Question # 1

If a country has a bowed out production possibility frontier then production is said to be subject to.

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Constant opportunity costs

Decreasing opportunity costs

First increasing and than decreasing opportunity costs

Increasing opportunity costs

During the 1980 empirical evidence indicates that.

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Poverty re emerged in Pakistan

Good growth brought down poverty in Pakistan

Poverty situation showed no change

None of the above

Indifference curve approach is also called.

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Law of diminishing marginal utility

Law of substitution

Ordinal measure approach

None of these

Following the work of _____________ in the 1960s, and the controversy associated with these views in the 1970s, there was a revival of interest by economists and government in monetary policy.

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Milton Friedman

Ronald Reagan

Margaret Thatcher

John Maynard Keynes

The fundamental economic problem faced by all societies is.

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Unemployment

Inequality

Poverty

Scarcity

The nominal interest rate minus the inflation rate is the

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Depreciation rate

Discount rate

Forward rate

Real interest rate

According to the .A.H Hasen the capitalistic economy is basically characterized with

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Instability

Stability

Inefficiency

Efficiency

If GNP of Pakistan nees it wil encourage

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Exports goods

imports goods

Both a and b

None

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

The use of micro economics policies to smooth or moderate the business cycle is known as.

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Aggregate demand management.

Aggregate supply management

Automatic stabilization

Discretionary policy

If the price is less than the average cost but higher than the average variable costs.

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The firm is making a loss and will should own in the short term.

The firm is making a profit.

The firm is making a loss but will continue to produce in the short term

The firm is making a loss and is making a negative contribution to fixed costs

If the columns of a given matrix A and B are changed into rows and vice versa, the matrix thus obtained is called the.

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Symmetric matrix

Transpose of a matrix

Singular matrix

Rank of matrix

Which of the following is a characteristic of pure monopoly.

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one seller of the product

Low barriers to entry

Close substitute products

Perfect information

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

Un employment Rate is a percentage relation with reference to.

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Total population

Civilian Labour force

employed persons

Unemployed persons

"An Enquiry into the Nature and causes of wealth of Nations" is thebook of economist.

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Adam smith

Marshall

Robbins

None of above

Under system fixed exchange rates which of the following policies promotes internal balance for a nation.

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Fiscal policy

Monetary policy

Both fiscal policy and monetary policy

Neither fiscal policy nor monetary policy

A system of systematically interrelated concepts, definitions and propositions that are devanced to explain and predict phenomena define dby

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Jack gibbs

PV Young

Black

Roae Arnold

Total Share of agricultural sector in employment is.

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60%

43%

55%

None of these

Current account deficits are offset by

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Merchandise trade deficits

Merchandise trade surpluses

Capital /financial account surpluses

Capital /financial account deficits

It is the collection of data concerning the living and working conditionals of the people in a given community

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Samplin g

Case study

Social survey

Data collection

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

Who defined research is a systematic, controlled, empirical and critical investigation.

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Spencer

Weber

Kerlinger

Morry

Economics assumes that people consume goods and services to achieve.

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Status

Prestige

Utility

Self esteem

According the Keynes when the great depression started , the government should have.

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Done nothing

Decreased the money supply

Had a large increase in government spending.

Enacted high tariffs, such as the smoot Hawley tariff

The determinant of a matrix and that of its transpose are

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Equal

Zero

One

Negatively related

Who defined research is an organized enquiry.

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Kerlinger

Emory

Mony

Redman

If a monopolist faces a downward sloping market demand curve its.

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Average revenue is always less than marginal revenue

Marginal revenue is greeter than the price of the units it sells.

Average revenue is less than the price of its product.

Marginal revenue is always less than the price of the units it sells

Skills that embodied in a person are called

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Human capital

Emboded skills

Physical capital

Expeneces skills.

If a maximum price is set below equilibrium there will be.

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A price fall

A price increase

Excess supply

Excess demand

Money's primary role in the economy comes from the benefits of lowering transactions costs and allowing specialization This function of money is called.

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Store of value

Medium of exchange

Standard of deferred payment

Unit of account

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