Question # 1

In linear consumption function with a positive slope less that on means that if income increase, consumption will.

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Fall

Not change

Fluctuate

Increase

The main source of interest profits for banks is.

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Checking account fees

Loans

Government securities

Savigng accounts

Theories of surplus labor describe that

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In UDCs unemployment rate is high

The margin productivity labor is near to zero

Overpopulation is much more in UDCs

DCs have less uemployment

All of the following are obstacles to international economic policy coordination except.

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Different national objectives are institutions

Different national political climates

Different phases in the business cycle

Different national currencies.

Poor developing countries typically impose ______ tariffs than rich advanced nations on imports.

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Lower

Higher

About the same height

None of the above

Julius smon ha pointed out the applied social sciences in.

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Policy assessment

Policy implementation

Policy formulation

Policy decision

Pure research is focused to collect knowledge without any intention to.

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Find it

Formulation

Observe it

apply it

A proposition which can be putto test to determine validity

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Hypothesis

Operational definition

Data collection tool

Research design

The question "What is living? is important in

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Eco centered ethics

Animal centered ethics

Life centered ethics

Human centered ethics

Negative taxation refers to.

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Tax rebate

Subsidies

Tax evasion

Tax avoidance

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

After a temporary beneficial supply shock hits the economy general equilibrium is restored by

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A shift down and to the left of the IS curve

A shift to the left of the FE line

A shift up and to the left to the LM curve

A shift down and to the right of the LM curve

The long run Phillips curve is

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Vertical

Horizontal

Upward sloping

Downward sloping

In a less developed country.

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The infrastructure is likely to be good.

Real wages are likely to be high

Unemployment is likely to be low

The primary sector is likely to be significant

When a government prints money to finance its expenditures it is likely to cause

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Unemployment

Inflation

Deflation

Reductions in the use of barter

Micro economics studies such topics as

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The factors that determine inflation

The forces that influence the price of shoes

The determinants of total output

Whether the unemployment rate will rise or fall

Suppose nominal GNP is Rs.500 in year 1, the base year If the GNP deflator doubles by year 6 while real output has increased 40% nominal output in year 6 equals.

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Rs.2000

Rs.1400

Rs.1000

Rs.750

Compared to the case of perfect competition, a monopolist is more likely to

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Charge a higher price

Produce a lower quantity of the product

Make a greater amount of economic profit

All of the above

The diamond water paradox can be explained by suggesting that the price of a product is determined by.

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Consumer incomes

Its marginal utility

Consumer surplus

Diminishing marginal utility

A business cycle refers to.

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Fluctuations in the general price level

changes in the long term growth pattern of the CPI

The ups and downs of real GDP

Fluctuations in the level of corporate.

Which of the following changes shifts the AD curve up and to the right.

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A rise in the nominal money supply

An increase in income taxes

An increase in the risk on nonmonetary assets

A decreasing the future marginal productivity of capital.

Which of the following rights be a scarce good.

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Love

faith

Self control

All of above

When planned consumption equals Rs. 40 + 0.90 Yd and planned investment is Rs.50, the equilibrium level of income is.

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Rs.90

Rs.400

Rs.500

Rs.900

A government might use tax to.

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Discourage consumption of positive externalities

Discourage consumption of public goods

Discourage consumption of merit goods

Discourage consumption of negative externalities

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

If marginal utility is zero.

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Total utility is zero

An additional unit of consumption will decrease total utility

An additional unit of consumption will increase total utility

Total utility is maximized

By death of any partner business will be dissolved in case of

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Partnership

Musharika

Hire purchase

Mudaraba

Equilibrium in the money markets can be expressed by the equation i = 9k/h) Y -M/h. The slope of LM decrease when

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k increases and h increase

k increases and h decrease

k decrease and h increase

k decrease and h decrease

Research design indicate a plan of action to be carried out in connection with a proposed.

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Research proposal

Research methodology

Research abstract

Research work

When a nations money supply is Rs.1200 billion and the nominal Gros National product is Rs.4800 billion the velocity of money is.

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0.25

4

0.4

Rs.4 billion

Economists use the term utility to mean

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The value of a product before it has been advertised

The satisfaction a consumer obtains from a good or service

any characteristic of a good or service which cannot be measured

The contribution a good or service makes to social welfare

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