Question # 1

A vertical demand curve results in.

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No change in quantity when the supply curve shifts.

No change in price when the supply curve shifts

No change in the supply curve being possible

No change in quantity when the demand curve shifts.

Over time the wealth of society increases and payments technologies get more efficient What is the effect on money demand of these two changes.

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Money demand rises proportionately to the rise in wealth.

Money demand rises, but less than proportionately to the rise in wealth.

The overall effect in ambiguous

Money demand declines

If marginal cost is positive and falling.

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Total cost is falling

Total cost is increasing at a falling rate

Total cost is falling at a falling rate

Total cost is increasing at an increasing rate.

"The quantity demanded increases as its price increases and falls as its price falls" is called given goods, is presented by.

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Allen

Marshall

Adam smith

Robert griffin

By controlling the monetary base economists mean

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Controlling the money multiplier

Restricting the amount of cash in circulation

Not allowing commercial banks to issue notes and coins

making banks keep a certain % of their assets as M0

Eco philosophy deals with philosophy of

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Nature

Mind

Science

None of these

a x2 + bx + c = 0

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Linear equation

Quadratic equation

Polynomial of degree five

None of these

Scarcity means that

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We cannot have everything that we might want

We have to make choices between the things we desire.

There are costs to just about any activity we undertake

We must give up some thing in order to obtain other things.

All of the above are correct

The yield curve shows

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The yields on stocks of different maturities

The interest rates on bonds of different maturities.

The yields on stocks with differing default risk

The yields on bonds with differing default risk

Which of the following taxes is regressive

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The federal income tax

The state income tax

The sales tax

The Medicare tax

In which of the following situations will an increase in the money supply have no effect upon equilibrium iincome.

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LM is steeply sloped and IS is relatively that

LM is vertical and IS is stopped

LM is steeply sotped and IS is vertical

LM is relatively flat as is IS

At the intersection of AD and AS equilibrium is achieved in.

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The goods market

The money market

The labour market

All of the above

Equilibrium price is a price at which

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Quantity demanded is equal to quantity suppled

Quantity demanded minus quantity supplied is zero

quantity demanded = quantity supplied

All of these

What are the two broad functions of statistical methods in social research.

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Description and summarizing

Description and indication

Description and induction

Applied Mathematics and induction

Ordinal measurement approach was not presented by

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Allen

Hicks

Edge worth

Robbins

If a price increase of good A increases the quantity demanded of good B, then good B is a.

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substitute good

Complementary good

Bargain

Interior good

Monetarists believe that a reduction in _____ can be achieved by reducing.

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Unemployment, prices

Inflation, wages

Unemployment, wages

Inflation, the quantity of nominal money

A monopoly there is

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No difference between firm and industry

A few firms

Lot of firms

none of these

The main source of interest profits for banks is.

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Checking account fees

Loans

Government securities

Savigng accounts

When a market is contestable , incumbent firms must.________ to avoid the entry of new competitors.

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Behave like competitive firms

Agree to act together

Differentiate their products

Practice price discrimination

Where there is an equal increase in net tax revenue and government spending, ceteris paribus.

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(C+I+G) is shifting upward

(C+I+G) is shifting downward

(C+I+G) does not shift

All of these

In market economics the incentive that draws entrepreneurs into industry is.

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Government bonuses for meeting production quotas

Profit

Government assumption of the risk of failure

Government assistance with making output and pricing decisions

From a Keynesian perspective business investment will de cline as a result of.

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A fall in the interest rate

A decrease in business taxes

A decline in business expectations

Acceleration of business depreciation

Find the change in revenue to the industry due to the taxs.

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Rs. 40 billion

Rs. 34 million

Rs.25 million

Rs.36 Million.

Aggregate demand will increase if

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Consumption falls

Investment falls

Exports fall

imports fall

If demand is price inelastic.

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An increase in price must raise profits

An increase in price decreases revenue

An increase in price increase revenue

A decrease in price reduces sales.

National sample survey scheme is an example for

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Government policy

Planning

Population analysis

Business

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

Which of the following best defines price discrimination.

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Charging different prices on the basis of race

Charging different prices for goods with different costs of production

Charging different prices based on cost of service differences.

Selling a certain product of given quality and cost per unit at different prices to different buyers

If a good is normal then the demand curve for that good must be.

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Downward sloping

Upward sloping

Perfectly elastic

Completely inelastic

Given fixed exchange rates assume Pakistan initiates contractionary monetary ad fiscal policies to combat inflation. these policies will also.

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Reduce a balance of payments surplus

Reduce a balance of payments deficit

Increases both imports and exports

Decrease both imports and exports

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