Question # 1

Negative taxation refers to.

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Tax rebate

Subsidies

Tax evasion

Tax avoidance

Which of the following is an example of government policy that could reduce inflation.

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Increasing bank lending

increasing import duties

Reducing government expenditure

Reducing direct taxation

Drawing conclusion from the data collected is called.

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Analysis

Organization

Tabulation

Interpretation

A decline in the value of the rupee makes Pakistan goods cheaper relative to foreign goods, resulting in a _________ in net exports and a ________shifts of the IS curve.

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fall ; leftward

rise ; leftward

fall ; rightward

rise ; rightward

Law of variable proportion sis applicable in.

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Short run

Long run

Anytime

Fore ever

Union of A with B is same as union of B with A, that is AUB = BUA is termed as

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Associative law of union

Cumulative law of union

Reflective law

All the above

If the price of factor A is Rs.8.00 per hour, and its marginal product is 10 units, and the price of factor B is Rs. 5.00 and its marginal product is 9, is the producer is likely to.

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Hire more of A and less of B

Hire more of B and less of A

Start paying factor A more

Try to use factor B more productively

The expected real interest rate minus expected inflation rate.

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Nominal interest rate minus inflation rate

Nominal interest rate minus expected inflation rate.

Expected nominal interest rate minus inflation rate

Nominal interest rate plus expected inflation rate.

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

Sales taxes are generally considered to be.

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Proportional taxes

Regressive taxes

Progressive taxes

Indirect taxes

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.

Which kind economics deals with issues such as unemployment inflation, and economic growth.

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Macro economics

Micro economics

Growth economics

Political economics

If nominal GNP were Rs.1000 ballooning 1976 and Rs.2200 billion in 1986, and the implicit GNP deflator was. 1.2 in 1976 and 1.6 in 1986 concluded that .

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Real GNP increased by approximately Rs. 542 billion from 1976 to 1986

The price level fell from 1976 to 1986

Real GNP increased by 35%

Nominal GNP increased by 80%

The effect of the most favored nation clause is to.

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Eliminate all tariffs between countries

Increase all tariff rates between countries.

Maintain a nondiscriminatory structure of tariffs

Maintain a discriminatory structure of tariffs

The arrangement were goods imported from trading partners in the developing world are subject to lower tariff rates than good from other countries is referred to as.

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Normal trade relation status.

Most favored nation status

Generalized system of Preferences.

Offshore assembly provisions

import substitution is the replacement of ________ by domestic production under the protection of.

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exports, subsidies

Exports, patents

imports, high tariffs or import quotes

Imports, subsidies

Under land reforms celling of land was set as 150 acres of Un irrigated land by

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Zial ul Haq

Z.A.Bhutto

Nawaz Sharif

None of these

The cliche that "The punishment should fit the crime " originated in the writings of.

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Plato

Thomas Aquinas

Jeremy Benithm

David hume

An increase in aggregate demand will have most effect on prices if.

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Aggregate supply is price inelastic

Aggregate supply is price elastic

Aggregate supply has a unitary price elasticity

Aggregate demand is price inelastic

A reduction in interest rates, causes an increases in the monetary base that result in an_____ in the availability of consumer credit and a _ in the cost of consumer credit.

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Reduction, increases

reduction,reduction

increase, reduction

increases, increases

The funds used for further investment in joint stock company refers to.

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Distributed

Undistributed

Remaining

All of the above

A monopoly market.

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Generally falls to maximize total economic well being.

Always maximizes total economic well being.

always minimizes consumers surplus

Generally falls to maximum produce surplus

Oligopoly is a market structure in which

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Many firms each produce a slightly differentiated product

One firm produces as unique product

A small number of firms compete

Many firms produce an identical product

A change in autonomous spending is represented by.

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A movement along a spending line

A shift of a spending line

A change in a behavioral coefficient.

None of these

The productivity curve

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Is given by the labor productively

Shows the change in real GDP per hour of labor as the amount of capital per hour labor changes

Shows the change in technology

Is given by the equation Y = F ( L,K, T)

If a firm not operating at the output necessary to achieve al scale economies it has not achieved its.

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Efficient scale

Average efficient scale

Maximum efficient scale

Minimum efficient scale

Application of Modern technology to increase the yield is due to

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Subsistence farming

Mechanization

Green revolution

None of these

In monopolistic competition if firms are making abnormal profit other firms will enter and

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The marginal cost will shift outwards

the demand curve will shift inwards

The average cost will shift downwards

The average variable cost will increase

The length of a business cycle would be measured from

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Peak t trough

Trough to peak

Peak to Peak

The slump to the expansion

"No two elements of a set are identical" this statements is.

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Always true

Sometimes true

Not true

All of the above is possible

The effect of the most favored nation clause is to

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Eliminate at tariffs between countries.

Increase all tariff rates between countries

Maintain a nondiscriminatory structure of tariffs

Marlein a discriminatory structure of tariffs.

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