Question # 1

According to Keynes, the level of employment is determined 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.

In a competitive industry each buyer and seller.

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Is a price taker

Produce different products

Believes that can influence price

Prevents the entry of competitors

A shift in supply will have a bigger effect on price than output if demand is.

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Income elastic

Income inelastic

Price elastic

Price inelastic

Over a two year period your income has increased 10% At the same time the consumer price index has increased 205 Your real purchasing power is.

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92% of the original value

50% of its original value

Not affected by the price change

109% of its original value

The aggregate demand curve is downward sloping because a higher price level.

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Makes people wealthier and so they spend more

Causes higher wages and so people spend more

Cuts the real value of income and so people spend less

Decreases the real supply of money decreasing spending.

(A+B) + C =a +(B+C) This law of matrices is known as.

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Cumulative law

Associative law

Distributive law

Identity law

Contextual analysis is a type of

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Descriptive analysis

Historical analysis

Case study

Content analysis

How many stock exchanges are there in Pakistan.

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2

3

4

5

The ABC corporation.

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Is earning a pure economic profit

Should produce zero units of output

Is sustaining an economic loss

Is breaking even

The econometric problem of errors in variables leads to

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Ballasted estimates of regression coefficients.

Autocorrelation

Unbiased estimates of regression coefficients but non minimum variance of estimated coefficients.

None of the above

Given or known values in an equation are called.

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Constants

Parameters

Coefficients

All of the above

If the price elasticity of demand for a non giffen good is inelastic are decreased in its price result in.

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Increase in demand

Decrease in demand

Increase in total revenue

Decrease in total revenue

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

In monopsony there is

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Single seller

Two buyers

Single buyer

Few buyer

In order to constitute an oligopolistic market structure.

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There must be a few firms in a given relevant market

There must be a few firms selling in a national market

There must be more than 20 firms selling in the international market

There must be fewer than 15 firm is any given market

Livestock is

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An independent sector

Sub -sector of agriculture

Should be a part of Agriculture

Would become a part of Agriculture

Academic community is otherwise called.

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General public

Target audience

Participant audience

Scientific community

Which of the following rights be a scarce good.

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Love

faith

Self control

All of above

If an increase in investment leads to a bigger increase in national income this is called the.

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Accelerator

Aggregate demand

Monetarism

Multiplier

If the income tax rate changes from 30% to 40% on incomes over L 30,000 and a person's income is l 31,000 then her marginal tax rate is.

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30%

10%

70%

40%

A diagonal matrix whose diagonal elements are equal is called.

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Unit matrix

Singular matrix

Scalar matrix

Non singular matrix

State Bank of Pakistan was established in

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July 1st 1948

July 1st 1952

July 1st 1953

July 1st 1947

The "balance trade" is a record of.

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Exports and imports of financial assets

The current account plus capital account

The export of goods and services.

the value of merchandise exports minus imports

Your checking account is

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An asset for you and a liability for your bank

A liability for you and an asset for your bank

An asset for both you and your bank

A liability for both you and your bank

The type of business in which an individual has unlimited responsibility for the debts of the organization.

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Partnership

Corporation

Monopoly

None of these

__________ is a said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries infavor of member countries.

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Trade creation

Trade diversion

Trade exclusion

Trade distortion

The free market involves

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The free provision of products

The subsidizing of products by the government

Market forces of supply and demand

All trade via barter

The world trade organization is sometimes criticized for all of the following reasons except.

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If reduces the sovereignty of member countries.

Favors free trade over the quality of the environment

It has no way to solve trade disputes among member countries.

It is a "puppet" of multinational corporations

A decrease in autonomous consumer expenditure causes the equilibrium level of 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

Economists tend to disagree primarily about.

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The implications of scarcity for our economy

Which resources are free

Topics in positive economics

Issues of normative economics

In the Keynesian cross diagram, an expenditure causes the aggregate demand function to shift _________ and the equilibrium level of aggregate output to.

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up ; rise

up ; fall

down ; rise

down ; fall

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