Economic growth is the

A. rate of increase in a country's full employment and real output

B. rate of increase in a nation's total population

C. rate of increase in inflation

D. rate of decrease inflation

E. growth in birth rate

The market price of a commodity is determine by the

A. total number of people in the market

B. total demand for the commodity

C. quantity of the commodity supplied

D. interaction of demand and supply

E. law of demand

If the price of margarine rises substantially, the equilibrium price and quantity of butter demand will

A. decrease

B. increase

C. remain constant

D. fluctuate

E. be inelastic

Money as a unit of account implies that it can be

A. counted in units

B. use to facilitate exchange

C. used to measure the value of goods and services

D. used to store goods and services

E. used for future payment

Which of the following does not increase the population of country

A. an increase in birth rate

B. a decrease in death rate

C. emigration

D. immigration

E. Early marriage

A stockholder partakes of the profit of a l8imited liability business by receiving

A. shares

B. profit

C. wages and salaries

D. dividends

E. gifts

Near Money is made up of

A. very liquid asset which can be easily converted into money

B. currency in circulation and demand deposit

C. note and coins

D. fixed assets which cannot be converted into money

E. the total money supplied in the economy

Which of the following is not characteristics of a perfect competition ?

A. many sellers and buyers are in the market

B. there is perfect knowledge of the market situation

C. supply and demand are equal

D. there is no discrimination

E. Products are identical

Which of the following is not a negative effect of inflation

A. Lenders earn less

B. Pensioneers and salary earners on fixed income suffer

C. Exports tends to decline

D. Savings are discouraged

E. Borrowers tends to gain

Which of the following is not function of central bank

A. Banker to the Government

B. Banker's bank

C. Acceptance of deposit from the public

D. Responsibility for monetary policy

E. Lenders of last resort