Question # 1

In the economy when a steel producer sells steel to car producer it is regarded as.

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A final good

An intermediate good

an injection

a leakage

Consider the five panels of the figure on the previous page in which panel would the simultaneous imposition of restrictive monetary policy and expansionary fiscal policy cause the largest increase in interest rates.

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Panel a

Panel b

Panel c

Panel d

Where there is an equal increase in net tax revenue and government spending, ceteris paribus.

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(C+I+G) is shifting upward

(C+I+G) is shifting downward

(C+I+G) does not shift

All of these

Currency speculations is_________ if speculators bet against market forces that cause exchange functions, thus moderating such fluclutions.

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Destabilizing

Stabilizing

Inflationary

Deflationary

The funds used for further investment in joint stock company refers to.

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Distributed

Undistributed

Remaining

All of the above

A reduction in government spending causes the equilibrium level of aggregate output to ___________ at any given interest rate and shifts the ________ curve to the.

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fall ;LM; right

fall ;IS; Left

fall ;LM; Left

rise ;LM; Rifht

Laboratory experiments cannot be performed in economics because.

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Of resource scarcity

Economics is a natural science

Of the difficulty of distinguishing between normative and positive statements.

Economics is a social science

Company X sells Rs.75 million dollars of 9.5% first mortgage bonds at par The company's marginal tax rate to 30% The after tax cost of debt is.

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2.85%

3.175

6.68%

7.55

__________ policies attempt to foster industrialization by establishing high barriers to import of foreign goods to promote local production.

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absolute advantage

Comparative advantage

Export led growth

Import substitution

Census is held in Pakistan after every ___ year

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5

10

15

20

When the level of income _______ there will be atendency for the trade balance to improve as imports.

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Increases, increase

falls, fall

Increase, fall

fall , increase

The primary function of a bank is to.

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Control the money supply

Provide notes and coins for trade

Make a profit

Provide a chequeen clearing system.

Social welfare is maximized when a hedonistic calculus regulates all human action according to the interventionist liberal

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John Stuart Mill

Thorstein veblen

Milton Frideman

Jeremy Bentham

if we are told that the two statements y = 3x2 and y = x + 10' are bout true at the same time , they are called.

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Implicit functions

explicit functions

Simultaneous equations

Quadratic equations

Which of the following is a function of money

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Medium of exchange

Store of value

Unit of accounting

All of the above

Union of A with B is same as union of B with A, that is AUB = BUA is termed as

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Associative law of union

Cumulative law of union

Reflective law

All the above

A square matrix a such that A2 = a is called.

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Orthogonal matrix

Skew symmetric matrix

Idempotent matrix

Singular matrix

The warfare effect of a quota depend to a considerable extent upon.

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Who has the quota license

The size of the quota

Elasticities of domestic demand and supply

All of the above

If GNP of Pakistan nees it wil encourage

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Exports goods

imports goods

Both a and b

None

An import function is 100+0.1 Y and exports are exogenous. If income (Y) is 500, and there is a trade deficit of 50, then exports are.

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0

25

75

100

The marginal revenue curve in monopoly

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Equals the demand curve

Is a parallel with the demand curve

Lies below and converges with the demand curve

Lies below and diverges from the demeaned curve

Since 1960, the rate of economic growth in the country has been

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On the decline continuously

Increasing continuously

Increasing occasionally

Static in real terms

In closed economic model aggregate demand is not sensitive to.

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Interest rates

Exchange rates

Price level

Tax policy

A situation in which expansionary in monetary policy has no effect on the economy is known as.

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Macro economic stabilization

A liquidity trap

A depression

Capital flight

The relationship between the exchange rate ad the prices of tradable goods is known as the.

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Purchasing power parity theory

Asset markets theory

Monetary theory

Balance of payments theory

Absence of representatives are special feature of.

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Research

Content analysis

Narrative method

Case study

Research is directed towards the solution of immediate , specific and practical problem is called.

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Basic

Applied

Diagnostic

Descriptive

A natural monopoly has a declining ________ over a large range of output.

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Long run marginal cost

Short run marginal cost

Long run average cost

Long run marginal cost

If an increase in investment leads to a bigger increase in national income this is called the.

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Accelerator

Aggregate demand

Monetarism

Multiplier

Price discrimination occurs when

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A commodity has different elasticity in different markets

Same elasticity in different markets

Unitary elasticity different markets

Noe of these

All currencies other than the domestic currency of a given country are referred to as.

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Reserve currencies

Neal monies

Foreign exchange

Hard currency

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