Question # 1

The Ad, SRAS ,and LRAS curve each show a relationship between which two economic variables.

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The aggregate price level and output

The aggregate price level and the interest rate

Output and unemployment

Output and the interest rate.

Parameter in inferential statistics refers to

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Sample value

Data

Population value

Variable name

Food crops cover about __________ of cropped areas

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75%

85%

15%

35%

An expansionist fiscal policy could include

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Lower interest rates

Increased lending by the banks

An increase in corporation tax

An increase in discretionary government spending

The value of a household's assets minus the value of its liabilities is called.

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Income

Debt

Stock

Wealth

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

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SRAS

AD

LRAS

None of the above

Ordinal measurement approach was not presented by

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Allen

Hicks

Edge worth

Robbins

Which of the following causes M1 demand is decrease.

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A fall in the tax rate

An increase in income

A fall in the interest rate

An increase in the use of credit cards

Which exchange rate system does not require monetary reserves for official exchange rate intervention.

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Floating exchange rates

Pegged exchange rates

Managed floating exchange rates

Dual exchange rates

If all the elements of a matrix of any order are zero, it is called.

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Identity matrix

Null matrix

Zero matrix

Both b and c

Which of the following is not one of the basic economic questions.

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What is produce

Who to produce for

How to produce

How to maximize economic growth

An increase in the money supply other thighs equal shifts the ______ curve to the

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IS ; right

Is ; left

LM ; Left

LM ; right

A monopoly may be self perpetuating because profits may be used for

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research

Cost saving

Technical advance

All of the above

That the division of labor a limited by the size of the market best applies to which explanation of trade

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Factor endowment theory

Product life cycle theory

Economies of scale theory

Over lapping demand theory.

Bank create money by

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Printing it

Issuing debit cards

Accepting chequeens

Lending out part of their deposits

The monetary base in composed of.

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Gold and silver

Currency only

Currency and reserves

Currency and checkable deposits

Compared to the case of perfect competition.

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Monopolist is more likely to

Charge a higher price

Produce a lower quantity of the product

All of the above

The term household production refers to

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Output produced by forcing children to work

Output produced by workers who are telecommuting

Services provided directly to households such as lawn mowing by landscape companies.

Output produced at home

Changes in subjective or objective factors.

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Never affect the consumption function

Always cause downward shifts of the consumption function

Always cause upward shifts of the consumption function

May cause upward or downward shifts of the consumption function

In economics, the term 'scarcity' refers to the fact that

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Everything worthwhile costs money

No society is able to produce enough to fully satisfy the desires of people for goods.

Even in wealthy societies, like the united states, some people are poor

sometimes shortages of product result if its price is set too low.

In any urban are there are people who have had healed wounds

Normal profit occurs when

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Average revenue equals average variable cost

Marginal revenue equals marginal cost

Average revenue equals marginal cost

Average revenue equals average cost

The values are represented by identical symbol or picture's

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Bar charts

Pictograms

Circle charts

graphs

If saving rate is 12.0% , ICOR value is 3% and population Rate is 2.0% then the Growth Rate would be.

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2.0%

3.65

4.0%

6.0%

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

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

In developing countries the co existence of modern and tadeonal method of production in urban and ruler sector is called.

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Dualism

Under employment

Under estimation of resources

None of these

"More reliable results can be obtained through sampling method" because.

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Statistical error is low

Saves time

Cost is low

None of the above

If tastes are identical between countries than comparative advantage is determined by

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Supply conditions only

Demand conditions only

Supply and demand conditions

Can't tell without more information.

The hypothesis that people know the true model of the economy and that they use this model and al available information to form their expectations of the future is the

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Relational expectations hypothesis.

Active expectations hypothesis

Static expectations hypothesis

Adeptive expectations hypothesis

Major drawback to research ears in Pakistan is

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Lack of sufficient number of Universities

Lack of sufficient research guides

Lack of sufficient fund

Lac of scientific training in research

Which of the following would qualify as an aggregate supply shock.

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An unexpected increase in oil prices

Seasonally expected increase in oil prices

An unexpected reduction in consumer confidence

an anticipated tax cut

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