Question # 1

A price cross elasticity of 0.81 between X and Y shows that.

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They are complementary goods

They are competitive substitutes

They are not substitutes

a reduction in the price of one would cause an increase in the consumption of the other.

the_____________ analysis considers the ability of domestic and foreign prices to adjust to devaluation in the short run.

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Pass through

Absorption

Adjustment mechanism

currency contract period

Supply is likely to be more price elastic.

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In the short run rather than the long run

If factors of production are relatively immobile between industries.

If there are very few producers

If it is easy to expand output

Pakistan's public debt a

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LarGer than GNP

Approximately equal to GNP

Small than GNP

Smaller than our exports

A single value that represent the average characteristics of tis frequency distribution.

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quarterlies

Grouped data

Central tendency

Range

Except for taxes to offset ___ taxes are.

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Imperfect competition , popular

Extremality's, distortionary

Inequality, a first best option

Poor health, unnecessary

Shifting cultivation is found in

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Tropical zone

Sub tropical zone

Both a and b

None of these

In monopolistic competition firms profit maximize where

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Marginal revenue = average revenue

Marginal revenue= Marginal cost

Marginal revenue= Average cost

Marginal revenue = Total cost

"Reducing inflation is a more important objective than economic growth" is an example of.

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Normative economics

Positive economics

Objective economics

Reality economics

Economic growth can be measured by

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The CPI

The CBI

GDP

MPC

in the keynesian model in the short run the amount of employment is determined by the effective labor demand curve and the level of.

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Prices

Output

The real interest rate

The supply of labor

A current account deficit means that a country may.

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Reduce its stock of foreign assets

Increases its stock of foreign assets

Increases its savings

Increases its foreign currency reserves.

a demand curve can shift because of changing.

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Incomes

Prices of related goods

Testes

All of the above

Companies in the private sector are owned by

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The government

Shareholders

Employees

The community

Friend man's theory of consumption focuses on

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Past income

Current income

Disposable income

Permanent income

Women and non whiles on average receive lower comes than white men because.

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They tend to work in relatively unskilled jobs

Educational disadvantage

Firms are reluctant to invest in training

All of the above

A primary reason why nations conduct international trade is because.

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some nations prefer to produce one thing while others produce another.

Resources are not equally distributed to all trading nations

Trade enhances opportunities to accumulate profits

Interest rates are not identical in all trading nations

in the Keynesian cross diagram, a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift _____the equilibrium level of aggregate output to ______l and the IS curve Curve to shift to the.

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rise ; left

rise ; right

fall ; left

fall ; right

Given the data above, the empirical equation for the IS curve is.

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Y = 275 + 10 i

Y = 225 + 50 i

Y = 250 - 10 i

Y = 275 - 501

If matrix A is matrix of order n x m and B is another matrix of order m x n, then BA will be the matrix of order.

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n x m

m x n

n x n

m x m

The first step in formulating a problem is.

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Statement of the prblem

Gathering of data

Measurement

Survey

A rise in the real exchange rate will __ the competitiveness of the domestic economy.

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Increase

reduce

do nothing do

all of these

A person who is made redundant because of the contraction of an industry is a victim of.

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Frictional unemployment

Demand deficient unemployment

Classical unemployment

Structural unemployment

What major advantage of monetary policy over fiscal policy does this clipping underline.

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Monetary policy is more effective

Monetary policy is lss discriminatory

Monetary policy can influence interest rates

Monetary policy can be undertaken more quickly

a possible use in encomia's for the circle or the ellipse is to model.

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Production possibility curve

Demand cuve

Isocost liine

Supply curve

Which kind economics deals with issues such as unemployment inflation, and economic growth.

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Macro economics

Micro economics

Growth economics

Political economics

If the central bank buys financial securities in the open market to increase the monetary base, this is an example of.

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Lender of last resort

Financial intermediation

Open market operations

Financial regulation.

Effective branding will tend to make

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Demand mover price inelastic

Supply more price inelastic

Demand more income elastic

Supply more income elastic

The income elasticity of inferior goods is

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Zero

Positive

Negative

Unitary

Which of the following statements is true about platykurtic curve as compared to normal curve.

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Flatter

Broader central position

Lower tails

All of the above

Your checking account is

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An asset for you and a liability for your bank

A liability for you and an asset for your bank

An asset for both you and your bank

A liability for both you and your bank

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