Question # 1

Suppose your company is in equilibrium with its capital stock at the desired level A permanent decline in the expected real interest rate now has what effect on your desired capital stock

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Raises it because the future marginal productivity of capital is higher

Lowers it because the future marginal productivity of capital is lower

Raises it because the user cost of capital is now lower

Lowers it because the user cost of capital is now higher

If the home country government grants a subsidy on a domestically produced good domestic producers lend to.

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Capture the entire subsidy in the form of higher profits

Increases their level of production

Reduce wages paid to domestic workers

Consider the subsidy as an increase in production cost

As the interest sensitivity of money demand increases

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The multiplier term increases

Fiscal policy has a greater effect on output

Monetary policy has a smaller effect on output

All of the above

A nation with a current account deficit will be

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Lending more money to other nations

Experiencing a surplus in exports of goods and services

Reducing its indebtedness to other nations

Going further into debt with other nations

Skewness refers to.

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Symmetry

Asymmetry

Flatness

Varience

Parameter in inferential statistics refers to

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Sample value

Data

Population value

Variable name

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

In August ____ the government established a working group on private investment for the Eight Five Year plan 1993-98

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1989

1990

1991

None of these

The natural rate of unemployment is generally thought of as the

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Ratio of the frictional unemployment rate to the cyclical unemployment rate.

Sum of fictional unemployment and cyclical unemployment.

Sum of frictional unemployment and structural unemployment.

sum of structural unemployment and cyclical unemployment.

Objectivity means basing conclusions on facts without any bias and.

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Pilot study

Paradigm

Value judgment

Concept

Specific tariffs are collected as

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Fixed amount of money per unit traded

a percentage of the price of the product

A percentage of the quantity of imports

All of the above

A price cross elasticity of 0.81 between X and Y shows that.

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They are complementary goods

They are competitive substitutes

They are not substitutes

a reduction in the price of one would cause an increase in the consumption of the other.

Who was the social theorist tha proposed socialism a should serve as an intermediate stage on the way to an ideal communist society.

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Karl Marx

William Domhoff

Erik wright

Wright mills

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

The price elasticity of demand measures

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The responsiveness of quantity demanded to a change in prie.

How far a demand curve shifts

A change in price

A change in quantity demanded

The recording of the data is dome on the basis of the scheme.

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coding

Tabulation

Classification

Analysis

The matrix A multiplies by its inverse will b e a.

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Identity matrix

Skew symmetric matrix

Idempotent matrix

Adjoin of a matrix

For perfectly competitive firm

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Price equals marginal revenue

Price is greater than marginal revenus

Price equal total revenue

Price equals total cost

Silent spring is written by

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Spinoza

Paul Taylor

Arne Naes

Rachel Carison

Direct investment and security purchase are classified as.

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Capital account transactions

Current account transactions

Unilateral transfer transactions

Merchandise trade transactions

If two sets contain the same distinct elements, then they are called.

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Equal sets

Unequal sets

Equivalent sets

All of the above

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

Quotas are government imposed limits on the ___ of goods trade between countries.

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Prices

Quantity

Revenue

Costs

Agricultural income tax in Pakistan will be leived on the famers with land holding of or more than.

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30 acres

25 acres

15 acres

12.5 acres

The difference between what consumers have to pay for a particular and what they are willing to pay is known as.

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Consumer surplus

Producer surplus

Dead weight costs

Dead weight surplus

The first five year plan 1955-60 was prepared by the board and was released in.

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1956

1957

1958

None of the above

The institutional framework developed in 1974 to promote trade liberalization is known as.

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WTO

GATT

IMF

World bank

Object of case study is to.

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Gueralise theory

Datives theory

Expand theory

Flexible data collection

If the demand for money increase relative to the supply of money

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Interest rates will trend upward

Interest rates will trend downward

Interest rates are not affected by increases in money demand

Interest rates will behave randomly

Which of the following is a policy instrument .as opposed to a government objective.

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Lower interest rates

A better balance of trade position

Faster economic growth

Lower un employment

A tax cut __ disposable income _____ consumption expenditure and shifts the IS curve to the.

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Increases ; increases ; right

Increases ; decreases ; left

decreases ; increases ; left

decreases ; decreases ; right

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