Question # 1

To maximize revenue, an excise tax should be imposed on a product

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That has a highly elastic demand curve

Such as St. Joseph's children's' aspirin.

Such as salt

such as Toyota automobiles

Cross -elasticity following commodities is very high

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Compliments

Normal

Goods substitutes

Good compliments

When the price of foreign currency the exchange is above the equilibrium level.

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an excess supply of that currency exists in the foreign exchange market.

an excess demand for that currency exists in the foreign exchange market

The supply of foreign exchange shifts outward to the right

the supply of foreign exchange shifts backward to the left

Perfect competition implies

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Homogeneous goods

Inferior goods

Superiors goods

Differential goods

Demand for primary products is likely to be

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Very sensitive to price

Price elastic

Unit elastic

Income inelastic

An expenditure increasing policy would consist of an increase in

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Import tariffs

Import quotas

Governmental taxes

The money supply

To maximize sales revenue a firm should produce where

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Marginal cost is zero

Marginal revenue is maximized

Marginal revenue is zero

Marginal revenue equals marginal cost

A demand curve is not related to

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The time period

The price of the commodity

The price of substitution

Any of above

Tax and rulers duty and terms of trade are discussed in.

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Kitab ul Anwal

ammali

Kitab Ul Asar

Kitab ul Khiraj

Following is the major source for a country to meet the deficiency of capital

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Domestic saving

Foreign aid

Domestic barrowing

All of these

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

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Frictional unemployment

structural unemployment

Cyclical unemployment

Voluntary unemployment

Forced labor is one of the greatest injustice in the world according to.

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Imam Abu Yousaf

Imam Abu Qasim

Khalil Jabran

Ibn e Khaldun

If the price elasticity of demand for a non giffen good is inelastic are decreased in its price result in.

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Increase in demand

Decrease in demand

Increase in total revenue

Decrease in total revenue

When the demand curve is vertical its shows that the demand is.

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Less elastic

Very high elastic

Elastic

Perfectly inelastic

The earliest statement of the principle of comparative advantage is associated with.

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Adam Smith

David Ricardo

Eli Heckshcer

Berti Ohlin

Which of the following measures is the best measure of money as a medium of exchange.

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M1

M2

M3

None of the above

The world narrative derived from Latin verb

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Quantitative research

Qualitative research

Descriptive research

Experimental

The investment demand curve shifts right ward if

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The real interest rate falls

Savers increase their thriftiness

The expected profit rate increases.

The economy moves into a recession

If the price of an apple increases.

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Its opportunity cost decreases

Its opportunity cost increases

The substitution effect does not occur

The income effect does not occur

If the demand curve for a good is horizontal and the price is positive then a leftward shift of the supply curve results in.

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a price of zero

An increase in price

A decrease in price

No change in price

If firms join together to set prices and quantities this is known as what.

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Interaction

Conglomerate

Collusion

Integration

Fiscal policy is weak under floating exchange rates as fiscal expansion.

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Crowds out imports

Crowds out public consumption

Crowds out exports

Reduces the budget deficit

In the short term a firm will produce provided the revenue

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Covers fixed costs

Covers variable costs

Covers total costs

Covers revenue

The idea that the natural rate of unemployment rises when the acual rate of unemployment rise is known s.

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Stabilization

Insider outsider theory

Hysteresis

an efficiency wage model

The oldest basis of existence all over the world was.

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Fishing

Farming

Both a and b

None of these

The long run aggregate supply curve

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Is vertical

slopes upward

Is horizontal

Slopes downward

Increasing the government budget deficit.

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Increases output in the long run

Decreases output in the short run

Decreases output in the long run.

Decreases the interest rate in the medium run.

Union of A with A, that is A U A.

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Complement of A

A itself

Con not be determined

None of these

The movement to free international trade is most likely to generate short term unemployment in which industries'.

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Industries in which there are neither imports nor exports

Import competing industries.

Industries that sell to domestic and foreign buyers

Industries that sell to only foreign buyers

Trade based on comparative advantage assures that.

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Only the strongest suvrive

Some people are rich and others are poor

Each item is produced using the least amount of time needed to produce it

Each item is produced at as low a cost possible in terms of other things given up

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