Question # 1

In autarky equilibrium.

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Production equals consumption

Export equal inmprts

There is no trade

All of the above

Which of the following the most elastic demand the extra revenue a firm receives from the services of an additional unit of a factor of production.

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Total revenue

Marginal physical product

Marginal revenues product

Marginal revenue.

A deflationary policy could include

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Increasing injections

Reducing taxation rates

Reducing interest rates

Reducing government spending

Union of A and the universal set is

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A

A'

Universal set

None of these

A decrease iin money demand other thing equal shifts the _____ curve to the

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IS ; right

Is ; Left

LM ; Left

LM ; Rfight

Nontariff trade barriers could include all of the following except.

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Domestic content laws

Government procurement polices

Health , safety, and environmental standards

Antidumping counter/vialling duties applied to imports.

A tax increase __________ disposable income ____ consumption expenditure and shifts the IS curve to the.

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Increase; increases ; right

Increase ; decreases ; left

decreases ; increases ; left

decreases ; decreases ; left

Which of the following procedures is included in the process that produces a value for disposable personal income

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subtracting excies and sales taxes

Subtracting nonbusiness interest

Subtracting transfer payment from government.

subtracting income taxes

As disposable income increases from Rs. 1500 to 2000 , saving increases from minus Rs. 50 to Rs.250 if the relationship between disposable income and saving is linear, the MPC obviously has a value of.

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.6

.8

.4

.2

In the monetary base is increased by $1,000 and the reserve requirement is 10% by how much will the money supply be increased.

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$100

$1,000

$5,000

$10,000

The set of 'stars in the sky' is an example of

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Countable set

Infinite set

Finite set

unit set

Output fell sharply in the transition economies because.

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Banks were undoable to function

There was little corporate control

Vital infrastructure was missing

All of the above

If the State bank of Pakistan wished to pursue a light monetary policy it would.

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Lower the required reserve ratio and the statutory liquidity ratio.

Lower interest rates

Buy government securities on the open market

Sell government securities on the open market

An economics variable that moves in the same direction as aggregate economic activity is called.

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Countercyclical

Procyclical

A cyclical

A leading variable

In land intensive method which mean production is used comparativelymore

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Labour

Land

Capital

Organization

The average variable cost curve.

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Is derived from the average fixed costs

Converges with the average cost as output increases

Equals revenue minum profits

Equal the total costs divided by the output

The first step in formulating a problem is.

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Statement of the prblem

Gathering of data

Measurement

Survey

The overall Budget Deficit is financed from

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External borrowing

Non bank borrowing domestically

Bank borrowing plus the above two at a and b

None of the above

Which of the following is not a supply side measure.

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Increased training

Providing more information

Helping individuals to move location to find work

Increasing spending on existing industries.

A activates which do not promote human welfare cannot be encouraged.

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Western estate

Police state

Islamic estate

None Islamic estate

Most commonly referred indicator of inflation is

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Wholesale price index

Retail price index

Consumer price index

Sensitivity price index

Disposable incomes is equal to.

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National income Minus taxes

Real GDP

National income Minus taxes

National income Minus Taxes plus transfers

If every element of a raw of column of a square matrix A is zero, then the value of the determinant. is.

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Equal

One

zero

Not equal

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

The market demand for a product is found by

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Horizontally summing the individual demand curves

Vertically summing the induvial demand curves

Both horizontally and vertically summing the individual demand curve.

None of the above

A major advantage of monetary over fiscal policy is that monetary policty.

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Can be put into effect more quickly

Affects all sectors of the economy equally

Authorities are quicker to see the need for policy

Has a more direct and predictable impact on spending.

The Schumpeterian growth model is based upon

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Inveslors

Capital formation

entrepreneurs

all of these

The arc income elasticity of demand is approximately

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0.02

1.9

3.3

0.5

In the short run, the supply of capital is _______ and in the long run iwll depend on.

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Variable technology

Fixed, expectations

Fixed, rental rate of capital

Variable, interest rates.

In singular sense 'Statistics' is considered as.

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Statistical data

Statistical methods

Both a a and b

None of these

Knowledge of the money supply can lead to good predications of nominal GDP only

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If the price level is stable

If the money supply is stable

Over very short periods of time

If the determinants of velocity are known

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