Question # 1

What technical terminology do economists use to refer to how much the money will multiply as this process unfolds.

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The multiplier

The money multiplier

Required reserve ratio

Open market operations

Which of the following results in an increase in the value of the dollar.

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Interest rates n the united states decrees, ceteris paribus

Interest rates in foreign countries increase, ceteris paribus

Price level in the United States increases, ceteris paribus

Productivity in the united states increases, ceteris paribus

The nominal interest rate is 5% and the inflation rate is 2% the real interest rate is.

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2%

3%

7%

4%

The theory of overlapping demands predicts that trade in manufactured goods is unimportant for countries with very different.

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Tastes and preferenes

Expectations of future interest rate levels

Per capita income levels

Labor productivities

in 1950s following sector was ignored

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Agriculture sector

industrial sector

import sector

Services sector

Among the institutions and polices that have been created to support developing countries are.

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the World bank

The international Monetary Fund

The Generalized system of Preferences

All of the above

If a small country imposes a tariff on an imported good its terms of trade will

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Improve

Worsen

Not change

any of the above

An increases in the quantity of money supplied shifts the money supply curve to the _____and the LM curve to the

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right ; left

right ; right

left ; left

left ; right

Which of the following rights be a scarce good.

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Love

faith

Self control

All of above

Who among the following was the leader of Monetarism

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Keynes

Milton friedman

A.W.Philip

Mankiv

A monopolistically competitive firm differs from a perfectly competitive firming that unlike the perfectly competitive firm it.

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Faces a downward sloping demand curve

Can change the characteristics of its product.

Can vary the price of its product.

All of the above

The supply curve of a perfectly competitive firm

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Includes the upward sloping portion of the marginal cost

Is equal to entire margin cost

Includes the downward sloping portion of marginal cost

None of these

National Bank of Pakistan is one of the largest commercial bank operating Pakistan it was established.

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1948

1949

1952

1953

Keynes owes the concept of multiplier to

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Pigou

Marshall

R.F.Khan

MARX

The reduction of the inflation rate is called

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Deflation

Disinflation

Inflation

Reflation

Firms are assumed to ____ costs and to _______ profit.

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Incur , desire

Pay ; make

Change ;earn

Minimize ; maximize

Tariff levels in advanced countries tend to be ___ tariff levels in developing countries.

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Higher than

Equal to

Lower than

There is no general pattern

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

Open market operations occur when the government.

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Reduces the interest rate

Buys and sells bonds and securities

Increases taxation

Increases the exchange rate

Which of the following events would lead to an increase in the marginal product lf labor for every equantity labor.

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An increase in the real wage

A decrease in the real wage

A favorable supply shock such as a fall in the price of oil

an adverse supply shock such as a reduced supply of raw materials.

In the money market a condition of excess demand for money can be eliminated by a __________ in aggregate output or a ____ in the interest rate both of which reduce the quantity of money demanded.

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rise ; rise

rise; fall

fall ; rise

fall ; fall

During the 1980 empirical evidence indicates that.

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Poverty re emerged in Pakistan

Good growth brought down poverty in Pakistan

Poverty situation showed no change

None of the above

The are price elasticity of demand is approximately

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0.3

3.3

6.0

0.2

The factor endearment model of international trade was developed by.

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Adam Smith

David Ricardo

John Stuart Mill

Eli Heckscher and Beril Ohlin

According to Keynes, the level of employment is determined by

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Interest rates

The level of prices

The level of aggregate supply in the economy

The level of aggregate demand for goods and services.

Non tariff trade barriers could include all of the following except

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Domestic content laws

Government procurement policies.

Health , safety and environmental standards

Autidumpiing /countervailing duties applied to imports

Statistics is one of those science which are only indicative of a trend, therefore

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It is probabilistic than deterministic

It is deterministic than probabilistic

a definite data collection method is unnecessary

Data sources should be clear

Qara -e- Hasna is normally payable to.

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Needy persons

Poors

Helpless

All of these

The hidden momentum of population growth is caused by

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the demographic transition

Population age structure

the opportunity coast of woman's time

Children contribution to income

Disposable incomes is equal to.

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National income Minus taxes

Real GDP

National income Minus taxes

National income Minus Taxes plus transfers

What does the phrases "there is no such thing as a free lunch'mean"

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Individuals must always pay money for the food the eat.

No restaurant wner will provide food to patrons unless they pay her

Restaurant owners act selfishly

Consumption of any good requires that other goods be given up

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