Question # 1

Higher export demand _______ output and a higher MPZ______ output..

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Reduces, reduces

Reduces, increases

Increases, reduces

increases, increases

If the Bank of Pakistan wished to pursue an expansionary monetary policy it would.

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Increase the minimum reserve asset ratio

Sell government securities on the open market

Buy government securities on the open market

Raise interest rates.

If one car company takes over another car company this is an example of which type of integration.

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Vertical

Horizontal

Conglomerate

Literal

Except for taxes to offset ___ taxes are.

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Imperfect competition , popular

Extremality's, distortionary

Inequality, a first best option

Poor health, unnecessary

The "Law of demand" states that other things remaining the same the quantity demanded of any good is.

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Directly related to its price

Positively related to its price

Inversely related to its price

Directly elated to the supply of the good

The primary function of a bank is to.

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Control the money supply

Provide notes and coins for trade

Make a profit

Provide a chequeen clearing system.

The term skewness refers to.

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Bulginess

Lack of symmetry

symmetrical

Normal

An important feature of a___ is that the holder has the right , but not the obligation, to buy or sell currency

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Swap

Foreign exchange arbitrage

Foreign exchange option

Futures market contract

Non tariff trade barriers could include all of the following except

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Domestic content laws

Government procurement policies.

Health , safety and environmental standards

Autidumpiing /countervailing duties applied to imports

The World Bank gives

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Long term

Short term and long term credits

Both long term credits

None of these

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

Economic transition involves high inflation because ______ and _____

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High monetary growth, high wages.

High budget deficits, devaluation

High monetary growth, devaluation

Prices surge from an artificially low level to their equilibrium level the inflation tax is required as source of government revenue.

Advocates of industrial policy maintain that government should.

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Purse free trade as a policy that leads to maximum global efficiency

Grant subsides to firms offering potential comparative advantage.

Provide loans to domestic workers in exporting industries.

Increase interest rates on loans made to firms in import competing industries.

Less Developed countries lend to have

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A high average age

A slow population growth rate

High life expectancy

A low literacy rate

Net taxes are.

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Government expenditures minus government revenues.

Taxes paid by firms and households to the government minus the transfer payments made to firms and household.

Taxes paid by firms and household to the government plus transfer payments made to firms and hose holds.

Taxes paid by firms and hose hold to the government minus the cost of collecting the taxes.

Th transpose of the cofactor matrix is called.

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Adjoin of the matrix

Power of a matrix

Minor of the matrix

Rank of a matrix

If GNP = 1,000 billion and the money supply is 330 billion , then the velocity of money is.

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A value less than 1.4

3.33

1.48

3.03

The appropriate expenditure switching policy to correct a balance of payment surplus is.

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Currency revaluation

Currency devaluation

Expansionary monetary policy

Contractionary fiscal policy

The relationship between the exchange rate ad the prices of tradable goods is known as the.

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Purchasing power parity theory

Asset markets theory

Monetary theory

Balance of payments theory

First Islamic banking branch of NBP started its operations in Karachi onDecember 15

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2004

2005

2006

2007

"Some economists criticized the central bank for not moving in the face of the waning recovery One who prefers anonymity stated the failure to move today leaves us with low inflation a weak economy and climbing jobless claims these are classic signs of an impending downturn The fed fiddles while the economy burns This economist would want to see.

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A higher interests rate

A higher reserve requirement

a decrease in the money supply

An increase in the money supply

Which crops are sown in Rabi Seasons.

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Tobacco, rape seed

Wheat, gram

Barely and mustard

All of them

Suppose there is full employment and a neoclassical aggregate supply schedule A 105 increases in the nominal money supply.

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Has no effect upon the price level

Increase the rate of interest

Increase the nominal wage 10%

Increase the real money supply 10%

The increase in dependent variable that results when the independent variable increases by one unit in a simple lines. function is called.

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Y intercept of the curve

Slope of the curve

X intercept of the curve

Marginal value

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

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coding

Tabulation

Classification

Analysis

Which provides the best explanation of the failure of many poor countries to experience economic growth as rapid as the rich countries..

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Classical growth theory

Neoclassical growth theory

New growth theory

Market failure

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

If the demand curve for a good is downward sloping then the good must be.

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Normal

Inferior

Giffen

Either a or b

Anthropocentrism gives intrinsic value to

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Nature

Human beings

Both a and b

None of these

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

An essential Criterion of Scientific study is.

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Belief

Value

Objectivity

subjectivity

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