Question # 1

Accordant the wealth effect , an increase i the price level _______ real wealth and ____ consumption expenditure.

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Increase, Increases.

Increases ; decreases

decreases ; increases

decreases ; decreases

The impact and incidence of sales tax is

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On the consumer

On the seller

On the producer

None of these

The production function will be affected by changes in the prices of.

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Inputs

Outputs

Neither

All of the above

Which of the following is likely ot be longer for monetary policy that for fiscal policy.

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The implementation lag

The recognition log

Both a and b

None of these

All economic model ae based on

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Realistic assumptions

Assumptions which can never be perfectly realistic

Unrealistic assumptions

None of the above

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

If saving rate is 12.0% , ICOR value is 3% and population Rate is 2.0% then the Growth Rate would be.

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2.0%

3.65

4.0%

6.0%

In order of practice price discrimination which of the following is needed.

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Some degree of monopoly power

An ability to separate the market

An ability to prevent reselling

All of the above

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

The supply of foreign currency tends to be

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upward sloping

down ward sloping

Vertical

any of the above

Most commonly referred indicator of inflation is

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Wholesale price index

Retail price index

Consumer price index

Sensitivity price index

An increasingly higher marginal income tax is

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Progressive

Regressive

Proportional

Both b and c

Industrial polices intended to foster comparative advantage for domestic industries could result in the implementation of.

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Research and development subsidies

Loan guarantees

Low interest rate loans

All of the above

The agricultural price support program is an example of.

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A price celling

A price floor

Equilibrium pricing

None of these

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

All economic model ae based on

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Realistic assumptions

Assumptions which can never be perfectly realistic

Unrealistic assumptions

None of the above

With no government and foreign trade sectors savings always equals.

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Intended investment

Realized investment

Botha a and b

None of these

In the classical model of Ricardo the direction of trade is delemined by.

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Absolute advantage

Comparative advantage

Physical advantage

Which way the wind blows

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

In 25 years Pakistan's Per capital income

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More than doubled

Less than doubled

Did not show more than 70% increase

None of the above

Which of the following is often considered to be inconsistent with the notion of perfect competition.

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Large number of firms

Free entry

Complete mobility

None of these

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