1141. An economy is in-equilibrium when :

A. Planned consumption exceeds
B. Planned consumption exceeds planned investment
C. Intended investment equal intended saving *
D. Intended investment exceeds equal intended saving

1142. Which measures taken by government would be intended to raise the price of imports ?

A. Foreign exchange control
B. Increase in rate of interest
C. Quolas
D. Tariff *

1143. Which can a government do to increase demand in its economy ?

A. Budget for a surplus
B. Cut taxes *
C. Encourage saving
D. Reduce is expenditure

1144. What is more likely to be found in a free market economy than in a planned economy ?

A. An even distribution of income
B. An incentive to income *
C. A wide range of public goods
D. Full employment of labour

1145. Which of the following is not a direct tax ?

A. Estate tax
B. Sales tax *
C. Tax on wealth
D. Tax on entertainment

1146. In a closed economic model aggregate demand is not sensitive to :

A. Interest rate
B. Exchange rate *
C. Price level
D. Income

1147. Which of the following bodies is an affiliate of the world bank ?

A. Asian development bank
B. International Monetary fund *
C. International development association
D. World trade organization

1148. Public limited companies try to list their shares with stock exchanges with the objective :

A. Of maintaining the management control
B. To provide protection to the investor
C. To keep liquidity for the directors *
D. None of these

1149. Taking advantages of price discrepancy among markets by buying cheap in one place and selling these somewhere else is known as :

A. Arbitrage *
B. Derivative
C. Option
D. Swap

1150. The liquidity trap condition occurs at a :

A. Low rate of interest
B. Very low rate of interest *
C. High rate of interest
D. Very high rate of interest