Question # 1

In autarky when a community maximizes its standard of living its production points is.

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Below the production possibility frontier

On the production possibility frontier

Above the production possibility frontier

Can't tell without more information.

Aggregate demand without a foreign sector is the sum of.

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c+1

C+G

1+G

C+!+G

Firms are assumed to ____ costs and to _______ profit.

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Incur , desire

Pay ; make

Change ;earn

Minimize ; maximize

Law of demand is not applicable on

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Daily goods

Scarce goods

Consumer goods

Producer goods

Art gallery argument give emphasis to aesthetic aspect of.

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Diversity

Nature

Life

None of these

Economics given can be shown by

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An inward shift of the production possibility frontier

A movement down the production possibility frontier

An outward shift of the production possibility frontier

A movement up the production possibility frontier

Which is the most volatile component of aggregate demand.

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Net exports

Consumption

Investment

Government spending

The gift exchange motive suggests that

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Workers value benefits like health insurance more than job security

Workers prefer a nice work environment even if they must accept lower wages.

Workers who feel well treated will work harder and more efficiently

Workers will shirk if they are paid a low wage

Inferential statistics is the branch of statistics which helps in inferring.

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Sample value

Population value

Botha a and b

None of these

As long as all prices remain constant an increase in money income results in.

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An increase in the slope of the budget line

A decrease in the slope of the budget line

An increase in the intercept of the budget line.

a decrease in the intercept of the budget line.

We cannot say whether one allocation of resources is better than another allocation because.

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some people cant count

Some people may not be permanent residents

Not all economic activity is legal

We cant make value judgements to compare different people welfare.

A activates which do not promote human welfare cannot be encouraged.

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Western estate

Police state

Islamic estate

None Islamic estate

According to the Hackscher - Ohlin model the source of comparative advantage is a country's

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Technology

Advertising

Factor endowments

both a and c

Which of the following would qualify as an aggregate supply shock.

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An unexpected increase in oil prices

Seasonally expected increase in oil prices

An unexpected reduction in consumer confidence

an anticipated tax cut

Which of the followig does not shift the IS curve .

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An increases in autonomous consumption

An increase in government spending.

A decline in government spending

A fall in theinterest rate

What is the characteristic of the sample which is selected randomly.

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It is not average of the whole

It would be representative

It would not be equal to the population

All of the above

In Balance of payments accounting tourism and travel are classified in the

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Merchandise trade account

Services account

Unilateral transfers account

Capital account

Which of the following is not included in gorses investment.

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Business and residential constrcution.

Expenditures on consumer goods

Additions to business inventory

Expenditures on machinery

A decline in the value of the rupee makes Pakistan goods cheaper relative to foreign goods, resulting in a _________ in net exports and a ________shifts of the IS curve.

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fall ; leftward

rise ; leftward

fall ; rightward

rise ; rightward

Skills that can be transferred to other employers are called

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General skills

Specific skills

Non pecuniary skills

None of these

Which of the following actions is an example of expansionary fiscal policy.

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A decrees in welfare payments

A purchase of government scantiest in the open market

A decrease in the Bank rate

A decrease in the corporate profits tax rates

An increase in price all other things unchanged leads to.

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A shift in supply out wards

A shift in supply in wards

A contraction of supply

An extension of supply

In the EMU a country's competitiveness can change because of.

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Interest rate adjustment

Central bank intervention i the forex

Domestic wage and price adjustment

Devaluations

Duopoly is a market situation when there is

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Single seller

Many seller

Two seller

Few seller

(A+B) + C =a +(B+C) This law of matrices is known as.

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Cumulative law

Associative law

Distributive law

Identity law

That the division of labor is limited by the size of th market best applies to which explanation of trade.

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Factor endowment theory

Product like cycle theory

Economics of scale theory

Over lapping demand theory

A diagonal matrix whose diagonal elements are equal is called.

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Unit matrix

Singular matrix

Scalar matrix

Non singular matrix

An increase in investment is most likely to be caused by.

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Lower interest rates

Lower national income

A decreasing the marginal propensity to consume

An increase in with drywalls.

Export led growth strategies tend to emphasize.

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Resource allocation based on the principle of absolute advantage.

Resource allocation based on the principle of comparative advantage.

Trade protection for exporting competing firms

Trade protection for import competing firms

A linear function of the form 6x2 - 2y + 8 = 0 is known as.

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Explicit function

implicit function

Quadratic function

All of the above

To move from point E to point E1 is consistent with.

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Expectations of a constant price level

Adaptive expectations that have no adjustment for the period immediately following a change in the actual price

Rational expectations and NCM

A and B

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