Question # 1

If the income elasticity of demand is +4

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The good is an inferior good

The good is an inelastic normal good

The good is an elastic normal good

the good is an elastic inferior good

The impact and incidence of sales tax is

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On the consumer

On the seller

On the producer

None of these

The least common type of transaction in the foreign exchanges is a.

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Forward transaction

Spot transaction

Swap transaction

None of the above

During the last eight years the per capita income in Pakistan has been

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Increasing substantially because of decline in population growth

Decreasing

increasing only marginally

Constant

For perfect competition ot work there must be

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Many buyers and sellers

A standard product

Free entry and exit

All of the above

Whose opinions have revolutionized the scope of macro economics.

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Adam Smith

J.B. Say

J.M. Keynes

All of the above

If the Federal reserve conducts open market ________ the money supply _______ shifting the LM curve to the right.

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Purchases ; decreases

sales ; increases

purchases ; increases

sales ; decreases

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

Who among the following is concerned with deep acology.

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Arne Naes

Warwick fox

Kant

None of these

An expansionist fiscal policy could include

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Lower interest rates

Increased lending by the banks

An increase in corporation tax

An increase in discretionary government spending

The term that has no ecological perspective is.

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Growth orientation

Web of life

Relationships

Future generation

Price equal to.

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Total revenue -quantity

Total revenue/quantity sold

total quantity sold * quantity sold

Total revenue/total cost

An increase in autonomous consumer expenditure causes the equilibrium levelof aggregate output to _______ at any given interest rate and shifts the ____ curve to the

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rise ; LM ;right

rise ; IS ; right

fall ; LM, Left

rise ; IS ; Left

The marginal rate of substitution for two goods can be obtained from

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The slope of the demand curve

The slope of the indifference curve

The ration of first derivative of the total utility functions

B and D both

Prohibiting a trade between two people

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Will promote economic efficiency

Probably Will inhibit productive efficiency

Might be necessary if resources are to be put to their most highly valued uses

Will have no effect on other persons.

A group of modern economists who believe that price and wage rigidities do not provide the only rationale for macroeconomic policy activism are called.

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New Keynesians

Keynesians

Monetarists

The Classical shool

To prevent the external value of the currency from failing the government might

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Reduce interest rates

Sell its own currency

Buy its own currency with foreign reserves

Increase its own spending

In an industry with a falling long term supply curve, which of the following is true.

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Industry unit cost are constant

Industry unit costs are decreasing

Industry unit costs are increasing

Industry unit costs cannot be determined

A mixed economy

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Has supply but not demand

Has demand but not supply

Has supply and demant

Has market forces and government intervention

The diamond water paradox can be explained by suggesting that the price of a product is determined by.

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Consumer incomes

Its marginal utility

Consumer surplus

Diminishing marginal utility

Which of the following assets is most liquid.

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Shares of stock in IBM

Land

Gold

Currency

Which of the following strategies have developing countries not used to deal with the problem of unstable export markets.

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Multilateral contracts

Production and export controls

Buffer stock arrangements

Tariff rate quotes

In pure monopoly there is.

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A lot of firms

Two firms

A single firm

Many firms

In long run a reduction in labor supply would cause output to __ and the aggregate price level to.

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fall ; rise

fall ; fall

rise ; fall

rise ; rise

In a fixed exchange rate regime, the central bank will intervene by __ pounds to ______ the exchange rate.

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Selling, increase

buying , increase

selling, reduce

both b and c

In cartels.

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Firms complete against each other

Price wars are common

Firms use price to win market share from competitors

Firms collude

Total revenue equals

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Price Plus quantity

Price multiplied by quantity sold

Price divided by the quantity sold

Price minus quantity sold

Which of the following concepts represents the extra revenue a firm neceives from the services of an additional unit of a factor of production.

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Total revenue

Marginal physical product

Marginal revenues product

Marginal revenue

The function y = 2x + 1 and x = 1/2 y - 1/2 are said to be.

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Non linear functions

Inverse functions

Step functions

All the above

Indirect taxes are

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Direct taxes - subsidies

Subsidies

Sales taxes

Income taxes

Land will be allocated between competing uses so that.

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Housing gets priority

Industry gets priority

Faming gets priority

The equilibrium rental rate equilibrium total demand with supply

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