Question # 1

In the Keynesian cross diagram, an expenditure causes the aggregate demand function to shift _________ and the equilibrium level of aggregate output to.

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up ; rise

up ; fall

down ; rise

down ; fall

In the Keynesian model in the long run an increase in the money supply will raise

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The price level but not the level of output

The level of output but not the price level

Both the level of output and the price level

Neither the level of output nor the price level

Modern Technique can be applied on

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Economic land holding

Uneconomic land holding

any land holding

None of these

The cliche that "the punishment should fit the crime" originated in the writing of.

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Plato

Thomas Aquinas

Jeremy Bentham

David Hume

The method most commonly used to test the overall significance of a regression is.

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The t test

The F -test

Chi square test

R

Eco Philosophy mainly deals with ethical part

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Philosophy

Metaphysics

Logic

Aesthetics

The concept of unbaled growth and balance growth are.

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Unlimited value

Single value

Limited value

Short value

Compared to the case of perfect competition.

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Monopolist is more likely to

Charge a higher price

Produce a lower quantity of the product

All of the above

Usury is prohibited in

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Islam only

Sikhism only

Jewism

Both a and b

In the Harrod - Domar equation g = s/v , v is defined as.

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the value of the country a capital stock

The ratio of the country's capital stock to its output.

The change in the country's capital stock

None of the above

Economics is the study of.

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All business, including how they operate why the exist and how they afect

Decisions that people must make because goods and services are limited.

How to save money, spend money invest savings, and balance a checkbook

The stock market the bond market and investment strategies

Big business and its impact on our live

In a Boom

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Surpluses are likely to occur

Prices are likely to fall

supply will increase immediately to match demand

Shortages may occur

Objectivity means basing conclusion on facts wit out any

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Bias and value prediction

Bias and value judgment

Verifiability and value judgment

Prediction

Economists use the term marginal utility to mean.

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Additional satisfaction gained divided by additional cost of the last unit.

Additional satisfaction gained by the consumption of one more unit of a good

Total satisfaction gained when consuming a given number of units.

The process of comparing marginal units of all goods which could be purchased

Contextual analysis is a type of

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Descriptive analysis

Historical analysis

Case study

Content analysis

All of the following are parts of the business cycle except.

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Boom

slump

Recovery

Acceleration

The firm under monopolistic competition is likely to produce less and set a higher price than under perfect competition because.

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The firm faces decreasing returns to scale

The firm faces increasing costs

The firm must incur selling expenses including advertising.

The firm faces a downward sloping demand curve

The Harrod -Domar models are based on the restrictive assumption of.

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Increasing saving income ratio

Decreasing saving income ratio

Low saving income ratio

Constant saving income ratio

On a graph a positive linear relation ship.

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Moves down to the right

Moves up to the left

Moves up to the right

Modes down to the left

Estimation is the process of.

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Formulating some hypothesis about the population

Inferring statistic from parameter

Testing some hypothesis about eh population

Inferring parameter from statistic

"The impact on this monetary aggregate of extensive finance innovation -the changes in the kinds of deposits and services offered by banks led the central bank to drop M1 as a n intermediate target with the changes in the way the public was holding payments balances the M1 aggregate no longer that the same reliable link to.

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Tax rates

The money supply

Aggregate demand

Government spending

It essentially states that there is no relation between the variables of the problem.

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Hypothesis

Refines hypothesis

Crude hypothesis

Working

Naveed purchases product M for which his income elasticity of demand is negative Apparently product M is.

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A necessity

An independent good

An inferior good

A luxury good

A sudden shift from import tariffs to free trade may induce short term unemployment in.

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Import competing industries

Industries that are only exporters

Industries that sell domestically as well as export

Industries that neither import nor export

When an increase in government spending is matched by an equal decrease in government transfers the income level will.

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Stay the same

Increase

Decrease

None of these

according to factor price equalization theorem, if country A is labor abundant then once trade opens.

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Wages and rents should fall in A

Wages and rents should rise in A

Wages should rise and rents should fall in A

Wages should fall and rents should rise in A

For perfect competition ot work there must be

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Many buyers and sellers

A standard product

Free entry and exit

All of the above

As disposable income increases from Rs. 1500 to 2000 , saving increases from minus Rs. 50 to Rs.250 if the relationship between disposable income and saving is linear, the MPC obviously has a value of.

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.6

.8

.4

.2

A firm that breaks even after all economic costs are paid is earning.

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Economic profit

Accounting profit

Normal profit

Supernormal profit

A Rs.10 increase in autonomous investment spending shifts is.

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Rightward by Rs. 10

Leftwards by Rs. 10

Rightward by Ke (Rs.10)

Leftward y Ke (Rs.10)

Skills that can be transferred to other employers are called.

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General skills

Specific skills

Non pecuniary skills

All of the above

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