Question # 1

the difference between actual and planned expenditure is equal to.

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X -M

M- X

Unplanned inventory change

Excess reserves of depository institutions.

An increasingly higher marginal income tax is

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Progressive

Regressive

Proportional

Both b and c

An economy that has achieved full production has achieved

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Both allocative and productive efficiency

Allocative but not productive efficiency

Productive but not allocative efficiency

Neither allocative nor productive efficiency

If the % change in quantity demanded is more than % change in price coefficient of price elasticity is.

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>1

<1

=1

=zero

Riskless transactions to take advantage of profit opportunities due to a price differential or a yield differential in excess of transaction costa are called

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deferential actions

Cash transactions,

Arbitrage

Forward transactions

The investment demand curve shifts right ward if

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The real interest rate falls

Savers increase their thriftiness

The expected profit rate increases.

The economy moves into a recession

A straight line downward sloping demand curve implies that as price falls the elasticity of demand.

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Increases

Decreases

Remain the same

None of these

A purely monetary explanation of the business cycle is proposed by

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Hawtrey

Schumpeter

Hansen

None of these

Absolute advantage is determined by.,

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Actual difference in labor productivity between countries.

Relative difference in labor productivity between countries.

Both a and b

neither a and b

In oligopoly market seller are.

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Few

Four

Some

A large number

If in market the seller is changing different prices for the same commodity from different consumers it is known as.

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Price discrimination

efficient selling

Profit maxi miser in Monopoly

all of these

A pure number by which change in investment is multiplied to change in income is called

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Multiplier

Accelerator

Stabilizer

All of these

Comparative advantage is determined by

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Actual difference in labor productivity between countries.

Relative difference in labor productivity between countries.

both a and b

Neither a and b

In the theory of the firm profit maximization is always synonymous with.

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Profitability

Economic profit making

maximization of the sales revenue

None of these

an more labor is added to a fixed amount of input the rate at which output goes up begins to decrease This is called.

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Diminishing marginal utility

Diminishing marginal productivity

Diminishing marginal costs

Diminishing marginal profit

In a "Lorenz curve diagram absolute equality in income distribution would appear as.

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A curved line well bowed out from the diagonal

A curved line close to the diagonal

A right angled line

A diagonal line

Most commonly referred indicator of inflation is

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Wholesale price index

Retail price index

Consumer price index

Sensitivity price index

Similar to import tariffs, import quotas tend to result in.

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Higher prices and reduced imports

Increasesed government revenue

Increased consumer surplus

Decrease producer surplus

Health of a country's economy is indicated by

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Number of doctors per 1,000 population

Per capital income

Literacy rate

None of the above

During the 1980's empirical evidence indicates that.

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Poverty re emerged in Pakistan

Good growth brought down poverty in Pakistan.

Poverty situation showed no change

None of the above

An important policy instrument to influence commercial banks is.

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Open market operations

Changing reserve ratios of commercial banks

Moral persuasion

None of the above

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