Question # 1

Which of the following concepts represents the extra revenue a firm neceives from the services of an additional unit of a factor of production.

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Total revenue

Marginal physical product

Marginal revenues product

Marginal revenue

Injection are

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Assumed to be exogenous

Assumed to be a function of national income

Decrease aggregate demand

Decrease the investment into an economy

An increase in the discount rate at the FED generally has the following effect on bond prices.

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There is no demonstrated effect

Such an increase tends to lower bond prices.

Such an increase tends to raise bond prices

Bond prices are related to the government purchase and sale of bonds.

Tertiary activity includes.

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Production

Services

Agriculture

None of these

In monopoly which of the following is true.

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There are many buyers and sellers

There is one main buyers

There is one main seller

The actions of one firm do not affect the market price and quantity.

The Marginal cost of product W exhibiting positive externalities is McW = 25 + 5 Qs, the competitive price for each unit of W (Pw) is Rs. 175 and the positive externality is worth Rs. 100 to society for each unit produced. Society considers product W under produced by how many units.

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10 Units

15 Units

20 Units

5 units

The renowned economist and Islamic scholar who applied principles of politics economics was.

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Imam Abu Haneefa

ibn e Khaldun

Imam Abu Yousaf

Abu Qasim

___________ are quotas that lead to a complete abolishment of trade.

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Nontariff barriers

Embargoes

Voluntary export restraints

Orderly marketing agreements

A 15% VAT is a.

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Proportional income tax

Fixed excise duty

Ad valorem indirect tax

None of the above

Disposable income is.

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Income less taxes

Income less direct taxes

income less indirect taxes

All of these

Which of the following part of M1

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Stock negotiating accounts

Automatic transfer system accounts

Negotiable orders of withdrawal accounts

Demand deposits of mutual saving banks.

Loss must be shared according to ratio of respective investment in case of.

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Musharika

Hire purchase

Mudaraba

All of these

The key difference between classical and Keynesian macro economist is their differing beliefs about.

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The slope of the aggregate demand curve

The speed at which prices adjust

The natural rate of unemployment

The full employment level of output

The bowed shape of the production possibilities curve illustrates

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The law of increasing marginal cost

the production is inefficient

the production in unattainable

The demand is relatively inelastic

Disinflationary demand management policies.

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Achieve a lower rate of inflation without causing a decreases in output.

Reduce output but have no initial effect on the inflation rate

Require an increase in government spending.

Require a reduction in the growth rate of the nominal money supply.

The philippic curve is the relation between inflation and unemployment that hold for a given natural rate of unemployment. and a

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Given rate of inflation

Given expected rate on inflation

Given level of unemployment

Given expected level of unemployment

The agricultural price support program is an example of.

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A price celling

A price floor

Equilibrium pricing

None of these

If A and B are symmetric matrix, then AB- BA is.

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Symmetric

Skew symmetric matrix

Idempotent matrix

Orthogonal matrix

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.

The first step in formulating a problem is.

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Statement of the prblem

Gathering of data

Measurement

Survey

The origin of the idea of a trae off between inflation and unemployment was a 1958 article by

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A.W Philips

Edmund phelps

Milton Friedman

Robert Gordon

When stock market is falling it is calle.

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Bearish

Bulish

Imperfect competition

Fall down

Barriers to entry do not include

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Patents

Internal economics of scale

Mobility of resources

High investment costs

Which of the following would most likely shift the production possibilities curve for a nation outward.

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A reduction in unemployment

An increases in the production of capital goods

A reduction in discrimination

An increase in the production of consumer goods

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

If tastes are identical between countries then comparative advantage is determined by

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Supply conditions only

Demand conditions only

Supply and demand conditions

Can't tell without more information.

An optimal tariff is one which reduces imports to the level at which ___ equals

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imports , exports

The balance of trade, zero

The demand for currency, the supply of currency

Social marginal cost social marginal benefit

In the monetary base is increased by $1,000 and the reserve requirement is 10% by how much will the money supply be increased.

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$100

$1,000

$5,000

$10,000

The increase in total cost when one more units is produced is known as.

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Marginal cost

Opportunity cost

Limited cost

Average cost

Which of the following is not likely to be a government objective.

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Increasing employment

Increasing economic growth

Increasing government spending

Increasing the level of exports

"Human Welfare is the subject of Economics" Y. This statement is associated with the name of which of the economists.

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Marshall

Pigou

Pension

All of the above

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