Question # 1

The theory of ___________ suggests that government can assist domestic companies in capturing economic profits from foreign competitors

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International dumping

Countervailing duties

Strategic trade policy

Export promotion policy

The statement that marginal cost = marginal revenue leads to profit maximization of loss minimization is true.

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All the time

Only in the long run

Only if "marginal cost is rising at the point of equality.

Only if average total cost is falling at the point of equality

The neoclassical theory of growth identities the steady state rate of growth as the _________ just sufficient to keep _______ constant while labour grows.

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Saving investment

Capital per person productivity

Labour growth , output

Investment capital per person

The marginal propensity to consume in a less Developed Country is likely to be.

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_{Less than 0}

Nearly 0

High

Low

Money and income are.

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Mirror image of each other

Two quite different concepts

Both measured as a per annum flow

Two ways of looking at the same thing.

The origin of the idea of a trae off between inflation and unemployment was a 1958 article by

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A.W Philips

Edmund phelps

Milton Friedman

Robert Gordon

If matrix A is of m x n dimension, then A will be

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n x m dimension

m x n dimension

n x p dimension

m x m dimension

"Rising productivity does not in itself spell the end of inflation. With enough______ it would still be possible to whip prices into a froth the blank is best filled with.

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Income growth

Unemployment

Money growth

Taxes

The institutional framework developed in 1974 to promote trade liberalization is known as.

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WTO

GATT

IMF

World bank

Country A 's GNP is increasing by 3% a year in contrast to its population growth of 2.4% The rate of growth of per capita GNP is.

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3%

0.85

0.6%

2.4%

Capital, as economists use the term.

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Is the money the firm spends to hire resources

Is money the firm raises from selling stock

Refers to the process by which resources are transformed into useful forms

Refers to things that have already been produced that are in turn used to produce other goods and services.

Should international transpiration costs decrease, the effect on international trade would include a.

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Increase in the volume of trade

smaller gain from trade

Decline in the income of home producers

Decrease in the level of specialization production.

According to Keynesians the primary source of business cycle fluctuation is.

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Aggregate demand shocks

Productivity shocks

Oil price shocks

Consumer confidence shocks

In monopolistic competition firm sell

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Same goods

Differential goods

Inferior goods

Superior goods

A proposition which can be putto test to determine validity

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Hypothesis

Operational definition

Data collection tool

Research design

If GNP of Pakistan nees it wil encourage

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Exports goods

imports goods

Both a and b

None

National Income account of Pakistan have registered GDP & GNP as.

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GDP = GNP

GDP < GNP

GDP > GNP

GDP / GNP

The supply of foreign currency tends to be

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Upward sloping

Down ward sloping

Vertical

Any of the above

In Islamic economic system business is allowed in the field of.

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Halal goods only

beneficial goods

Consumer goods

All of these

The value of a producer's output minus the value of the inputs if purchases from other producers is called the producer's

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Surplus

Profit

Gross product

Value added

An economy that has achieved full production has achieved

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Both allocative and productive efficiency

Allocative but not productive efficiency

Productive but not allocative efficiency

Neither allocative nor productive efficiency

Extensive subsistence agriculture is found in

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Warm

Moist

Low latitude

All of these

The law of diminishing returns states that as more of a variable factor is added to a certain amount of a fixed factor beyond some point.

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Total Physical product begins to fall

The marginal physical product rises

The marginal physical product falls

The average physical product falls.

Current account deficits are offset by

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Merchandise trade deficits

Merchandise trade surpluses

Capital /financial account surpluses

Capital /financial account deficits

Collection of well defined distinct objects thought of as a whole is called

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Union

Derivative

Set

Integral

Which of the following changes shifts the long run aggregate supply curve to the right.

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A demographic change that increases the labor supply

A decrease in the demand for labor

An increase in consumer confidence

A decrease in taxes

The multiplier is calculated as.

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1(1-MPC)

1/MPS

1/MPC

a or b

In the balance of payments, travel and tourism are included in the category of

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unilateral transfers

Capital account

Merchandise account

Services account

In order to constitute an oligopolistic market structure.

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There must be a few firms in a given relevant market

There must be a few firms selling in a national market

There must be more than 20 firms selling in the international market

There must be fewer than 15 firm is any given market

As the opportunity cost of a good falls, ceteris paribus the substitution effect implies that people buy

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Less of the good and more of its substitutes

More of that good and less of its substitutes

Less of that good and less of its substitutes

More of that good and more of its substitutes

Monopoly market is characteristics by

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A large number of sellers

Only one seller

Thousand of seller

All of these

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