Question # 1

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 statements is true about platykurtic curve as compared to normal curve.

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Flatter

Broader central position

Lower tails

All of the above

The theory that is equilibrium workers wages will barely be adequate for biological needs is knows as the.

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Labor theory of value

Convergence hypothesis

Subsistence theory of wages

Indicative planning model

As long as the principle of diminishing marginal utility is operating any increased consumption of a good.

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Lowers total utility

Produces negative total utility

Lowers marginal utility and therefore total utility

Lowers marginal utility, but may raise total utility.

The investment demand curve shifts right ward if

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The real interest rate falls

Savers increase their thriftiness

The expected profit rate increases.

The economy moves into a recession

A market is in equilibrium when

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Ac = P

MC = MR

AC =AR

TC =TR

Foreign direct investment is made on

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Friendly basis

social basis

Commercial basis

Humanitarian basis

Economic growth can be measured by

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The CPI

The CBI

GDP

MPC

Intra industry trade therory.

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Explains why the United States might export autos and import clothing

Explains why the united states might export and import differentiated versions of the same product such as different type of autos.

Assumes that transport costs are very low or do not exist

Ignores seasonal considerations for agricultural goods

Case study may be a source of hypothesis of.

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Future research

Research design

Content analysis

Intensive study

A shift in tastes loward foreign goods______ net exports and causes the quantity of aggregate output demanded to.

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decreases ; rise

decreases ; fall

increases ; rise

increases ; fall

Research design indicate a plan of action to be carried out in connection with a proposed.

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Research proposal

Research methodology

Research abstract

Research work

Firm A's margin of safety is.

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0.10

0.40

0.20

0.30

Demand for a normal product may shift outwards if.

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Price decreases

The price fo a substitute falls

the price of a complement rises

Income falls

According to M.P Todaro model of ruler -urban migraton the migrationis assumed to be a.

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Social phenomenon

Cultural phenomenon

Uneconomic phenomenon

Economic phenomenon

Developing economics usually have

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Low GDP per captia

Low CPI

Large balance of payments surpluses

Large budget surpluses

Absolute advantage is determined by

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Actual difference in labor productivity between countries.

Relative difference in labor productivity between countries.

Both a and b

Neither a nor b

A tax of 20 cents per unit of imported cheese would be an example of a

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Compound tariff

Effective traiff

Ad valorem tariff

Specific tariff

In long run a reduction in labor supply would cause output to __ and the aggregate price level to.

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fall ; rise

fall ; fall

rise ; fall

rise ; rise

Given fixed exchange rates assume Pakistan initiates contractionary monetary ad fiscal policies to combat inflation. these policies will also.

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Reduce a balance of payments surplus

Reduce a balance of payments deficit

Increases both imports and exports

Decrease both imports and exports

The definition of various terms, units of collection and measurement help ensuring that.

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Analysis is easy

Method is systematic and emprical

Construction of conclusions easy

Data is relevant to the purpose

A firm's monopolistic position is strengthened by

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low elasticity of demand for its product

High elasticity of demand for its product

Constant elasticity of demand

None of the above

The IS curve shows the combinations of output and the real interest rate for which.

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The goods market is in equilibrium

The labor market is in equilibrium.

The financial assets market is in equilibrium

An increase in output will cause the market clearing interest rate to be bid up.

A monopoly may be self perpetuating because profits may be used for

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research

Cost saving

Technical advance

All of the above

A purely monetary explanation of the business cycle is proposed by

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Hawtrey

Schumpeter

Hansen

None of these

The costs of disinflation would be low if

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Expected inflation falls as inflation falls

Wages and price controls were used

The Phillips curve were nearly horizontal

The Phillips curve adjusted slowly to changes in inflation

Disposable income is.

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Income less taxes

Income less direct taxes

income less indirect taxes

All of these

When a market is contestable , incumbent firms must.________ to avoid the entry of new competitors.

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Behave like competitive firms

Agree to act together

Differentiate their products

Practice price discrimination

A disadvantage of the barter system is that

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No trade occurs

People must produce all their own food clothing and shelter

The opportunity to specialize is greatly reduced.

Gold is the only unit of account

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%

Which does the government not control directly.

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Spending on health

spending on defense

Firm's investment decisions

spending on education

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