A variable whose value is determined by the model of which it is a part is termed ?

Related Mcqs:

1. In the classical model of Ricardo, the direction of trade is determined by ?

   A. Absolute advantage
   B. Comparative advantage
   C. Physical advantage
   D. Which way the wind blows

2. The Heckscher-Ohl in model rules out the classical model’s basis for trade by assuming that _________ is (are) identical between countries?

   A. factor endowments
   B. factor intensities
   C. technology
   D. opportunity costs

3. The hypothesis that people know the true model of the economy and that they use this model to form their expectations of the future is the ?

   A. Rational-expectations hypothesis
   B. Passive-expectations hypothesis
   C. adaptive expectations hypothesis
   D. lagged-expectations hypothesis.

4. The Keynesian model is a good guide to ____ behavior and the classical model describes behavior in ______?

   A. long run, short run
   B. flexible imperfect markets
   C. short-term long run
   D. long run, imperfect markets

5. The exchange value of the U.S dollar is primarily determined by ?

   A. the rate of inflation in the United States
   B. the number of dollars printed by the U.S government
   C. the international demand and supply for dollars
   D. the monetary value of gold held at Fort Knox, Kentucky

6. Because of the decrease in the value of money, there comes exaggerated increase in incomes and prices. How is termed this system ?

   A. Hyperinflation
   B. Ultra-inflation
   C. A cute inflation
   D. Super inflation

7. Which of the following is a form of international reserve assets, created by IMF in 1967 whose value is based on a portfolio of widely used currencies ?

   A. Special Drawing Right (SDR)
   B. IMF Drawing Rights (SDR)
   C. International Drawing Right (IDR)
   D. Sure, Drawing Rights (SDR)

8. The highest grade of coal whose surface is shining and has the highest calorific value is ?

   A. Lignite
   B. Peat
   C. Bituminous
   D. Anthracite

9. In a free market the combination of products produced will be determined by ?

   A. Market forces of supply and demand
   B. The government
   C. The law
   D. The public Sector

10. The accelerator theory of investment says that induced investment is determined by ?

    A. the level of national income
    B. the level of aggregate demand
    C. the rate of change of national income
    D. expectations