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Asian Institute of Management

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Answer: A) Glutamine
Answer: WPA2-PSK (AES)
Answer: Sound card
Answer: 4. tablets
Answer: (d) L-Proline
Answer: [D] Vitamins
Answer: [C] it decreases with increase of azimuthal quantum number
Answer: [C] n2
Answer: [B] Al2O3
Answer: [C] Wrought iron
Answer: [B] Oxygen > Silicon > Aluminium > Iron
Answer: C] it is harmless in small concentrations
Answer: [C] Both a and b
Answer: [C] Gases
Answer: [D] 1, 2, 3 & 4
Answer: [A] Only 1 & 2
Answer: [C] Both 1 & 2
Answer: C] Antharacite
Answer: C] Acetic acid
Answer: C] Zeolite method
Answer: D] Calcium
Answer: A.adding sodium carbonate
Answer: [A] Video & Graphics
Answer: C.false
Answer: False
Answer: d) it is impossible to determine how the burden of the tax will be sha...
Answer: 1.A. decrease by exactly $2.
Answer: a. buyers will bear most of the burden of the tax.
Answer: d. The worker and the employer each bear half of the burden (incidence...

#30. True or False - The demand for soap is more elastic than the demand for Dove soap.

#31. Price controls are usually enacted

a.

as a means of raising revenue for public purposes.

b.

when policymakers believe that the market price of a good or service is unfair to buyers or sellers.

c.

when policymakers detect inefficiencies in a market.

d.

All of the above are correct.

#32. A price ceiling will be binding only if it is set

a.

equal to the equilibrium price.

b.

above the equilibrium price.

c.

below the equilibrium price.

d.

either above or below the equilibrium price.

#33. A price floor is

a.

a legal minimum on the price at which a good can be sold.

b.

often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price floor.

c.

a source of inefficiency in a market.

d.

All of the above are correct.

Figure 1-1

Panel (a)

Panel (b)

#34. Refer to Figure 1-1. In panel (b), there will be

a.

a shortage of wheat.

b.

equilibrium in the market.

c.

a surplus of wheat.

d.

lines of people waiting to buy wheat.

Figure 1-2

#35. Refer to Figure 1-2. When the price ceiling applies in this market, and the supply curve for gasoline shifts from S1 to S2,

a.

the market price will increase to P3.

b.

a surplus will occur at the new market price of P2.

c.

the market price will stay at P1.

d.

a shortage will occur at the new market price of P2.

#36. Suppose sellers of perfume are required to send $1.00 to the government for every bottle of perfume they sell. Further, suppose this tax causes the price paid by buyers of perfume to rise by $0.60 per bottle. Which of the following statements is correct?

a.

The effective price received by sellers is $0.40 per bottle less than it was before the tax.

b.

Sixty percent of the burden of the tax falls on sellers.

c.

This tax causes the demand curve for perfume to shift downward by $1.00 at each quantity of perfume.

d.

All of the above are correct.

#37. When a tax is placed on the buyers of lemonade, the

a.

sellers bear the entire burden of the tax.

b.

buyers bear the entire burden of the tax.

c.

burden of the tax will be always be equally divided between the buyers and the sellers.

d.

burden of the tax will be shared by the buyers and the sellers, but the division of the burden is not always equal.

Figure 1-3

The vertical distance between points A and B represents the tax in the market.

#38. Refer to Figure 1-3. The price that buyers pay after the tax is imposed is

a.

$8.

b.

$10.

c.

$16.

d.

$24.

#39. Refer to Figure 1-3. The effective price that sellers receive after the tax is imposed is

a.

$6.

b.

$10.

c.

$16.

d.

$24.

#40. Refer to Figure 1-3. The amount of the tax per unit is

a.

$6.

b.

$8.

c.

$14.

d.

$18.

#41. True/False - The tax burden falls more heavily on the side of the market that is more inelastic.

#42. True/False - Even though federal law mandates that workers and firms each pay half of the total FICA tax, the tax burden may not fall equally on workers and firms.

Answer: 31. d.All of the above are correct.
Answer: 1.B. Discount Rate
Answer: 1.a) Property tax revenue.

Answer: B
Answer: 2.D

The economy is in equilibrium, TP = TE, and Real GDP is $4,555 billion. The MPC is 0.80, the multiplier is operative, and idle resources exist at each expenditure round. Government purchases rise by $10 billion. As a result, the __________ curve shifts __________, inventory levels unexpectedly __________, business firms ___________ the quantity of goods and services they produce, and Real GDP __________ by __________.

a.

TE; downward; fall; increase; rises; $10 billion.

b.

TP; rightward; fall; decrease; falls; $50 billion

c.

TE; upward; fall; increase; rises; $50 billion

d.

TE; downward; rise; increase; rises, $50 billion

Bank A has checkable deposits of $900,000 and total reserves of $112,000. If the required reserve ratio is 8 percent, the bank has excess reserves of

a.

$40,000.

b.

$72,000.

c.

$13,440.

d.

$4,000

A tariff is imposed on strawberries. The tariff will ___________ the price of strawberries in the domestic market, _____________ the quantity of strawberries imported in the domestic market, and ____________ consumers’ surplus.

a.

raise; lower; lower

b.

lower; raise; lower

c.

raise; lower; raise

d.

lower; lower; raise

The economy is in a recessionary gap, wages are inflexible downward, and there is complete crowding out. Which of the following is consistent with this state of affairs?

a.

The economy will soon self-regulate and produce Natural Real GDP.

b.

Expansionary fiscal policy will be effective at removing the economy from the recessionary gap.

c.

If expansionary fiscal policy is implemented, the AD curve will shift to the right, and eventually the price level and Real GDP will rise.

d.

b and c

e.

none of the above

When Bank A obtains a loan from the Fed, the

a.

discount rate is probably higher than the federal funds rate.

b.

bank’s reserves increase.

c.

simple deposit multiplier decreases.

d.

b and c

e.

none of the above

Answer: d.TE; downward; rise; increase; rises, $50 billion
Answer: 1. d. Lower taxes caused by tax reform designed to lower tax rates on ...
Questions 6-10

Answer: C.
Answer: D. The government needs to decrease spending by $500 billion.
Answer: increase governemnt spending by $300 billion
Answer: $100 billion.

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