Question # 1

The natural rate of unemployment is likely to tall if

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Unemployment benefits increase

Income tax increases

More training is available for the unemployed

Geographical immobility increases

The effect of the most favored nation clause is to.

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Eliminate all tariffs between countries

Increase all tariff rates between countries.

Maintain a nondiscriminatory structure of tariffs

Maintain a discriminatory structure of tariffs

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

A specification of a maximum amount of a foreign produced good that will be allowed to enter the country over a given time period is referred to as a

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Domestic subsidy

Export subsidy

Import quota

Export quota

According to the .A.H Hasen the capitalistic economy is basically characterized with

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Instability

Stability

Inefficiency

Efficiency

Given the cost data indicated in the table above the average variable cost of producing 7 units of output is

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Rs.37

Rs.29

Rs.31

Greater than Rs.37

The theory of Ruler -urben migraines presented by.

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W.W. Roslow

M.P.Todaro

Simon Kuznets

Nukse

Output fell sharply in the transition economies because.

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Banks were undoable to function

There was little corporate control

Vital infrastructure was missing

All of the above

Fiscal policy is weak under floating exchange rates as fiscal expansion.

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Crowds out imports

Crowds out public consumption

Crowds out exports

Reduces the budget deficit

The prisoners Dilemma Game demonstrates that.

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Players are better off to act independently

Monopoly is better than competition

People will always cheat

Players are better off if they con operate

If a firm which polluted the water of area had to pay all social cost would have

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Small output

Large output

Heavy output

B and C

According to the cost based definition of dumping dumping occurs when a firm sets a product abroad at a price that is less than

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Average total cost

Average variable cost

Average foxed cost

Marginal cost

In the short run no firm operates with a loss unless

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Variable cost equals fixed cost

Variable cost falls short of fixed cost

Total revenue covers variable costs

Total revenue covers fixed cost

In the balcne of payments, travel and tourism are included int he category of.

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Unilateral transfers

Capital account

Merchandise account

Services account

When plotted with the aggregate price level on the vertical axis and output on the horizontal axis which of the following curves is vertical.

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SRAS

AD

LRAS

None of the above

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

It provides systematic knowledge on problem and issues analyzed.

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Research report

Research proposal

Research abstract

Research design

If the price elasticity is -0.3 this means.

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Demand is upward sloping

Demand is price elastic

A price fall would increase revenue

Demand is price inelastic

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

Macro economics is the study of.

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Individual building blocks in the economy

The relationship between different sectors of the economy

Household purchased decisions

The economy as a whole

For any square matrix A of order 'n' a +A is.

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Skew symmetric

Non skew symmetric

Symmetric

Non symmetric

The two main characteristics of the production function are.

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It slopes downward from left to right and the slope become flatter as teh input increases

It slopes upward from left to the right the slope becomes steeper as the input increase

It slopes upward from left to right unput increases

It slopes downward from left to right and the slope becomes steeper ath the input increase

If GNP of Pakistan nees it wil encourage

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Exports goods

imports goods

Both a and b

None

Which of the following is not a macro economic issue.

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Unempolyment

Inflaction

The wages paid to footballers

Economic growth

An expansionary supply side shock results in.

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An increased real national income

The aggregate supply curve shifting to the left

The aggregate demand curve shifting to the right

The aggregate demand curve shifting to the left

Which of the following is an example of a productivity shock.

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The introduction of new management techniques

A change in taxes on corporate profits

A change in the level of government transferors

An increase in the money supply

A positive definite Hessian fulfills the second order conditions for

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Maximum

Minimum

Both maximum and minimum

Mini max

Keynes considered subjective and objective factors.

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Determinants of investment

Determinants of business will ingress to supply

Unimportant determinants of consumption.

Important determinants of consumption.

"The problem with monetarism is that its advocates have seen it as infallible over short periods of time and wish it to be rigid in its application over all periods of time "The advocates of monetarism wish it to the rigid in its application over all periods of time to.

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Weaken fiscal policy

Avoid monetary policy errors

Strengthen the impact of monetary policy

Ensure the independence of the central bank

Classical economics believe that in the short run.

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Money neutrality exists and prices adjust rapidly

Money neutrality does not exist and prices adjust rapidly

Money neutrality exists and prices do not adjust rapidly.

The quantity of money demanded varies.

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Directly with both prices and output

Inversely with both prices and output

Directly with prices and inversely with output

Inversely with prices and directly with output

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