Question # 1

When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, which of the following curves slopes downward.

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SRAS

AD

LRAS

None of the above

Devaluation of rupee would result into

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Expensive exports

Expensive imports

Expensive labour

Overvalues Rupee

The two main characteristics of the production function are.

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It slopes downward from left to right and the slope become flatter as teh input increases

It slopes upward from left to the right the slope becomes steeper as the input increase

It slopes upward from left to right unput increases

It slopes downward from left to right and the slope becomes steeper ath the input increase

Why would corporations want to achieve zero balances in their checking accounts.

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To earn more interest

To avoid paying taxes

to keep a low profile

To circumvent banking regulations

An increase in price all other things unchanged leads to.

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A shift in supply out wards

A shift in supply in wards

A contraction of supply

An extension of supply

Real business cycle theories suggest that _____ to correct departures from the desired growth path.

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There is a role of fiscal policy

There is a role for monetary policy

There is a role for supply side policies

There is no case for stabilizing output over the business cycle.

The values are represented by identical symbol or pictures.

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Bar charts

Pictograms

Circle charts

graphs

An autonomous decline in the value of the Pakistan Rupee makes Pakistan goods _______ relative to foreign goods and results in a ______ in net exports.

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Cheaper ; decline

Cheaper ; rise

dearer ; decline

dearer ; rise

Plan for research is labeled as.

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Case study

Research design

Intensive study

Exploratory research

A decline expected future output would cause the IS curve to.

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Shift up and to the right

Shift down and to the left

Remain unchanged

shift up and to the right only if people face borrowing constratints.

Suppose the government provides a tax cut today that is matched by a tax increase in the future that's equal in present value to the tax cut This causes a consumer's saving to.

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Decrease

Increase

Remain unchanged

Increase if the person was a lender and decrease if the person was a borrower

In the economy when a steel producer sells steel to car producer it is regarded as.

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A final good

An intermediate good

an injection

a leakage

in large scale industry 46% share is contributed by

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Textile industry

Cement industry

coal industry

Steel and iron industry

The "balance of trade" is a record of.

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Exports and imports of financial assets

The current account plus capital account

The net export of goods and services

The value of merchandise exports minus imports

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

Data on the unemployment rate is collected from

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A survey of households at home

A surveys of individuals outside the home

a survey of business firms at each firms headquarters

A surveys of business firms at each store office of factory.

Unlimited supply of labor means in developing countries that part of man power which even if is withdrawn from the process of production there will be no fallen output is the theory of.

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Fei Rani

M.PP. Todaro

Lewis

Leibstein

A tax of 18 cents per unit of imported cheese would be an example of a.

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Compound tariff

Effective tariff

Ad valorem tariff

Specific tariff

Which of the following macroeconomic variables is procyclical and lags the business cycle.

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Business fixed investment

Empolyment

Stock prices

Nominal interest rates

What is embodies sampling.

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Haphazard selection

Numbers

Definite rules

Accuracy

The demand for labor is the same as the

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Marginal revenue product

Marginal physical product

Marginal cost

Wage

Why does it make sense in assume that people are rational, if you want to predict their behavior.

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People are not guided by emotions when making decisions

People wheo act in the way that best gets them what they want will tend to repeat that behavior, and will tend to learn from mistakes that they do make

People never make mistakes, and tend to make the correct choices all of the time

People always logically figure out what to do.

Islam is against

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Miseries

Luxurious spending

a and b

None of these

Allocative efficiency is achieved under which of the following market structures.

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Perfect competition

Monopolistic competition

Oligopoly

Monopoly

A nation experiences internal balance if it acieves.

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Full employment

Price stability

Full employment and price stability

Unemployment and price instability

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

All of the following are parts of the business cycle except.

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Boom

slump

Recovery

Acceleration

Which policies are expenditure changing policies.

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Currency devaluation and revaluation

Import quotas and tariffs

Monetary and fiscal policy

Wage and price controls

Data is collected with reasonable standard of.

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Numerical method

Feasibility

Accuracy

All of the above

Personal inocme is obtained by adding which items to national income

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Govt. transfer payments

Business transfer payments

Both a and b

None of these

An essential Criterion of Scientific study is.

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Belief

Value

Objectivity

subjectivity

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