Question # 1

Marginal utility is equal to average utility at that time when average utility is.

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Increasing

Maximum

Falling

Minimum

A monopsony is

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The scale supplier of an input

The scale supplier of an output

The sole buyer of some type of input

A unionized industry

A drop in the price of compact disc shifts the demand curve for prerecord tapes leftward from that you know that compact discs and precorded tapes are.

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Inferior goods

Substitutes

Complements

Normal goods

In Islamic economic system following means of gaining wealth are permitted

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smuggling

Hoarding

Gambling

None of these

In a recession a government.

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Is likely to want to increase demand in the economy

Is likely to want to decrease demand in the economy

Is likely to want to stabilize demand in the economy

Is likely to want to increase supply in the economy

Which of the following can the government not use directly to control the economy.

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Pay rates within the privates sector

Pay rates in the public sector

Investment in education

Benefits available for the un employed and sick

Which of the following persons would be considered unemployed.

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a house wife

A person who worked more than 20 hours in a family owned business

A 15 years old looking for summer employment

A recent college graduate looking for her fist job

In the theory of the firm profit maximization is always synonymous with.

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Profitability

Economic profit making

maximization of the sales revenue

None of these

According to classical models the level of employment is determined primarily by

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Interest rates

The level of prices

The level of aggregate supply in the economy

The level of aggregate demand for goods and services

The Schumpeterian growth model is based upon

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Inveslors

Capital formation

entrepreneurs

all of these

Which of the followig does not shift the IS curve .

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An increases in autonomous consumption

An increase in government spending.

A decline in government spending

A fall in theinterest rate

Dynamic multipliers occur when

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the assumption of ceteris paribus is dropped

The economy is not in equilibrium

Consumption is unrelated to disposable income

there is lagged response between consumption and disposable income

A question which requires a solution is.

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Observation

Problem

Data

Experiment

According to time criterion , a person is called unemployed if the works in a week.

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More than 20 hours

More than 45 hours

More than 35 hours

Less than 35 hours

What tow factors should you equate in deciding how many workers to employ.

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The marginal product of labor and the marginal product of capital

The marginal product of labor and the real wage rate

The marginal product of labor and the real interest rate

The marginal product of capital and the real wage rate

A firm's monopolistic position is strengthened by

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low elasticity of demand for its product

High elasticity of demand for its product

Constant elasticity of demand

None of the above

Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by.

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An fall in demand

An increase in supply

Improvements in production technology

An increase in demand

International trade in goods and services tends to

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Increase all domestic costs and prices

Keep all domestic costs and prices at the same level

Lessen the amount of competition facing home manufactures.

Increase the amount of competition facing home manufacturers

The measure used to examine the distribution of wealth at the world level is.

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Gini coefficient

Lorenz curve

Philips curve

None of these

Dynamic gains from trad could result from

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The stimulus of additional investment spending as markets open

Economies of large scale production as markets open

Additional competition made possible by the opening of markets

All of the above

For equilibrium in an open four sector economy

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Actual injections = actual withdrawals

Planned injections = Planned withdrawals

Savings = investment

Government spending = tax revenue

Less Developed countries lend to have

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A high average age

A slow population growth rate

High life expectancy

A low literacy rate

If the intercept of the consumption function is 75, and MPS is 0.10 the value of consumption expenditures at Yd = Rs. 5,000 is

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Rs.4,500

Rs. 575

Rs.500

Rs. 4,575

Through the world government tend o auction quota license to their highest bidder.

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Always

Often

Seldom

Never

Rate of growth of an economy is measured in terms of

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Per capita income

industrial development

Number of people who have been lifted above the poverty line

National income

According to the supply side model a reduction in the tax rate.

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Could reduce the size of any budget deficit

Would have no effect on output

Would have no effect on consumption

None of the above

If the price of automobiles were to decrease substantially the demand curve for public transpiration would most likely.

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shift rightward

Shift leftward

Remain unchanged

Remain unchanged while quantity demanded would change

State monopoly was greatly imposed in the period of.

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Nawaz Sharif

Z.A.Bhutto

Zia ul Haq

None of these

"Money deposited for a term is not left in bank vaults but is loaned out by the banks This means that is dollar on deposit can flow back into the banking system one or more times and that dollar can expand the money supply What cnterminlogy do economists use to refer to the proses described in this clip.

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The multiplier

The money multiplier

Required reserve ratio

Open market operations

A specification of a maximum amount of a foreign produced good that will be allowed to enter the country over a given time period is referred to as a

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Domestic subsidy

Export subsidy

Import quota

Export quota

By financial crowding our economists mean

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What the government borrows cannot be used for private investment

Government borrowing drives up interest rates.

Bank of England controls on commercial bank lending

Credit rationing

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