11. In regard to Al Ain Financial Consultant announcement, whichone of the following is INCORRECT Normative Statements?

Lower tax would result in higher spending 2 %

increase in investment would result 5 % hike in businessgrowth

Lower taxes would result in low income

Taxes should be higher

12. Identify which one of the following changes in supply curveoccurs when there is an increase in price of product:

Increase in supply

Decrease in supply

Extension in supply

Contraction in supply

13.

Which one of the following is NOT the objectives due to whichauthorities are fixing the maximum or minimum level ofprices:

Full utilization of resources

Affordable to most people

Price stability

Maintenance of income

14. Which one of the following market structure has large numberof firms that sells similar but slightly differentproducts?

Oligopoly

Perfect competition

Monopolistic competition

Monopoly

15.

If the minimum wage is above the equilibrium level, the quantityof labor supplied exceeds the quantity of labor demanded. Thiscreates the situation of:

None of the given options

Unemployment

Full employment

Inequality in wages

16. Which one of the following are functions of central planningauthority?

Decides preference of products to produce

None of the given options are correct

Profit motive but not social benefit

Control all resources of economy

17.Economics is an Art because:

There is application of cause and effectIt

is easy to understand

The facts are measurable

It is the practical side of theory

18. If the price of a product increases by 10% and demanddecreases by 25%. It is the situation of:

Relatively inelastic demand

Unitary elastic demand

Relatively elastic demand

Perfectly elastic demand

19. The mechanism where government ensures to distribute thescarce goods among the large number of potential buyers is knownas:

Price stability

Flat price

Rationing

Excess of demand