Question # 1

In a model in which there is no government new investment capital replacement or international trade the market value of final output equals.

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Aggregate consumption

The sum of the receipts of economic resources

The sum of wages rent interest and profit

All of the above

Cross -elasticity following commodities is very high

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Compliments

Normal

Goods substitutes

Good compliments

Based on the data above , the increase in potential MI would be

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Rs.50 billion

Rs.300 billion

Rs.60 billion

Rs.100 billion

A decline in the value of the rupee makes Pakistan goods cheaper relative to foreign goods, resulting in a _________ in net exports and a ________shifts of the IS curve.

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fall ; leftward

rise ; leftward

fall ; rightward

rise ; rightward

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

Which refers to a scale with a set of points which describes varying degrees of the dimensions of an attribute observed.

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Rating scale

Score card

Check list

Observation

In the period of Zia ul Haq the nationalized enterprises went on.

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Loss

Profit

Developing

None of these

Which of the following does not apply to pareto efficiency.

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Consumptive efficiency

Productional efficiency

Allocative efficiency

Equity

In which of the following situations will an increase in the money supply have no effect upon equilibrium income.

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LM is steeply sloped and IS is relatively flat

LM is vertical and IS si steeply sloped

LM is steeply sloped and IS is vertical

LM is relatively flat as is IS

The multiplier tells us how much __________ chagnes after a shift in.

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Consumption, income

Investment , output

Savings, investment

output, aggregate demand

The arrangement were goods imported from trading partners in the developing world are subject to lower tariff rates than good from other countries is referred to as.

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Normal trade relation status.

Most favored nation status

Generalized system of Preferences.

Offshore assembly provisions

The determinant of quadratic form is called.

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Jacobian determinant

Hessian determinant

Discriminant

None of these

There are three fundamental questions every society must answer Which of the following is one of these questions.

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What goods and services are to be produced.

How are the good and services to be produced.

Who will get the goods and services what are produced.

All of the above

Economic growth rate of a country is determined by the

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Capital formation rate

Employment rate

Saving rate

Investment rate

Scarcity means that

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We cannot have everything that we might want

We have to make choices between the things we desire.

There are costs to just about any activity we undertake

We must give up some thing in order to obtain other things.

All of the above are correct

Adam smith includes in the model of economic growth following factors of production.

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Labor only

Capital only

Labor and capital

Labor capital and land

Skills that can be transferred to other employers are called.

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General skills

Specific skills

Non pecuniary skills

All of the above

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

Which of the following is the second law of gossen.

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Law of equal marginal utility.

Law of equi product

Theory of indifference curve

Law of diminishing marginal utility.

Domestic borrowing includes the government borrowing through

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National saving center

Commercial banks

State Bank

All of these

Holding all other factors constant consumers demand more of a good the

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Higher its price

Lower its price

Steeper the downward slope of the demand curve

Steeper the upward slope of the demand curve

The short run supply curve for a competitive industry is derived by.

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Horizontally summing the marginal cost curves for each firm in the industry

Horizontally summing the average variable cost curves for each firming the industry

Vertically summing the marginal cost curves for each firm in the industry

None of the above

Productive capacity of agricultural sector due to green revolution

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Remain same

Not effectectd

Increased

Decreased

A decrease in the quantity of money supplied shifts the money supply curve to the________ and the equilibrium interest rate

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right ; fall

right ; rises

left ; falls

left ; rises

Extension and contraction of demand mean

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Movement on the same demand curve

Movement to high demand curve

Movement to lower demand curve

Movement to another demand curve

A supply schedule shows the relations between the quantity supplied of a commodity over a given time and.

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Factor prices

Technology

Both a and b

The price of the commodity

The set of all elements belonging to A but not to B is.

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B - A

A - B

A'

B'

Quantitative characteristics includes.

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Beauty

Emotion

Intelligence

Data

Which skills are most likely to be paid for by the employer.

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General skills

Specific skills

Educational skills

None of these

The main source of interest profits for banks is.

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Checking account fees

Loans

Government securities

Savigng accounts

If Federal reserve conducts open market sales, the money supply ___ shifting the LM curve to the_____

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decreases ; right

decreases ; left

Increases ; right

Increase ; left

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