money

C) Very small such as 1, credit or fiat money

D) 3, commodity money

The policy prescription advocated by Keynes is summarized by sentence that argues that "a somewhat --of

investment is only means to the approximation of full employment"

A) Comprehensive socialization

B) Simple boost

C) Measurable reduction

D) Constant change

According to classical economists economy produces--level of GDP. According to Keynes economy produces-

-level of GDP.

A) Full employment, equilibrium

B) Equilibrium, full employment

C) Less than full employment, less than equilibrium

D) More than equilibrium, more than full employment

Which of the following organizations issues the special drawing rights (SDRS)?

A) World Bank

B) WTO (World Trade Organization)

C) IMF (International Monetary Fund)

D) Federal Reserve System

By the order of number of countries in the world, according to GDPs, India's ranking is roughly-, and by the

order of per capital income her rank is roughly-

A) 5, 120

B) 144, 12

C) 50,7

D) 29, 194

Keynesian economics can be seen as a--

-to the classical economists, who before Keynes believed markets are

A) Friendly support, inefficient

B) Friendly support, efficient

C) Revolt, efficient

D) Revolt, inefficient

Production Possibilities Frontier (PPF) has the shape of - and the demand for labor curve is

A) Convex to the origin, downward sloping from left to right

B) Concave to the origin, downward sloping from left to right

C) Concave to the origin, upward sloping from left to right

D) Straight line upward sloping, concave to the origin curve