Question # 1

The marginal rate of tax paid is.

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The total tax paid /total income

Total income/total tax paid

Change in the tax paid/change in income

Change in income/change in tax paid

If a person's MPC is always two thirds and that person's break even point is Rs. 6,000, at a disposable income of Rs.9,000 the person's consumption expenditures will be.

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Rs. 8,000

Rs. 5,000

Rs.6,000

Rs.7500

A variable which is free to take any value we choose to assign to it is called.

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Dependent variable

Independent variable

Endogenous variable

Explained variable

In a recession

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Unemployment is likely to be low

prices are likely to increase

Growth is negative

Growth is slow

In long run a reduction in labor supply would cause output to __ and the aggregate price level to.

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fall ; rise

fall ; fall

rise ; fall

rise ; rise

Usury is prohibited in

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Islam only

Sikhism only

Jewism

Both a and b

During the last eight years the per capita income in Pakistan has been

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Increasing substantially because of decline in population growth

Decreasing

increasing only marginally

Constant

Zakat in an important feature of Islamic economics system which is given from

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Poor to rich

Producers to consumers

Banks to people

Rich to poor

Which of the following methods is used for internalizaing positive externalities

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Positive taxes

Government exchange of property rights

Effluent fees

Corrective substidies

A group of modern economists who believe that price and wage rigidities do not provide the only rationale for macroeconomic policy activism are called.

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New Keynesians

Keynesians

Monetarists

The Classical shool

The board pumps money out of the economy by

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Buying bonds

Selling bond

Creating cash

Lowering the reserve requirements.

When the quantity demanded is changed on the same price

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the demand curve shifts upward

The demand curve shifts downward

Movement on the same demand curve

None of these

The price elasticity of demand will increase with the length of the period to which the demand curve pertains because.

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Consumers incomes will increase

The demand curve will shift toward

All prices will increase over time

Consumers will be better able to find substitutes

Economists use the phrase ceteris paribus to express the assumption.

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All else equal

Everything affects everything else.

Scarcity is a fact of life

There is no such thing as a free lunch

The definition of various terms, units of collection and measurement help ensuring that.

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Analysis is easy

Method is systematic and emprical

Construction of conclusions easy

Data is relevant to the purpose

Tariffs.

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Decrease the domestic price of a product.

Increase government earnings from tax

Increase the quantity of imports

Decrease domestic production

Census is held in Pakistan after every ___ year

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5

10

15

20

Price discrimination is possible

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Oligopoly

Duopoly

Perfect competition

Monopoly

A_______ is an example of a quota where foreigners hold quota licenses.

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Export quota

Embargo

Auction quota

Tariff quota

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

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

When the demand curve is a straight line the elasticity of demand at the center point will be.

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Equal to zero

infinite

More than one

Equal to one

Barriers to entry do not include

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Patents

Internal economics of scale

Mobility of resources

High investment costs

International trade in goods and services is sometimes used as a substitute for all of the following except.

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International movements of capital

International movement of labor

International movement of technology

Domestics production of different goods and services

A set continuing no elements is called.

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Null set

mpty set

void set

all of the above

If for the output of worth 1 million the stock of capital worth 4 million is required this will be.

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capital profit ratio

Output profit ration

Capital output ratio

Capital input ratio

A tax 15 percent per imported item would be an example of a

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Ad valorem tariff

specific tariff

Effective tariff

Compound tariff

What is the share of Urban Population in the total population of Pakistan.

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38.6%

42.6%

41.0%

32.5%

The most important determinant of price elasticity is.

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The slope of the demand curve

The availability of substitutes

The price of other goods

The income of the consumer

The largest trading partner of Pakistan is

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Italy

UK

USA

None of these

What is the per unit marginal cost of increasing production from 20 to 25 units.

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Rs. 3,500

Rs.100

Rs.4,000

Rs.500

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