Question # 1

A model of game theory of oligopoly is known as the

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Prisoner's dilemma

Monopoly cell

Jailhouse sentence

Jury box

If the State bank of Pakistan wished to pursue a light monetary policy it would.

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Lower the required reserve ratio and the statutory liquidity ratio.

Lower interest rates

Buy government securities on the open market

Sell government securities on the open market

Which of the following is incorrect with respect to the consumption diagram.

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the interest rate is a premium

MRS = (i +r)

The consumer will be lender in time zero

The consumer lends 700

Which of the following is most likely to benefit a debtor.

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Un anticipated deflation

Anticipated deflation

Unanticipated inflation

anticipated inflation

Research design as the conceptual structure with in which the research is.

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Judgment

Design

Survey

Conducted

The theory that explains business cycles by the dynamic interaction of consumption and investment demand is the.

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Sun spect theory

Multiplier accelerator model

Solow theory

New classical theory

management of the economy via extensive regulation and laws specified by the national government is most consistent with

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syndication

Mercantilism

Classical liberalism

None of these

If a Set C contain all the elements which are present in both the set A and B then set C is called.

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Union of A and B

Intersection of A and B

Complement of A

Complement of B

The first five year plan 1955-60 was prepared by the board and was released in.

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1956

1957

1958

None of the above

Along the long run supply curve all of the following can vary except.

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The level of profits

The number of firms in the industry

Input prices

The level of input usage

Julius smon ha pointed out the applied social sciences in.

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Policy assessment

Policy implementation

Policy formulation

Policy decision

the ouput where diminishing return to production begin is also the ouput where

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Marginal cost is at a minimum.

Average total cost is at a minimum

Average variable cost is at a minimum

Marginal and average

A widely used indicator to differentiate developed countries from developing countries.

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International trade per capita

Real income per capita

Unemployment per capita

Calories per capita

In balance of payments accounting tourism and travel are classified in the

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Merchandise trade account

Services account

Unilateral transfers account

Capital account

The most important determinant of price elasticity is.

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The slope of the demand curve

The availability of substitutes

The price of other goods

The income of the consumer

Can economic theories be tested.

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No since individuals will seldom respond in predictable ways

Yes, since all individuals respond int he same ways to the same situation.

No , since the general behavior of a large numebr of individuals cannot be predicated

Yes , since people will, on average, respond in predictable ways to changes in costs and benefits.

A linear function of the form 6x2 - 2y + 8 = 0 is known as.

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Explicit function

implicit function

Quadratic function

All of the above

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

The money multiple tells us teh ultimate increase in.

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The income level due to an increase in the money base

The money supply due to an increase in the money base.

The money supply due to an increase in the income level

The income level due to an increase in the money supply

A firm that is a price taker faces a perfectly

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Elastic supply curve

Inelastic demand curve

Elastic demand curve

In elastic supply curve

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

All of the following are types of imperfect competition except

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Monopolistic competition

Oligopoly

Monopoly

Unfair competition

The key issues of macroeconomics are

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Unemployment

Inflation

Economic growth

All of the above

In a pure market economy which of the following is a function of the price.

i - provide information to sellers and buyers

ii- Provide incentives to sellers and buyers

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I only

ii Only

both i and ii

Neither i nor ii

What is the per unit marginal cost of increasing production from 20 to 25 units.

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Rs. 3,500

Rs.100

Rs.4,000

Rs.500

The elements in the Horizontal line in a matrix is called.

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Columns

Rows

Elements

Diagonal

In 1950's subsidies given to.

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Agriculture sector

Export sector

industrial sector

Services sector

A circular constellation of force tending to act and react upon each other in such away to keep a poor country in a state of poverty is termed as.

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Vicious circle of poverty

Low capital formation

Low development

disguised unemployment

An allocation is Pareto efficient if no reallocation of resources would make some people_______ whiteout making others

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Worse off, worse off

better off, better off

better off, worse off

equal , unequal

A firm that breaks even after all economic costs are paid is earning.

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Economic profit

Accounting profit

Normal profit

Supernormal profit

If the Bank of Pakistan wished to pursue a tight monetary policy is would.

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Sell government securities on the open market.

Reduce the minimum reserve asset ratio

Buy government securities on the open market.

Lower interest rates

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