UNICAL Economics 2019/2020 Past Questions

Practice each question, then open it to see the full details.

To calculate the annual natural growth rate of a country's population, one has to know the country's annual birth rate and

A.The size of that country
B.The rate of immigration into that country
C.The population census of that country
D.The annual death rate
E.The gross domestic product (GDP) of the country

The difference between gross national product and net national product is equal to

A.Gross investment
B.Net investment
C.Net foreign income
D.Capital depreciation
E.Net and gross

A firm achieves least cost in production by substituting factors until

A.their factor prices are equal
B.their marginal products are equal to the factor prices
C.their marginal products are each equal to zero
D.the ratios of their marginal product equals the ratio of their prices
E.none of the above

Production that takes place within the production possibility curve is said to be

A.inefficient
B.possible
C.with increased output
D.x-efficient
E.pareto compliant

As interest rate increases,

A.investment declines
B.it is not certain what happens to investment
C.investment increases
D.investment remains constant

All of the following are assets of a commercial bank except

A.cash
B.Bills discounted
C.bank deposits
D.advances to customers

Which of the following statements is true of the effect of changes in demand and supply on price?

A.a decrease in supply will lead to the fall in price and a fall in the quantity bought and sold
B.an increase in demand will lead to a fall in price and in the quantity bought and sold
C.a decrease in demand will lead to a rise in price and in the quantity bought and sold
D.an increase in supply will lead to a fall in price and a rise in the quantity bought and sold

Economics speak about 'opportunity cost' when a consumer

A.has the chance to minimize costs
B.has to forgo one thing in order to have another
C.can equate its fixed costs' with his variable costs
D.is able to save part of his income

A commercial bank is able to create money

A.by printing
B.by maintaining reserves
C.by creating demand deposit as it gives a new loan
D.by issuing cheques to depositors
E.by borrowing from the Central bank

An economic problem arises when

A.Manufactured goods are in short supply
B.money is in short supply
C.Buyers are many
D.Sellers are few
E.scarcity and choice are involved