11. The arithmetic mean of 5, 8, 10, 15, 24 and 28 is_______
- A. 145
- B. 15
- C. 90
- D. 6
12. A method of analysis that draws conclusions from data rather than general Principles already known is________
- A. Deductive reasoning
- B. Inductive reasoning
- C. Normative reasoning
- D. Positive reasoning
13. The money market equilibrium is defined as_________
- A. when the demand and supply of money are equal
- B. when demand is greater than supply of money
- C. when demand is less than supply of money
- D. when supply is greater than demand for money
14. An economic condition in which much reduced economic activity co-exists with inflation is referred to as__________
- A. stagflation
- B. inflationary spiral
- C. slump inflation
- D. inflationary gap
15. An Instrument used by the central bank to fix commercial and merchant banks total credit to domestic economy is________
- A. monetary policy
- B. fiscal policy
- C. credit ceiling
- D. open market operation
16. Restrictive monetary policy is designed to curtail aggregate demand and to overcome________
- A. Deflation
- B. Reinflation
- C. Disinflation
- D. Inflationary gap
17. The average curve and the marginal curve are U-shaped in the short-run and flatter in the long-run due to________
- A. Economies of scale
- B. Money cost
- C. Opportunity cost
- D. Cost functions
18. The most important cost curve for the firm is_________
- A. MC
- B. AC
- C. TC
- D. FC
19. In the case of highly or close complementary goods, the indifference curve is_______
- A. A straight line
- B. A right-angled
- C. L – shaped
- D. Curvature
20.
One of these is not an assumption of the cardinalist theory of utility?
- A. The consumer is rational
- B. Diminishing marginal utility
- C. The concept of money utility
- D. Consistency and transivity of choice
