Question # 1

A depreciation of currency occur when

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The value of the currency falls

The value of the currency increases

Inflation falls

The balance of payments improves

If a firm not operating at the output necessary to achieve al scale economies it has not achieved its.

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Efficient scale

Average efficient scale

Maximum efficient scale

Minimum efficient scale

Marginal revenue is the ________ when output is.

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Change in average revenue, inversed.

change in total revenue, increased by one unit

change in average revenue, increased by one unit

Change in total revenue, incresed.

Which does the government not control directly.

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Spending on health

spending on defense

Firm's investment decisions

spending on education

Which of these are nicknamed as Breton wood twins.

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IBRD AND IDA

IBRD AND WTO

WTO AND IMF

IMF AND IBRD

In the Keynesian cross diagram, an expenditure causes the aggregate demand function to shift _________ and the equilibrium level of aggregate output to.

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up ; rise

up ; fall

down ; rise

down ; fall

In a free market

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Government intervene

Government plan production

Government interfere

Price adjust to reconcile scarcity and desires.

An increase in price causes an increase in total revenue when.

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Demand is elastic

Demand is inelastic

Demand is unit elastic

All of the above are possible

Economists use the term utility to mean

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The value of a product before it has been advertised

The satisfaction a consumer obtains from a good or service

any characteristic of a good or service which cannot be measured

The contribution a good or service makes to social welfare

Policy of nationalization was adopted in the period of.

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Z.A. Bhutto

Nawaz Sharif

Zia ul Haq

All of them

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

Less demand in the economy may increase unemployment this may lead to less spending which may reduce demand further This is called.

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The upward accelerator

The downward multiplier

The upward PPF

The downward MPC

The hidden momentum of population growth is caused by

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the demographic transition

Population age structure

the opportunity coast of woman's time

Children contribution to income

Import quotas tend to result in all of the following except.

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Domestic producers of the imported good being harmed

Domestic consumers of the imported good being harmed

Prices increasing in the importing country

Price failing in the exporting country.

GDP difference between GNP because.

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GDP = GNP - net factor payments from abroad

GNP = GDP -net factor payments from abroad

GDP = GNP -capital consumption allowances

GNP = GDP -capital consumption allowances.

How many stock exchanges are there in Pakistan.

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2

3

4

5

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

Aggregate output and the interest rate are ______ related to government spending and are ___ related to taxes.

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Positively ; positively

Positively ; negatively

negatively ; positively

negatively ; negatively

In the theory of the firm profit maximization is always synonymous with.

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Profitability

Economic profit making

maximization of the sales revenue

None of these

An expansionary monetary policy

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Reduces interest rates

Increases real output

Shifts the LM curve to the right

All of the above

Secondary activities

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Services

Production

Raw materials

All of these

Suppose there is full employment and a neoclassical aggregate supply schedule A 105 increases in the nominal money supply.

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Has no effect upon the price level

Increase the rate of interest

Increase the nominal wage 10%

Increase the real money supply 10%

The ABC corporation.

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Is earning a pure economic profit

Should produce zero units of output

Is sustaining an economic loss

Is breaking even

Keynes suggested that ________ income households consume a ____ proportion of their income than ____ income households.

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Low ; smaller ; high

Low ; larger ; high

low ; smaller ; middle

High ; larger ; low

Money must fulfill all of the following functions except.

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Be a medium of exchange

Be a store of value

Be generally accepted as a means of purchasing commodities

The above are all functions of money

If the price of factor A is Rs.8.00 per hour, and its marginal product is 10 units, and the price of factor B is Rs. 5.00 and its marginal product is 9, is the producer is likely to.

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Hire more of A and less of B

Hire more of B and less of A

Start paying factor A more

Try to use factor B more productively

A determinant composed of all the first order partial derivatives of a system of equations, arranged in ordered sequence is called.

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Hassian determinatn

Jacobian determiant

Discrimianant

First order determinant

Given a proportional income tax and a government budget that is currently in balance, an increase in autonomous investment , caters parabasal increases equilibrium income and the budget.

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Romaic's in balnce

Has a surplus

Has a deficit

None of these

The firms long run output decision will be where.

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Long run average cost a lowest

Marginal revenue equals output

Marginal revenue equals long run marginal cost

Marginal cost equals output

The fact that the Production function relating output to capital becomes flatter as we move from left to right means that.

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The marginal product of labor is positive

The marginal product of capital is positive

There is diminishing marginal productivity of labor

There is diminishing marginal productivity of capital

Say's law states that

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Supply creates its own demand

Demand creates its own supply

There is no such things as a free lunch

Macro economics policy activism is essential to ensure full employment.

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