Question # 1

Macro economics deals with

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Only the decisions made by individuals and their results.

Only the decisions made by businesses and their results.

Mostly large scale decisions made by countries and governments, and their results.

Only the decisions made by individuals but not the results.

A possible use in economies for the circle of the ellipse is to model.

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Production possibility curve

Demand curve

Iosco line

Supply curve

Censuses are the most complete type of.

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Social survey

Survey

Sampling

Data collection

Increases in government spending increase interest rates and aggregate output in the ISLM framework this is a ____ shift of the _____ curve.

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Left ward ; LM

Right ; LM

Left ward ; IS

Left ward ; AD

Since 1960 the rage of economic growth in the country has been

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On the decline continuously

Increasing continuously

increasing occasionally.

Static in real terms

An increase in the wage rate.

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Will usually lead to more people employed

Will decrease total earnings if the demand for labour is wage elastic

Is illegal in a free market

Will cause a shift in the demand for labour

All of the following represent obstacles to LDC development except.

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Resource scarcity

Low level of investment

Low population

Poor infrastructure

Which of the following is a possible government objective as opposed to a policy.

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Lower interest rates

Lower taxation rates

Lower government spending

Lower inflection

The fact that the production function relating output to labor becomes flatter as we move from left to right means that.

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The marginal product of labor is positive

The marginal product of capital is positive

There is diminishing marginal productivity of labor

there is diminishing marginal productivity of capital

In Islamic economic system following means of gaining wealth are permitted

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smuggling

Hoarding

Gambling

None of these

When we know the quantity of a product that buyers wish to purchases at each possible price we know.

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Demand

Supply

excess demand

Excess supply

Economics assumes that people consume goods and services to achieve.

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Status

Prestige

Utility

Self esteem

What is the level of savings for disposable income = Rs.5,000 if dissaving's of 50 occur at a disposable income of Rs.0 and a marginal propensity to save equal to 0.257

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Rs. 1.25

Rs.1.125

Rs.1,200

Rs.1,100

Productivity can grow.

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If capital per hour of labor increases.

If there are no technological advances.

If capital per hour of labor decreases

If real GDP per hour labor decrease and capital per hour of labor increases.

A inverse is defined only if A is a

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Square matrix

Column vector

Orthogonal matrix

Skew symmetric matrix

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 law of demand states that

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As the quantity demanded rises, the price rises

As the price rustiest he quantity demined rises

As the price rises, the quantity demanded falls

As supply rise, the demand rises

Indifference curves shows various combinations of.

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One commodity

Two

Three

All of these

If a country has a bowed out production possibility frontier then production is said to be subject to.

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Constant opportunity costs

Decreasing opportunity costs

First increasing and than decreasing opportunity costs

Increasing opportunity costs

Which of the following statements is true about hypothesis.

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It is an assumption about population value

There are different types of hypothesis

Hypothesis testing is a function of inferential statistics

All of the above

If a maximum price is set below equilibrium there will be.

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A price fall

A price increase

Excess supply

Excess demand

A mathematical expression relating the amount of output produced to quantities of capital and labor utilized is the

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Real interest rate

Production function

Productivity relation

Marginal product

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

An increase in price all other, things unchanged leads to.

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Shift demand outwards

Shift demand inward

A contraction of demand

An extension of demand

Import quotas tend to result in all of the following except.

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Domestic producers of the imported good being harmed

Domestic consumers of the imported good being harmed

Prices increasing in the importing country

Price failing in the exporting country.

Which one of the following would cause demand pull inflation.

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Increases iin production costs

Wage gains in proportion productivity gains

An increase in aggregate demand with shortages of sup ply

Monoposonistic labor markets

A firm's total labor cost when six workers are employed is Rs.580 When seven workers are employed the total labor cost is Rs.700 the Rs. 120 change in total labor cost represents.

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Marginal physical product

Marginal resources cost

Marginal cost

Marginal revenue

Marginal cost is the change is cost the result from a one unit increase in.

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Price

Cost

Output

Revenue

The slope of a horizontal line is.

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One

Zero

Three

two

Following banks were again privatized by Nawaz Sharif

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Allied Bank

Muslim Commerciale bank

None of these

Both a and b

To adjust from gross National Product to Net National Product

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Deduct deprecation

Deduct indirect taxes

Deduct subsidies

Add inflation

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