Question # 1

The resources in an economy are

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Constantly increasing

Fixed at any moment

Constant decreasing

Able to be transferred easily between industries

In perfect competition, a seller by increasing price.

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Sell more

Produce its revenue

Decrease cost

Sell nothing

When the price level increases 25% starting from a price level equal to 100, a Rs. 1000 bond will have a real value of .

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Rs. 800

Rs.1250

Rs.750

Rs.666

An outward shift in the marginal efficacy of capital should.

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Decrease consumption

Increase aggregate demand

Reduce aggregate supply

Slow economic growth

Who own the random number table which comprising of 15,000 digits arranged in twos.

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Kendall and B,B. Smith

L.H.C. Tippet

British Census report

Fisher and Yates

When desired national saving equals desired national investment what market is in equilibrium.

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The goods market

The money market

The foreign exchange market

The stock market

Two commodities are considered to be perfect substitutes for each other if the elasticity of substitution is

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Positive

Negative

Infinite

None of these

Economists use the phrase ceteris paribus to express the assumption.

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All else equal

Everything affects everything else.

Scarcity is a fact of life

There is no such thing as a free lunch

The equilibrium inflation rate is determine by the intersection of __________ and ___

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demand, supply

IS , LM

AD, AS

Labour demand, labour supply

Total utility of a commodity is measured by which price of that commodity.

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Value in use.

Value in exchange

Both of above

None of above

Suppose your company is in equilibrium will its capital stock at its desired level A permanent increase in the depreciation rate now has what effect on your desired capital stock. i

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Raises it because the future marginal productivity of capital is higher

Lowers it because the future marginal productivity of capital is lower

Raises it because the user cost of capital is now lower

Lowers it beacause the user cost of capital is now higher

The demand curve of unitary elastic commodity is.

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Rectangular hyperbola

Parabola

Straight line

None of these

In the classical model of Ricardo the direction of trade is delemined by.

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Absolute advantage

Comparative advantage

Physical advantage

Which way the wind blows

The idea that the money supply should change to accommodate changes in aggregate demand is associated with the ideas of.

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Milton Friedman

Ronald reagan

Margaret Thatcher

John Maynard Keynes

Normative economics form ______ based on.

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Positive statements facts

Opinions, personal values

Positive statements values

Opinions facts

A tax 15 percent per imported item would be an example of a

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Ad valorem tariff

specific tariff

Effective tariff

Compound tariff

If each element of a raw or column is a sum of two elements, the determinant can be expressed as the

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Sun of two determinants

Difference of two determinants

Multiplication of two determinants

Division of two determinants

If the State bank of Pakistan wished to pursue a light monetary policy it would.

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Lower the required reserve ratio and the statutory liquidity ratio.

Lower interest rates

Buy government securities on the open market

Sell government securities on the open market

Over a two year period your income has increased 10% At the same time the consumer price index has increased 205 Your real purchasing power is.

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92% of the original value

50% of its original value

Not affected by the price change

109% of its original value

Head quarter of general Agreement on Tariffs and trade is located in.

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Geneva

Paris

Vienna

None of these

Factor that cause the IS curve to shift include.

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Change in autocoups consumer spending

Change in taxes

Change in government spending

All of the above

The oldest basis of existence all over the world was.

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Fishing

Farming

Both a and b

None of these

Which of the following best describes the selling of a production license to another firm.

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Hands over all rights to its products

Sells its products abroad

Sells the right to produce to another business

Sells the business to another business

Under land reforms celling of land was set as 150 acres of Un irrigated land by

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Zial ul Haq

Z.A.Bhutto

Nawaz Sharif

None of these

An increase in the expected future marginal product of capital would cause the IS curve to.

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Shift up and to the right

Shift down and to the left

Remain unchanged if firms face borrowing constraints otherwise shift down and to the left

Remain changed

Why is the law of diminishing marginal returns ture.

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Specialization and division of labor

Spreading the average fixed cost

Limited capital

All factors being variable in the long run

A good example of a public good is.

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Public transport

National defense

The national health service

Rail transport

In cartels.

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Firms complete against each other

Price wars are common

Firms use price to win market share from competitors

Firms collude

Which method is used for finding inverse of a matrix.

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Gauss elimination method

Henrich standard method

Co factor method

Both a and c

In a fixed exchange rate regime, the central bank will intervene by __ pounds to ______ the exchange rate.

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Selling, increase

buying , increase

selling, reduce

both b and c

What tow factors should you equate in deciding how many workers to employ.

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The marginal product of labor and the marginal product of capital

The marginal product of labor and the real wage rate

The marginal product of labor and the real interest rate

The marginal product of capital and the real wage rate

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