Question # 1

To maximize revenue, an excise tax should be imposed on a product

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That has a highly elastic demand curve

Such as St. Joseph's children's' aspirin.

Such as salt

such as Toyota automobiles

According to Okun's law an increase in the unemployment rate will cause_______ in the level of empolyment and __ in the level of output.

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An increase ; an increase

An increase; a decrease

A decrease ; an increase

a decrease ; a decrease

The price of Ketchup at a market increases by 12.5% per can, which results in a decrease in quantity purchased by 40% per week, the demand is.

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Relatively elastic

Relatively inelastic

Perfectly elastic

Perfectly iinelastic

Wars new inventions, harvest failures, and change sin government policy are examples of.

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The business cycle

Economics models

Shocks

Opportunity costs

Kharif crops include.

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Cotton and rice

Maize and Sugarcane

Jawar and Bajra

all of the them

The goal of a pure market economy is to best meet the desires of.

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Consumers

Companies

Workers

The government

An increase in costs will

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Shift aggregate demand

Shift aggregate supply

Reduce the natural rate of unemployment

Increases the productivity of employees

As income increases.

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the average propensity to consume gets nearer in value to the marginal propensity to consume

the average propensity to consume diverges in value from the marginal propensity to consume

the average propensity to consume falls

The averge propensity to consume always approaches 0

A state of government bonds by the central bank should cause

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Bond prices to rise

an increase in the supply of money

An increase in chartered banks loans

A decrease in reserves of the banking system.

In monopolistic competition firm sell

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Same goods

Differential goods

Inferior goods

Superior goods

A change that increases the real money supply relative to real money demand causes.

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The LM curve to shift down and to the right.

The LM curve to shift up and to the left

The IS curve to shift down and to the left

The IS curve to shift up and to the right.

If any equation involving two variables, such as y -=2x + 1, the variable that appears on the right hand side of the equation is by convention called.

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Dependent variable

independent variable

Endogenous variable

Explained variable

The costs of disinflation would be low if

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Expected inflation falls as inflation falls

Wages and price controls were used

The Phillips curve were nearly horizontal

The Phillips curve adjusted slowly to changes in inflation

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

Which one of the following would cause demand pull inflation.

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Increases iin production costs

Wage gains in proportion productivity gains

An increase in aggregate demand with shortages of sup ply

Monoposonistic labor markets

Credit (+) items in the balance of payments correspond to anything that.

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Involves receipts from foreigners

Involves payments to foreigners

Increases the domestic money supply

Decrease the demand for foreign exchange

Which of the following changes shifts the AD curve down and to the left.

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A temporary increase in government purchases.

A rise in the nominal money supply

A decrease in corporate taxes

A decrease in consumer confidence

A square matrix with 1's in its principal diagonal and zeros every where else is.

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Diagonal matrix

Identity matrix

Leading diagonal

Scalar matrix

An increase in the number of workers hired by a firm could result from

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a decrease in the marginal product of labor

a decrease in the marginal revenue product of labor

An increase in the real wage

A decrease in the real wage

What is the effect of imposing a fixed per unit tax on a good on its equilibrium price and quantity.

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Price falls, quantity rises

Price rises, quantity falls

Both price and quantity fall

Both price and quantity rise

Rachel Carson wrote the book

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Silent spring

Transpersonal ecology

Deep ecology

None of these

Under floating exchange rates, expectations of higher interest rates are likely to cause an __________ of the exchange rate.

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Depreciation

Appreciation

fall

Devaluation

"Treating an individual as typical of a group.

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Pure discrimination

statistical discrimination

Human capital

Specific skills

Which among the following is the sensible theory of sampling.

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Induction

Inertia

Regularity

None of the above

The overall Budget Deficit is financed from

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External borrowing

Non bank borrowing domestically

Bank borrowing plus the above two at a and b

None of the above

If GNP of Pakistan nees it wil encourage

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Exports goods

imports goods

Both a and b

None

Local correspondent's method can be applied only where a high degree of precision is not.

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Case

Necessary

Interview

Nalied

Given the saving equation S = - 50 + 0, 20 Y, where s is saving and Y is income.

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The break even level of income is 240

Dissaving takes place if income is 300

Consumption expenditures and saving are equal at an income level of 500

The MPS is constant for all levels of income

Absolute advantage is determined by

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Actual difference in labor productivity between countries.

Relative difference in labor productivity between countries.

Both a and b

Neither a nor b

The function of money do not include.

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an exchange of purchasing power

A unit of account

A medium of exchange

A store of value

The factor endowment theory was pioneered by

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Adam Smith

David Richardo

Wassily Leontief

Ell Heckscher and Bartill Ohlim

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