Question # 1

Qara -e- Hasna is normally payable to.

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Needy persons

Poors

Helpless

All of these

Some goods are not closely related to each other and are neither substitutes nor complements for such goods the cross price elasticity of demand would be.

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Positive

Negative

Zero

Cannot tell without more information

If a country has a burden of debt it cannot sustain it can.

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Reschedule debt

Get a loan from an international organization

Default on the loan

Any of the above

Current account deficits are offset by

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Merchandise trade deficits

Merchandise trade surpluses

Capital /financial account surpluses

Capital /financial account deficits

"No two elements of a set are identical" this statements is.

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Always true

Sometimes true

Not true

All of the above is possible

Environmentalist speak of wilderness as a.

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Animal hertage

Moralists heritage

Environmental heritage

World heritage

Arne Naes is a

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French philosopher

American philosopher

Norwegian Philosopher

Pakistani Philosopher

Which is the most volatile component of aggregate demand.

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Net exports

Consumption

Investment

Government spending

Which of the following is NOT an example of non price competition the auto industry.

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End of the year discounts

Zero percent auto loans

Television advertising

Establishing market niches

If the central bank buys financial securities in the open market to increase the monetary base, this is an example of.

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Lender of last resort

Financial intermediation

Open market operations

Financial regulation.

The market price of bonds can fluctuate depending on

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How many bonds were sold

Who bought the bonds

The amount of the coupon

The interest rate

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

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

Currency speculations is_________ if speculators bet against market forces that cause exchange functions, thus moderating such fluclutions.

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Destabilizing

Stabilizing

Inflationary

Deflationary

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

The quantity of money demanded varies

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Directly with both prices and output

Inversely with both prices and output

Directly with prices and inversely with output

Inversely with prices and directly with output

A system of systematically interrelated concepts definitions and propositions that are advanced to explained and product phenomena.

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Facts

Values

Theory

Generalization

"Although he didn't say so, this may ultimately compet the central bank to resort increasingly to managing the money supply by managing banks excess cash reserves the stuff from which the banks create loans". How would the central bank manages these excess reserves.

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By buying bonds

By selling bonds

By changing reserve requirements

All of the above

Under perfect competition, the price system automatically result in efficient output selection when

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MC = MR

MC = MU

P = ATC

P > AVC

If government spending of Rs. 10 and a lump sum tax of Rs.10 is added, the empirical equation for the new IS curve becomes.

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Y = 285 + 20 I

Y = 270 - 10 i

Y = 285 - 50 i

Y = 210 - o.5 i

If the Federal Reserve wishes to increase the money supply it should.

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Raise the reserve requirement

Raise the discount rate

Buy Treasury securities in the open market

All of the above

Anti dumping duties applied to imported goods.

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Are abolished by the world Trade Organization

Result in decreases in consumer surplus for domestic households

Are imposed by industrial countries but not developing countries.

Result in lower priced goods for domestic consumers

The largest source of tax revenue for the federal government is

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The prerenal income tax

The social security tax

the property tax

The sales tax

The exit of firms out of a competitive market causes the supply curve to.

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Shift leftward

shift rights ward

None of the above for the exit of firms supply curve

shift either left or right depending on the number of firms leaving the market

In 1992 foreign currency accounts were frozen due to economic sanctions imposed due to.

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a civil war

Law and order situation

Nuclear test

Social problems

Data that are verbal or other symbolic materials.

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Quantitate

Qualitative

Primary

Secondary

In the UK mergers can be referred to the competition commission of they create a firm with _______ of the market.

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15%

20%

25%

30%

When capital mobility is perfect, interest rate differentials will tend to be offset by

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Price differences.

Balance of payments differences.

Current account differences.

Expected exchange rate changes

If the determinant formed by the elements of the matrix is not equal to zero, then the matrix is called.

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Skew symmetric

Symmetric

Singular

Non -singular

An increase in total production causes the demand for money to _____ and the interest rate to ______

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Increase ; increase

Increase ; decrease

decrease ; decrease

decrease,; increase

Monetary expansion can still be effective in getting out of liquidity trap if it's combined with.

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Restrictions on bank loans

Increased taxes

Contractionary fiscal policy

Expansionary fiscal policy

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