Question # 1

In the 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

A demand curve that is an equilateral hyperbola is.

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Perfectly elastic

Relatively elastic

Unit elastic

Relatively inelastic

Personal inocme is obtained by adding which items to national income

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Govt. transfer payments

Business transfer payments

Both a and b

None of these

Which of the following index numbers is an important statistical concept in economic theory.

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Per capita income

Cost of living

Gross National product

Maximum Retail price

How much is contributed by agriculture sector to GDP of the country.

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18.5%

21.8%

26.5%

34.5%

When economists say that a per son is economizing they mean that the person is.

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making choices to gain benefits at lowest possible cost

Making a lot of money

Purchasing goods that are generic cheap or of low quality

Learning how to run a business more effecitively

When investment spending is negatively related to the rate of interest, equilibrium income in the goods market.

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Is unrelated to the rate of interest

Is positively related to the rate or interest

Inversely related to the rate of interest

Falls as the rate of interest decreases

The exogenous variable in the income equation C +!+G = y is

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C

I

G

None of these

The nation, that, following currency depreciation, the balance of trade falls for a while before increasing is called a ________ effect.

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Relative price

Elasticity

J- Curve

Pass through

The public sector includes.

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Investors owning companies

Government ownership of assets

Market forces of supply and demand

All trade via barter

The quantity theory of money says that changes in ______ lead to equivalent changes in ______ but have no effect on.

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Prices, wages, output and employment.

Output, prices, employment

Nominal money, the price level output and employment.

Nominal money output prices

In the circular flow diagram firms.

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Receive revenue and supply resources in the resource market

Incur costs and demand resources in the resource market.

Receive revenue and demand resources in the product market.

Incur costs and supply goods and services in the product market.

If demand increase in a market this will usually lead to.

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A higher equilibrium price and output

a lower equilibrium price and higher output

A lower equilibrium price and output.

A higher equilibrium price and lower output

Disposable incomes is equal to.

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National income Minus taxes

Real GDP

National income Minus taxes

National income Minus Taxes plus transfers

the relation of productivity and income is discussed by Nurkse in.

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Vicious circle of poverty

balance growth theory

Unbalance growth theory

Big push theory

Policy of nationalization was adopted in the period of.

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Z.A. Bhutto

Nawaz Sharif

Zia ul Haq

All of them

Skills that embodied in a person are called.

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Human capital

Embodied skills

Physical capital

Experience skills

The marginal Revenue product is.

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Upward sloping due to the law of demand

Upward sloping due to the law of marginal utility

Downward sloping due to the law of diminishing returns.

Downward sloping due to the law of supply

The income elasticity of inferior goods is

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Zero

Positive

Negative

Unitary

One of the difference between a perfectly competitive fir's long run equilibrium and the long run equilibrium of a monopolistically competitive firm is that

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LMS = MR under perfect competition but not under monopolistic competition

SAC = LAC under perfect competition but not under monopolistic competition

SMC = LMC under perfect competition but not under monopolistic competition

LAC = LMC under perfect competition, but not under monopolistic competition

For any square matrix A of order 'n' a +A is.

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Skew symmetric

Non skew symmetric

Symmetric

Non symmetric

There are ______ methods of measuring GDP

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Three

Four

Five

None

The Lorenz curve is used to show relative in equality in the distribution of.

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Wages

Income

Wealth

Profit

Which of the following does not represent a barrier to entry into a market.

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Import quotas

patent laws

Government franchleses

Anti trust legislation

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

According to Marshall the basis of consumer surplus is.

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Law of diminishing marginal utility.

Law of equal marginal utility

Law of proportions

All of the above

In developed countries tariffs on raw materials tend to be.

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Highest of all

Higher than on manufactured goods

Equal to tariffs on manufactured goods

Lower than on manufactured goods

As income increases.

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the average propensity to consume gets nearer in value to the marginal propensity to consume

the average propensity to consume diverges in value from the marginal propensity to consume

the average propensity to consume falls

The averge propensity to consume always approaches 0

Which of the following procedures is included in the process that produces a value for disposable personal income

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subtracting excies and sales taxes

Subtracting nonbusiness interest

Subtracting transfer payment from government.

subtracting income taxes

Quality controlleers at the LMN corporation formulate the null hypothesis that the proportion of defective items in the production line is 10% they reject this hypothesis when they find 12 defective items in 100. If the defective rate is really 10% What type of error did they make.

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Standard error of the mean

A type II error

A type I error

The error probability

Which of the following is not one of the four Ps in marketing.

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Product

Price

Place

Presence

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