II. Fill in the correct word or word combination (a, b, c) 1. Macroeconomics is the branch of economics that ________ economics as a whole. a) studies b) study c) is studying 2. He ___________ the London University. a) has entered b) was entered had entered 3. Output this month is 5% ____________ than last month. a) highest b) higher c) high 4. A contract _________ the basis of a transaction between the Buyers and the Sellers. a) forms b) is formed c) form 5. The price _________ in a contract may be firm fixed, and sliding. a) state b) stating c) stated 6. The currency ____________ for payment is a matter for arrangement between the counterparts. a) to be used b) using c) is used 7. The credit cannot _________ before the expiry date. a) cancel b) be cancelled c) to be cancelled 8. A contract defines rights and obligations of the parties __________. a) involving b) to involve c) involved 9. In Smith’s view, a nation’s wealth _________ dependent upon production. a) were b) being c) was 10. Mercantilists ___________ for regulation of economy. a) called b)were calling c)has called 11. Thomas Malthus ________ a great prophet. a) was b) were c) has been 12. The equation of exchange helps _________ why prices fluctuate. a) explains b) to explain c) explained 13. Macroeconomics __________ with such major policy issues as maintenance of full employment and price stability. a) is concerned b) was concerned c) will be concerned 14. The questions __________ macroeconomist are in terms of broad aggregates. a) asked with b) ask with c) asked by 15. The individual consumer _________assumed to possess a utility function. a) was b) is c) will be

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