Question # 1

As long as the principle of diminishing marginal utility is operating any increased consumption of good.

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Lowers total utility

Produces negative total utility

Lower marginal utility and therefore total utility

Lowers marginal utility, but may raise total utility.

When the Central Bank initiates actions which will lead to an increase in the supply of money IS -LM models tell us to expect that.

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The interest rate will rise

The interest rate will decline

The price level will not change

Investment will decline

That the division of labor is limited by the size of the market best applies to which explanation of trade.

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Factor endowment theory

Product life cycle theory

Economies of scale theory

Overlapping demand theory

Unlimited supply of labor means in developing countries that part of man power which even if is withdrawn from the process of production there will be no fallen output is the theory of.

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Fei Rani

M.PP. Todaro

Lewis

Leibstein

All of the following are types of imperfect competition except

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Monopolistic competition

Oligopoly

Monopoly

Unfair competition

Demand for labour is more likely to be wage inelastic if.

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Wages are a small proportion of total costs

Demand for the final product is price elastic

It is easy to replace labour

Capital is a good substitute forlabour

Which of the following shifts the demand curve for hot dogs leftward.

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An increase in the price of a hot dog bun

A decreases in the price of a hot dog bun

An increased in the price of a hamburger

An increases in the price of a hot dog

Headquarter of International Association Development is located in.

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Vienna

New York

Washington

None of these

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 percentage change in the quantity demanded in response to a percentage change in the price is known as the.

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slope of the demand curve

Excess demand

Price elasticity of demand

All of the above

Which of the following changes shifts the AD curve up and to the right.

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A rise in the nominal money supply

An increase in income taxes

An increase in the risk on nonmonetary assets

A decreasing the future marginal productivity of capital.

when there is huge change in demand following method is used to measure elasticity of demand.

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Percentage method

Arc method

Point method

Other method

The low productivity of capital in Pakistan is due to.

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Low income

Low saving

Limited capital market

All of these

A checking deposit held at a commercial bank is considered ______ of that bank.

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An asset

Net worth

a liability

Capital

An increase in the real wage rate will cause

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The labor demand curve to shift to the right

The labor demand curve to shift to the left

The quantity of labor demanded to rise

A movement along the labor demand curve

Which of the following is not a way of helping developing economics.

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Aid

Loans

Protectionism of developed markets

Training and education programmes

Arne Naes founded the school of.

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Eco ethics

Deep ecology

Eco philosophy

Environmental ethics

An increase in autonomous consumer expenditure causes the equilibrium levelof aggregate output to _______ at any given interest rate and shifts the ____ curve to the

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rise ; LM ;right

rise ; IS ; right

fall ; LM, Left

rise ; IS ; Left

If there is a price floor there will be.

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Shortages

Surpluses

Equilibrium

All of these

If the Central Bank wanted to decrease the quantity of money held by the public it would.

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Sell government securities

Buy government securities

Lower the legal reserve requirement

Raise taxes

The liquidity trap occurs when the demand for money

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Is perfectly interest elastic

Is perfectly interest inelastic

Means that an increase in money supply leads to a fall int he interest rate

Means that an increase in the money supply leads to an increase in the interest rate

All of the following are recognized as arms of agricultural price program except.

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Dampening the fluctuations agricultural commodity price.

Maintaining some purchasing power of agricultural households

Shifting the elastic demand for agricultural commodities.

Appeasing some politically powerful special interest grops

The economies of the developing nations are monitored by.

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ILO

WTO

IMF

UNICEF

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

If any equation involving two variables, such as y -=2x + 1, the variable that appears on the right hand side of the equation is by convention called.

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Dependent variable

independent variable

Endogenous variable

Explained variable

A technological improvement will

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Increases the desired capital stock

Decrease the desired capital stock

Have no effect on the desired capital stock

Have the same effect on the desired capital stock as an increase in corporate taxes.

National Income account of Pakistan have registered GDP & GNP as.

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GDP = GNP

GDP < GNP

GDP > GNP

GDP / GNP

According to the factor endowment model of Hackshcer and Ohlin countries heavily endowed with land will.

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Devote excessive amounts of resources to agricultural production.

Devote insufficient amounts of resources to agricultural production

Export products that are and intensive.

Import products that are land intensive

Allocative efficiency is achieved under which of the following market structures.

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Perfect competition

Monopolistic competition

Oligopoly

Monopoly

If two sets contain the same distinct elements, then they are called.

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Equal sets

Unequal sets

Equivalent sets

All of the above

Real business cycle theorists argue that ___________ can explain short and long term fluctuations in output.

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Imperfect labour markets

Rational expectations

Intertemporal decisions of households firms and government.

Sun spot cycles

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