Question # 1

If injections are greater than withdrawals.

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National income will increase

National income will decrease

National income will stay in equilibrium

Price will fall

If the coefficient of income elasticity is negative.

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Inferior good

Normal good

Luxury good

All of these

Ahmed regression model yields a Durbin Watson d statistic whose value is 0.002. The results indicate.

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Positive serial correlation

the presence of multicollinearity

No serial correlation

Negative serial correlation

The Human Development index is based on.

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Income per capita human capita economic vulnerability

Income per capita, life expectancy education

Income per capita child mortality rates education.

Income per capita life expectancy economic vulnerability

Following is the major source for a country to meet the deficiency of capital

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Domestic saving

Foreign aid

Domestic barrowing

All of these

Which crops are sown in Rabi Seasons.

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Tobacco, rape seed

Wheat, gram

Barely and mustard

All of them

If marginal revenue equals marginal cost

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No profit is being made

total revenue equals total cost

Profits are maximized

Producing another unit would increase profits

Pakistan to get ________ of gas from Pak iran Gas pipeline Turkmenistan -Afghanistan , Pakistan , India gas pipeline.

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1.5 billion cubic feet

2 billion cubic feet

2.5 billion cubic feet

3 billion cubic feet

The central bank of a country plays a significant role in her macroeconomics performance by regulating the.

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Money supply

Supply credit

Interest rate

All of these

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

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Wages

Income

Wealth

Profit

The difference between bid rates and ask rates is called the

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Profit

Arbitrage

Spread

Forward transaction

When the reserve requirement on checking deposits is 0.10 and the Federal Reserve purchases government securities values at Rs. 100,000, the MI money supply.

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Is unchaged

Increase by Rs.100,000

Increases by Rs. 1,000,000

None of these

A depreciation of the dollar willhave its most pronounced impact on imports if the demand for imports is.

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Constant

Inelastic

Elastic

Unitary elastic

When the S/L exchange rate rises the pounds______ and whent he S/L rate falls the pounds.

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depreciates, appreciates

revalues, devalues

appreciates, deprecates

becomes more expensive, becomes cheaper

From a Keynesian perspective business investment will de cline as a result of.

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A fall in the interest rate

A decrease in business taxes

A decline in business expectations

Acceleration of business depreciation

Most Microeconomic models assume that decision makers wish to.

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Make themselves as well off as possible

Act selfishly

Not cooperate with others

None of the above

If the Federal reserve conducts open market ________ the money supply _______ shifting the LM curve to the right.

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Purchases ; decreases

sales ; increases

purchases ; increases

sales ; decreases

The reduction of the inflation rate is called

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Deflation

Disinflation

Inflation

Reflation

Per Capita income is obtained by dividing National income by

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Total labor Force in the country

Unemployed Youth in the country

Total population of that country

None

In a fixed exchange rate regime, the central bank will intervene by __ pounds to ______ the exchange rate.

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Selling, increase

buying , increase

selling, reduce

both b and c

Demand for a normal product may shift outwards if.

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Price decreases

The price fo a substitute falls

the price of a complement rises

Income falls

A sudden shift from import tariffs to free trade may induce short term unemployment in.

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Import competing industries

Industries that are only exporters

Industries that sell domestically as well as export

Industries that neither import nor export

All of the following are type of monetary policy except

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A nominal money stock target

A balances budget

An inflation target

The pursuit of a target real interest rate

The measure used to examine the distribution of wealth at the world level is.

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Gini coefficient

Lorenz curve

Philips curve

None of these

Given the above demand and supply equations for widgets, the equilibrium price and quantity is.

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P = Rs. 20, Q = 60

PO = Rs. 60, Q, = 20

P Rs. 35, Q = 45

P - Rs. 12, Q = 88

An important policy instrument to influence commercial banks is.

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Open market operations

Changing reserve ratios of commercial banks

Moral persuasion

None of the above

In land intensive method which mean production is used comparativelymore

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Labour

Land

Capital

Organization

Monetary policy is concerned with influencing.

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The general level of money wages

The level of government expenditure

The price and availability of money

The level of shares on the stock market

A commercial bank has a required reserve ratio of 20% and desires to hold 5% in excess reserves. the bank receives a Rs. 10,000 deposit. It it abides by the required reserve ration and its desire to hold excess reserves the bank can make a loan of a most.

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Rs.7500

Rs.2500

Rs.5000

Rs.30,000

Earning from primary products are often unstable because.

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Demand is price elastic

Supply is price elastic

Supply conditions are relatively stable

Supply conditions are unstable

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

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