Question # 1

A pure number by which change in investment is multiplied to change in income is called

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Multiplier

Accelerator

Stabilizer

All of these

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

Which of the following is necessary for a natural monopoly.

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Economies of scale

A high proportion of the total cost is the cost of capital goods

The market is very small

All of the above

An increase in autonomous net exports

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Shifts IS rightward by k, ox

shifts IS left eard by k, AX

Increase the slope of IS

Decreases the slope of IS

In Islamic economic system following means of gaining wealth are permitted

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smuggling

Hoarding

Gambling

None of these

Assume a cosumer buys 25 units of good X at Rs.8 and 10 units of good Y at Rs. 6 in 1980. If Px = Rs. 6 and Py = Rs. 4 in 1970 the pasasche index is.

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1.14

1.65

1.37

1.47

Which of the following is true.

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If the marginal cost is greater than the average cost the average cost fallls.

If the marginal cost is greater than the average cost the average cost increases.

If the marginal cost is positive total costs are maximized

If the marginal cost is negatives total costs increase at a decreasing rate if output increases

An example of discretionary fiscal policy would be.

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The operation of the welfare sate

The operation of the processive federal income tax

A tax cut adopted to stimulate consumption

An interest rate out in plummeted to stimulate consumption

If a country has a bowed out production possibility frontier then production is said to be subject to.

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Constant opportunity costs

Decreasing opportunity costs

First increasing and than decreasing opportunity costs

Increasing opportunity costs

Find the change in revenue to the industry due to the taxs.

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Rs. 40 billion

Rs. 34 million

Rs.25 million

Rs.36 Million.

When aggregate economic activity increasing the economy is said to be in.

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An expansion

A contraction

A peak

A turning point

The difference between gross investment and net investment is.

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Depreciation

Acceleration

Deceleration

Capital investment

A monopoly market.

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Generally falls to maximize total economic well being.

Always maximizes total economic well being.

always minimizes consumers surplus

Generally falls to maximum produce surplus

The use of money is more efficient than barter because the introduction of money

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Reduces the need for economic specialization

Reduces the need to exchange goods

Reduce the need for other stores of value

Reduces transaction costs

A set continuing no elements is called.

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Null set

mpty set

void set

all of the above

A variable which is free to take any value we choose to assign to it is called.

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Dependent variable

Independent variable

Endogenous variable

Explained variable

If the central bank prints more 10 billion and spends them then as a direct result of this action.

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M1 and M2 both increases

Neighed M1 nor M2 increase

M1 increase but M2 does not

M2 increased but M1 does not.

In the cost of slugger rises and slugger is major ingredient in jelly beans then the jelly bean.

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Demand curve shifts to the left

Supply curve shifts to the left

Supply curve shifts to the right

Demand and supply curves both shift to the right

The price elasticity of demand will increase with the length of the period to which the demand curve pertains because.

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Consumers incomes will increase

The demand curve will shift toward

All prices will increase over time

Consumers will be better able to find substitutes

Second agricultural revolution came during

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Primitive age

Middle age

Modern age

None of these

Developing economies usually

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Have large industrialized sectors

Are dependent on primary products

Have high levels of wealth

Earn more from exports than is spent on imports

Economic theory assumes that people

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Act in greedy and selfish ways, without regard for the welfare of others.

Act without regard for their own interests.

Are not motivated by self interest

Are motivated by self interest but still might be concerned for the welfare of others.

In a typical cartel agreement the cartel maximizes profit when it.

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Behaves like a monopoly

Behaves like a perfectly competitive firm

Behaves like a duopoly

Is flexible in enforcing production targets

Research may be made through either arbitrary method of

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Rational method

Scientific method

Imagination method

Vague method

If the demand curve for a good is downward sloping then the good must be.

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Normal

Inferior

Giffen

Either a or b

When the population is badly affected, which type of sampling is appropriate.

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Systematic sampling

Stratified sampling

Cluster sampling

None of the above

You move some of your savings account balance into your checking account.

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M2 falls and M1 rises

M1 falls and M2 rises

M1 and M2 are unchanged

M1 rises and M2 remains unchanged

Which of the following type of taxes is the most regressive.

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Income taxes

Sales taxes

Excise taxes

None of these

The measured of GDP includes

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Non market goods such as home making and child rearing

The benefits of clean air and water

Estimated values of activity in the underground economy

Purchases and sales of goods produced in previous periods

The short run aggregate supply curve the absence of misperceptions.

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Is vertical

Slopes upward

Is horizontal

Slopes downward

For a given positively sloped supply curve the price increase to consumers resulting from a specific tax imposed on sellers will be.

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Greater the more price elastic demand is

Greater the less price elastic demand is

Equal to the entire tax when demand is perfectly elastic

Equal to half of the tax whenever demand is unit elastic

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