Question # 1

The concept of "Interdependence of markets" can refer to the interdependence between.

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Two or more factor markets

Goods and factor markets

Goods markets

All of the above

The arc elasticity formula is used to estimate elasticity when

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The product is thought to be inelastic

The product is thought to be elastic

The demand function is known

There are two observations of price and quantity

The long run aggregate supply curve.

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Is vertical

Slopes upward

Is horizontal

Slopes downward

Usury is prohibited in

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Islam only

Sikhism only

Jewism

Both a and b

Due to indivisibilities in demand and infrastructure economic development can be achieved.

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Balance growth according to its advocates

Unbalanced growth according to its advocates

Big pus

None of these

The largest lenders to less developed countries are

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Western government

Multi lateral agencies

Private banks

Invidia investors who purchase government bonds

The intersection of the IS and LM curves captures.

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The equilibrium of the demand and supply sides of the economy

the equivalence of monetary and fiscal policy

Joint equilibrium in the goods and money markets

All of the above

The percentage change in the quantity demanded in response to a percentage change in the price is known as the.

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slope of the demand curve

Excess demand

Price elasticity of demand

All of the above

Which market adjusts the quickest in response to shocks to the economy.

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The asset market

The labor market

The goods market

In the macro economy

International trade in good sand services is sometimes used as a substitute for all of the following except.

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Internationals movement of capital

International movement of labor

International movements of technology

Domestic production of different goods and services.

The central economic problem in an economy refers to.

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The prevalence of unemployment

To allocate scarce resources between competing uses.

Consumers having less money than they would like

ensure that production costs are converted by sales revenue.

Adding up the quantities demanded of a good by different people facing the same price gives us the.

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Supply curve

Market demand curve

Demand curve

Market supply curve

Which of the following does not represent a barrier to entry into a market.

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Import quotas

patent laws

Government franchleses

Anti trust legislation

By controlling the monetary base economists mean

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Controlling the money multiplier

Restricting the amount of cash in circulation

Not allowing commercial banks to issue notes and coins

making banks keep a certain % of their assets as M0

Qualitative research focuses primarily on the meaning of.

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Subjective attributes of individuals groups

Objective attributes of individuals or groups

Facts of Indi duals or groups

Descriptive attributes of individuals or groups

A monopolist who is charging high price operates on.

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inelastic part of demand curve

Elastic demand of part curve

Ignore elasticity

More elastic demand of part curve

Keynesian economists think general equilibrium is not attained quickly because.

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The real interest rate adjusts slowly

The level of output adjusts slowly

The real wage rate adjusts slowly

The price level adjusts quickly

A Rs.10 increase in autonomous investment spending shifts IS

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Rightward by Rs.10

Leftward Rs.10

Rightward by Ke (Rs.10)

Leftward by Ke (Rs.10)

An increase in aggregate demand will have most effect on prices if.

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Aggregate supply is price inelastic

Aggregate supply is price elastic

Aggregate supply has a unitary price elasticity

Aggregate demand is price inelastic

An autonomous rise in __________ note causes by a change in the price level aggregate output of the interest shifts the _________ curve to the

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Net exports LM right

Net exports LM left

Money demand IS right

Money demand LM left

The precautionary demand for money is

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An idle balance

An active balance

Directly related to interest rates

Inversely related to income

The demand curve for labor for a monopolist when other inputs are fixed is equal to its

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Marginal value product curve

Marginal revenue product curve

Horizontal summation of the firms demand curve at different output prices

Marginal physical product curve

AB = BA = 1 , then B is said to

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Ad joint of matrix of A

Inverse matrix of A

Determinant of A

Cofactor of a

The agricultural price support program is an example of.

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A price celling

A price floor

Equilibrium pricing

None of these

The long run Philips curve is _________ at the ______

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Horizontal natural rate of inflation

Horizontal , natural rate of unemployment

Vertical , natural rte of inflation

Vertical , equilibrium rate of unemployment.

During the 1980's 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

If each element of a raw or column is a sum of two elements, the determinant can be expressed as the

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Sun of two determinants

Difference of two determinants

Multiplication of two determinants

Division of two determinants

An optimal tariff is one which reduces imports to the level at which ___ equals

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imports , exports

The balance of trade, zero

The demand for currency, the supply of currency

Social marginal cost social marginal benefit

Alfred Marshall formalized and then popularized the analytical technique known as

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General equilibrium analysis

Felicific calculus

Partial equilibrium analysis

Differential equations

If a firm triples all inputs and output triples as well the firm is subject to

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Constant returns to scale

Increasing returns to scale

Economies of scale

Both b and c

Union of A and the universal set is

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A

A'

Universal set

None of these

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