Description : Devaluation usually causes the internal prices to : (1) fall (2) rise (3) remain unchanged (4) None of the above
Last Answer : (3) remain unchanged Explanation: Devaluation reduces the export price in term of foreign currencies in the world market. As a result the exports are increased so as to increase the revenue ... effects on a country's international trade by alluring traders. But, internal prices remain unaffected.
Description : 10. An increase in the money supply will cause interest rates to a. rise b. fall c. remain unchanged
Last Answer : b. fall
Description : A boat carrying a number of large stones is floating in a water tank. If the stones are unloaded into the water, the level of water in the tank (a) Will remain unchanged (b) Will rise (c) Will fall (d) Will rise till half the number of stones are unloaded and then will begin to fall
Last Answer : Ans:(c)
Description : Tea kept in a thermos flask is vigorously shaken. If the tea is considered as a system, then its temperature will (A) Increase (B) Decrease (C) Remain unchanged (D) First fall and then rise
Last Answer : (A) Increase
Description : When an alternator connected to the bus-bar is shut down the bus-bar voltage will (a) fall (b) rise (c) remain unchanged (d) none of the above
Last Answer : (c) remain unchanged
Description : Acording to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes - (1) a fall in prices of output and resources (2) a fall in real gross National product ... a rise in real gross National product and investment (4) a rise in prices of output and resources
Last Answer : (1) a fall in prices of output and resources Explanation: In 1936, John Maynard Keynes published the book "The General Theory of Employment, Interest and Money to explain the prolonged and ... at a below-full-employment equilibrium. Suppose that the economy is at the full-employment equilibrium.
Description : According to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes (1) a fall in prices of output and resources (2) a fall in real gross National product and ... rise in real gross National product and investment (4) a rise in prices of output and resources
Last Answer : a fall in prices of output and resources
Description : Devaluation of money means : (1) decrease in the internal value of money (2) decrease in the external value of money (3) decrease in both internal and external value of money (4) the government takes back currency notes of any denominations
Last Answer : (1) decrease in the internal value of money Explanation: Devaluation refers to a decline in the value of a currency in relation to another, usually brought about by the actions of a central bank ... with developing countries that don't allow their currency prices to float freely on the open market.
Last Answer : decrease in the external value of money
Description : According to the effective demand principle: a) at a certain price, the output shall not be determined by any known factor b) at a certain price, the output will remain unaffected by rise or ... certain price, equilibrium output will be solely determined by the aggregate demand d) none of the above
Last Answer : c) at a certain price, equilibrium output will be solely determined by the aggregate demand
Description : At constant temperature, the thermal conductivities of gases__________ with rise in pressure. (A) Decrease (B) Increase (C) Remain unchanged (D) May increase or decrease; depends on the pressure
Last Answer : (A) Decrease
Description : With an increase in size of tube, the rise or depression of liquid in the tube due to surface tension will (A) Decrease (B) Increase (C) Remain unchanged (D) Depend upon the characteristics of liquid
Last Answer : Answer: Option A
Description : The idea that irrespective of how a government chooses to increase spending, either by debt financing or tax financing, the outcome will be the same and demand will remain unchanged, is popularly ... b) Ricardian theory of competitive advantage c) Ricardian theory of stability d) None of the above
Last Answer : a) Ricardian theory of equivalence David Ricardo was a British political economist and his most famous theory was that of comparative advantage (along with above theory of Ricardian ... nation should use its resources solely in industries where it has the most international competitiveness
Description : If consumer’s income increases, the demand for normal product X (a) will remain unchanged (b)will necessarily increase © will necessarily decrease (d) may increase or decrease
Last Answer : (b)will necessarily increase
Description : Demand curve remaining the same, if the supply curve shifts to the right then (a) Price and quantity move in the same direction (b) Price and quantity move in the opposite direction © Price and quantity remain unchanged (d) None of the above.
Last Answer : (b) Price and quantity move in the opposite direction
Description : If generally interest rates in nation increase, a corporate bond with a fixed interest rate will usually A. increase in value B. remain unchanged C. decrease in value. D. be returned to corporation.
Last Answer : C. decrease in value.
Description : Crowding out means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a government ... spending to fall d. a government budget deficit raises American exports and lowers American imports
Last Answer : c. a government budget deficit raises interest rates and causes investment spending to fall
Description : 10. Crowding out means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a ... investment spending to fall d. a government budget deficit raises American exports and lowers American imports
Description : Which statement best describes the operating principle of a constant-speed propeller? a. As throttle setting is changed by the pilot, the prop governor causes pitch angle of the propeller blades to ... the pilot, the RPM of the engines remains constant as the pitch angle of the propeller changes
Last Answer : b. The propeller control regulates the engine RPM and in turn the propeller RPM
Description : The purpose of devaluation is to : (1) be little foreign currencies (2) encourage exports (3) discourage exports (4) encourage import
Last Answer : (2) encourage exports Explanation: Devaluation in modern monetary policy is a reduction in the value of a currency with respect to those goods, services or other monetary units with which that currency can be exchanged. It makes exports more competitive and imports more expensive.
Description : The major aim of devaluation is to - (1) encourage imports (2) encourage exports (3) encourage both exports and imports (4) discourage both exports and imports
Last Answer : (2) encourage exports Explanation: Devaluation in modern monetary policy is a reduction in the value of a currency with respect to those goods, services or other monetary units with which that currency can ... , discouraging imports. As a result, this may help to reduce a country's trade deficit.
Description : Devaluation makes import - (1) Competitive (2) Inelastic (3) Cheaper (4) Dearer
Last Answer : (4) Dearer Explanation: Devaluation makes import expensive and discourages it, while the export of a country that devalues becomes cheaper and thereby induces trade partners to import more goods from her. Nations that produce industrial goods on a large scale stand to benefit from devaluation.
Description : Devaluation of currency leads to - (1) expansion of export trade (2) contraction of import trade (3) expansion of import substitution (4) All of the above
Last Answer : (4) All of the above Explanation: Devaluation in modern monetary policy is a reduction in the value of a currency with respect to those goods, services or other monetary units with which ... deficit. Import substitution means promotion of export to replace imports. It is also fallout of devaluation.
Description : The outcome of 'devaluation of currency' is - (1) increased export and improvement in balance of payment (2) increased export and foreign reserve deficiency (3) increased import and improvement in balance of payment (4) increased export and import
Last Answer : (1) increased export and improvement in balance of payment Explanation: Devaluation is a reduction in the exchange value of a country's monetary unit in terms of gold, silver, or foreign ... home country's export sales and discourages expenditures on imports, thus improving its balance of payments.
Last Answer : encourage exports
Description : Devaluation of currency leads to (1) expansion of export trade (2) contraction of import trade (3) expansion of import substitution (4) All of the above
Last Answer : All of the above
Description : The outcome of ‘devaluation of currency’ is (1) increased export and improvement in balance of payment (2) increased export and foreign reserve deficiency (3) increased import and improvement in balance of payment (4) increased export and import
Last Answer : increased export and improvement in balance of payment
Description : Devaluation makes import (1) Competitive (2) Inelastic (3) Cheaper (4) Dearer
Last Answer : Dearer
Description : The major aim of devaluation is to : (1) encourage imports (2) encourage exports (3) encourage both exports and imports (4) discourage both exports and imports
Description : What does devaluation of a currency mean ? 1. decrease in the internal value of money 2. decrease in the external value of money 3. decrease both in the external and internal values of money 4. None of these 5. both 1 and 2
Description : )A very high rise in National Income at current market prices and a low rise at constant prices reveals - (1) the high rate of growth in the economy at the current period (2) the increased ... period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy
Last Answer : (3) the improper growth of the economy Explanation: When national output is multiplied by present ruling price, we obtain national income at current prices. On the other hand if the national output is ... not indicate increase in product or output, but is rather due to the rise in price level.
Description : When aggregate supply exceeds aggregate demand - (1) unemployment falls (2) prices rise (3) inventories accumulate (4) unemployment develops
Last Answer : (3) inventories accumulate Explanation: Deflation sets in when aggregate supply exceeds aggregate demand. Recession sets in. This will lead to a buildup in stocks (inventories) and this sends a signal to ... Either way -there is a tendency for output to move closer to the current level of demand.
Description : Forced Savings refer to - (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees
Last Answer : (1) Reduction of consumption consequent to a rise in prices Explanation: Forced saving is an economic situation in which consumers spend less than their disposable income, not because they want to ... free economy, this situation would normally result in increase in prices and inflow of more goods.
Description : Forced Savings refer to (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees
Last Answer : Reduction of consumption consequent to a rise in prices
Description : A Black Market is a situation wherein (1) Goods are loaded by the producers (2) Goods are sold secretly (3) Goods are sold at prices higher than what is fixed by the Government (4) Goods are made available (sold) only after there is a rise in prices
Last Answer : Goods are sold secretly
Description : A very high rise in National Income at current market prices and a low rise at constant prices reveals (1) the high rate of growth in the economy at the current period (2) the increased production ... (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy
Last Answer : the high rate of inflation prevailing in the economy
Description : When aggregate supply exceeds aggregate demand (1) unemployment falls (2) prices rise (3) inventories accumulate (4) unemployment develops
Last Answer : inventories accumulate
Description : A piece of ice is floating in water kept in a beaker. When all the ice melts the level of water will - (1) first rise and then fall (2) fall (3) remain the same (4) rise
Last Answer : (3) remain the same Explanation: The submerged portion of the ice on melting shrinks a little in volume. So the level of water goes down a little. But this is just made up by the water added by the melting of upper portion.
Description : Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners: A. U.S. exports tend to rise and imports tend to fall ... C. U.S. foreign exchange reserves tend to rise D. U.S. foreign exchange reserves remain constant
Last Answer : B. U.S. imports tend to rise and exports tend to fall
Description : Why are the new tariffs causing U.S. domestic steel producers' stock prices to fall?
Last Answer : ~ ~ ~ ~ Wait wait wait, you listening to the Orange haired tax master ??
Description : In a boom (a) Unemployment is likely to fall. (b) Prices are likely to fall © Demand is likely to fall
Last Answer : (a) Unemployment is likely to fall.
Description : Other things being equal, a decrease in quantity demanded of a commodity can be caused by – (1) a rise in the price of the commodity (2) a rise in the income of the consumer (3) a fall in the price of a commodity (4) a fall in the income of the consumer
Last Answer : (1) a rise in the price of the commodity Explanation: In economics, the law states that, all else being equal, as the price of a product increases, quantity demanded falls; likewise, as the price of a product decreases, quantity demanded increases.
Description : A fall in demand or rise in supply of a commodity— (1) Increases the price of that commodity (2) decreases the price of that commodity (3) neutralizes the changes in the price (4) determines" the price elasticity
Last Answer : (2) decreases the price of that commodity Explanation: The four basic laws of supply and demand are: (1) If demand increases and supply remains unchanged, a shortage occurs, leading to a higher ... (4) If demand remains unchanged and supply decreases, a shortage occurs, leading to a higher price.
Description : The demand for which of the following commodity will not rise in spite of a fall in its price? (1) Television (2) Refrigerator (3) Salt (4) Meat
Last Answer : (3) Salt Explanation: For certain goods called necessities, demand is not related to income. Demand for salt does not increase with the increase in income & does not decrease with the decrease in ... irrespective of income. The demand curve slopes downward for goods like salt, but it is inelastic.
Description : Deficit financing leads to (a) Price rise (b) Price fall (c) Price control (d) None of the above
Last Answer : a) Price rise
Description : Other things being equal, a decrease in quantity demanded of a commodity can be caused by (1) a rise in the price of the commodity (2) a rise in the income of the consumer (3) a fall in the price of a commodity (4) a fall in the income of the consumer
Last Answer : a rise in the price of the commodity
Description : A fall in demand or rise in supply of a commodity– (1) Increases the price of that commodity (2) decreases the price of that commodity (3) neutralises the changes in the price (4) determines the price elasticity
Last Answer : decreases the price of that commodity
Last Answer : Salt
Description : What will happen to the resistance if the electric conductor temperature and cross section remain unchanged ?
Last Answer : If the conductive temperature and the cross section remain unchanged, increasing the length will increase the resistance.
Description : A patient on oral anticoagulant therapy is commenced on sulfamethoxazoletrimethoprim, double-strength twice daily. One may expect to see the international normalized ratio (a) Increase (b) Decrease (c) Remain unchanged
Last Answer : Ans: A