Question # 1

A mathematical expression relating the amount of output produced to quantities of capital and labor utilized is the

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Real interest rate

Production function

Productivity relation

Marginal product

Indifference curve has following characteristics except.

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Convex to origin

Intersect each other

Not necessary to be parallel

None of these

Nationalism, self sufficiency, and imperial power were central concerns of.

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French physiocrats

Thomas Malthus

Mercantilists

Adam Smith

If a price increase of good A increases the quantity demanded of good B, then good B is a.

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substitute good

Complementary good

Bargain

Interior good

If the estimated values of Y and Py in 1987 are Rs. 20,000 and Rs. 6 respectively, what is the maximum price of X.

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Rs.420

Rs.240

Rs.300

Rs.360

A set of systematically related propositions specifying causal relationships among variables.

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Research

Concept

Theory

Hypothesis

At the intersection of AD and AS equilibrium is achieved in.

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The goods market

The money market

The labour market

All of the above

The current account includes

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The value of trade in merchandise

Services

Unilateral transfers

All of the above

(A+B) = (B+A) this law of matrices is known as.

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Cumulative law

Associative law

Distributive law

Identity law

Most tariffs have

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Only revenue effects

Only protective effects

Both protective ad revenue effects

Neither protective or revenue effects

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

If the price of orange juice rises 10% and as a result the quantity demanded falls by 8% the price elastic of demand for orange juice is.

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-1.25

Inelastic

Both a and b

Neither A nor B above

An increase in oil prices, such as the oil shocks in the 70 s, lead to _______ there by causing _____

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A movement along the AS curve cost push inflation

A leftward shift int he AS curve demand pull inflation.

A right ward shift in the AS Curve cost push inflation

a left ward shift in the AS curve cost push inflation

Policy of nationalization was adopted in the period of.

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Z.A. Bhutto

Nawaz Sharif

Zia ul Haq

All of them

The effect of the most favored nation clause is to.

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Eliminate all tariffs between countries

Increase all tariff rates between countries.

Maintain a nondiscriminatory structure of tariffs

Maintain a discriminatory structure of tariffs

Sample implies

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Survey representation of larger whole

Smaller representation of larger whole

Population representation of a larger whole

Census representation of a larger whole

To reduce the supply of money the government could.

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Reduce interest rates

Buy back government bonds

Sell government bonds

Encourage banks to lend

What is the reason for the necessity of statistics in the field of social sciences.

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Simplification and quantitative approach

Knowledge acquisition and description

Easiness and analytical

all of the above

A set containing all the elements of the universal set except those of set A is called.

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Complement of set A

Complement of universal set

Union of A and universals set

Universal set itself

Who says theory as a integrated body of definitions, assomptions

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Amold Rose

P. Young

Kerlinger

Karl Peansion

A determinant compose of all the second order partial derivatives, with the second order direct partials on the principal diagonal and the second order cross partials off the principal diagonal and which is used to second order condition of optimization is called.

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Jacobian determinant

Hessian determinant

Discriminant

None of these

If tastes are identical between countries than comparative advantage is determined by

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Supply conditions only

Demand conditions only

Supply and demand conditions

Can't tell without more information.

The price mechanism does not act as a

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Signal

Incentive

Rationing device

Indicator of income

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 yield curve shows

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The yields on stocks of different maturities

The interest rates on bonds of different maturities.

The yields on stocks with differing default risk

The yields on bonds with differing default risk

An increase labor supply would cause the IS curve to.

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Shift up and to the right

Shift down and to the left

Remain unchanged

Shift up and to the right only if people face borrowing constraints

In the expenditure approach to GDP which of the following would be excluded from measurement of GDP.

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Government payments for goods produced by foreign firms

Government payments for goods produced by firms owned by state of local governemnt

Government payments for welfare

All government payments are included in GDP

The firm under monopolistic competition is likely to produce less and set a higher price than under perfect competition because.

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The firm faces decreasing returns to scale

The firm faces increasing costs

The firm must incur selling expenses including advertising.

The firm faces a downward sloping demand curve

A supply curve that starts at the origin has

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A price elasticity of supply greater than one

A price elasticity of supply equal to one

A price elasticity of supply less than one

A positive price elasticity of supply

Exchange rates that are determined by the unregulated forces of supply and demand are.

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Floating exchange rates

Pegged exchange rates

Fixed exchange rate

Managed exchange rates

The largest trading partner of Pakistan is

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Italy

UK

USA

None of these

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