Question # 1

Indifference curve theory is old wine in new labeled bottle is said by.

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Marshall

Griffin

Ricardo

Allen

Intra industry trade therory.

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Explains why the United States might export autos and import clothing

Explains why the united states might export and import differentiated versions of the same product such as different type of autos.

Assumes that transport costs are very low or do not exist

Ignores seasonal considerations for agricultural goods

In Islamic economic system business is allowed in the field of.

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Halal goods only

beneficial goods

Consumer goods

All of these

A nation experiences internal balance if it acieves.

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Full employment

Price stability

Full employment and price stability

Unemployment and price instability

Starting from a balanced budget, for a given tax rate an increase in income will cause the government budget to.

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Move into surplus

Move into deficit

Remain unchanged

None of these

A temporary adverse productivity shock would.

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Shift the labor supply curve upward

Decrease the level of employment

Decrease future income

Decrease the expected future marginal product of capital

The valued of expenditure multiplier relates.

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The change in autonomous spending to the change in income

the change in consumption to change in income

The change in come to the change is consumption

The change in income to the change in autonomous spending.

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

A rise in planned investment spending unrelated to the interest rate causes teh equilibrium level of aggregate output to __________ at shifts the _____ curve to the _______

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rise ; LM ;right

rise ; IS ; right

Fall ; LM ; left

rise ;IS; right

More trade and more and is the demand made by the

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Developing countries

Developed countries

More developed countries

Non developing countries

A tariff that prohibits imports has only

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a revenue effect and redistribution effect

Revenue effect and protection effect

Consumption effect and protection effect

Redistribution effect and consumption effect

The factor endowment theory was pioneered by

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Adam Smith

David Richardo

Wassily Leontief

Ell Heckscher and Bartill Ohlim

Firms in perfect competition face a

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Perfectly elastic demand curve

Perfectly inelastic demand curve

Perfectly elastic supply curve

Perfectly inelastic supply curve

The notation of Relationship is important

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Dominations ecology

Deep ecology

Sympathy ecology

None of these

In the Keynesian model which curve is vertical.

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LRAS

SRAS

AD

NS

Why do people keep currency in their pockets when bank deposits pay interest.

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Because banks might steal your money

Because currency is more liquid

Because bank deposits lose value due to inflation

Because bank deposits lose value due to exchange in interest rates.

Since 1960, the rate of economic growth in the country has been

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On the decline continuously

Increasing continuously

Increasing occasionally

Static in real terms

A decrease in the marginal propensity to import will lead to.

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An increase in GNP

Lower the multiplier

An increase in imports

A decrease in imports

To avoid double counting when the GNP is estimated, economists

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Price all goods and services bought and sold in all markets

Use the GNP deflator

Price only intermediate goods

Calculate value added at each stage of production.

If a monopoly is unable to cover its short run variable costs, if should.

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Shut down

Raise price

Lower price

Increase output

In perfect competition the industry will be in equilibrium.

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when all the firms earning abnormal profit

When all the firms earning normal profit

All firms having loss

All firms having proft

The Islamic mode of business where the subscriber participate with the money and the manager with skill and labor is.

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Qarz -e - hasna

Musharika

Mudaraba

Islamic business

What lies is at the heart of the allocation of goods and services in a free market economy.

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Concerns of equity or equal distribution among individuals.

The order or command of the ruling government or dictator

The wishes of consumers in the market

The price mechanism

The theory that is equilibrium workers wages will barely be adequate for biological needs is knows as the.

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Labor theory of value

Convergence hypothesis

Subsistence theory of wages

Indicative planning model

To be considered a good candidate for an export cartel a commodity should.

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Be a manufactured good

Be a primary product

Have a high price elasticity of supply

Have a low price elasticity of demand

Major sector of the Pakistan economy in

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Export sector

Industrial sector

Services sector

Agriculture sector

The value of a household's assets minus the value of its liabilities is called.

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Income

Debt

Stock

Wealth

The main role of the Federal Reserve is to

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Administer the government on the state of the economy

Overses the operations of the financial system and monetary management.

Establish the value of the dollar and official interest rates

Provide advice to the government on the state of the economy.

Pure research also known as

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Fundament research

Action research

Practical research

applied research

A monopolistically competitive firm differs from a perfectly competitive firming that unlike the perfectly competitive firm it.

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Faces a downward sloping demand curve

Can change the characteristics of its product.

Can vary the price of its product.

All of the above

It enables the researcher to acquaint himself with current knowledge in the field in which he is going to conduct his research.

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Social survey

Research proposal

Review of literature

Research design

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