Question # 1

If your income doubles and the prices of the goods you buy double, then your demand for these goods will likely

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Increase

Not change

Decrease

Shift

An increase in national income is.

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Likely to increase exports

Likely to decrease savings

Likely to decrease investment

Likely to increase spending on imports

A determinant composed of all the first order partial derivatives of a system of equations, arranged in ordered sequence is called.

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Hassian determinatn

Jacobian determiant

Discrimianant

First order determinant

According to the supply side model a reduction in the tax rate.

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Could reduce the size of any budget deficit

Would have no effect on output

Would have no effect on consumption

None of the above

Arne Naes is a

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French philosopher

American philosopher

Norwegian Philosopher

Pakistani Philosopher

Which of the following is not an obvious or direct determinant of a country's imports.

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Real exchange rate

Income

Tariff rates

Interest rate

Whose opinions have revolutionized the scope of macro economics.

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Adam Smith

J.B. Say

J.M. Keynes

All of the above

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

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Export quota

Embargo

Auction quota

Tariff quota

An Invention is set to be neutral when it raises the marginal productivities of labor and capital in the same proportion is said by

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Rostow

Todoro

Solow

Haicks

A dominant strategy is.

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A winning strategy

A losing strategy

A players best strategy when moving fist

a player's best strategy whatever the strategies adopted by rivals

A rise in the exchange rate value of the rupee will most likely cause.

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A dollar to be worth less in learns of other currencies.

Imports to decrease

Exports to increase

The balance of payments curve to shift to the left

If one car company takes over another car company this is an example of which type of integration.

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Vertical

Horizontal

Conglomerate

Literal

An autonomous rise in the value of the Rupee makes Pakistan goods _____ expensive relative to foresight goods which ______ net exports

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Less ; decreases

Less ; increases

More ; decreases

more ; increases

An increase in the marginal propensity to import.

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Has the some effect upon the multipliers as an increase in the MPC

Has no effect upon the multipliers

Increases the value of the multipliers

Decreases the value of the multipllers

If each element of a raw or column is a sum of two elements, the determinant can be expressed as the

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Sun of two determinants

Difference of two determinants

Multiplication of two determinants

Division of two determinants

When the economy goes into are cession there's an increase in.

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Frictional unemployment

structural unemployment

Cyclical unemployment

Voluntary unemployment

Which market adjusts the quickest in response to shocks to the economy.

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The asset market

The labor market

The goods market

In the macro economy

Which of the following macro economic variables is the most seasonally pro cyclical.

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Expenditure on services

The unemployment rate

Expenditure on durable goods

The real wage

The open type of questionnaire calls for a free response in the respondent's

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Own words

Observation

Facts

Data

The liquidity trap occurs when the demand for money

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Is perfectly interest elastic

Is perfectly interest inelastic

Means that an increase in money supply leads to a fall int he interest rate

Means that an increase in the money supply leads to an increase in the interest rate

Which one of the following is the largest sector of Pakistan Economy.

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Agriculture

Banking

Industry

Manufacturing

World Bank was established at the Briton wood conference in.

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1942

1944

1943

1940

Which of the following can the government not use directly to control the economy.

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Pay rates within the privates sector

Pay rates in the public sector

Investment in education

Benefits available for the un employed and sick

The equilibrium inflation rate is determine by the intersection of __________ and ___

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demand, supply

IS , LM

AD, AS

Labour demand, labour supply

The quantity of money demanded increases with income Thus if income increases the opportunity cost of holding money demand and re establish equilibrium in the money market This relation is captured by.

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An upward stopping LM curve

A downward sloping L curve

A downward sloping IS curve

The circular flow of money in the economy.

__________ is a said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries infavor of member countries.

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Trade creation

Trade diversion

Trade exclusion

Trade distortion

The downward kinked demand curve facing the individual oligopolistic implies that

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He face price certainlty

Competitors have a tendency to follow price decreases but not price increase

Total revenue remains same if a firm increases price

None of these

The comparative advantage model of Ricardo was based on.

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Interindustry specialization and trade

Demand conditions underlying specialization and trade

Income conditions underlying specialization and trade

A tariff that probibits imports ahs only

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A revenue effect and redislnbution effect

Revenue effect and protection effect

Consumption effect and production effect

Redistribution effect and consumption effect

The ratio of debt to GDP will be larger

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The lower the real interest rate

The lower the growth rate of output

The lower the in initial debt ratio

The lower the ratio of the primary deficit to GDP

A decline in the money supply shifts the LM curve to the left causing the interest rate to ________ and output to___

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rise ; rise

rise ; fall

fall ; rise

fall ; fall

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