Question # 1

In order to maximize profits a monopoly company will produce that quantity at which the

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A marginal revenue equals average total cost

Price equals marginal revenue

Marginal revue equals marginal cost

Total revenue equals total cost

Currency speculations is_________ if speculators bet against market forces that cause exchange functions, thus moderating such fluclutions.

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Destabilizing

Stabilizing

Inflationary

Deflationary

In order of practice price discrimination which of the following is needed.

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Some degree of monopoly power

An ability to separate the market

An ability to prevent reselling

All of the above

In pure competition.

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Strong rivaled exist

Cartels are formed

Both a and b

None of thes

If there is a price floor there will be

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Shortages

Surpluses

Equilibrium

None of these

Which industrialization policy have developing countries used which places emphasis on the comparative advantage principle as agued rto resource allocation.

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Export promotion

Import substitution

International commodity agreements

Multiateral contracts

If there is a price celling, there will be.

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Shortages

surpluses

Equilibrium

None of these

There is positive relationship between multiplier and.

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Marginal propensity to consume

Marginal propensity to save

Marginal efficiency of capital

all of these

In oligopoly market seller are.

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Few

Four

Some

A large number

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

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Factor endowment theory

Product life cycle theory

Economies of scale theory

Overlapping demand theory

During the last eight years the per capita income in Pakistan has been

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Increasing substantially because of decline in population growth

Decreasing

increasing only marginally

Constant

Which of the following organization primely provides long term loans to developing countries to help them develop the infrastructure such as schools hospitals and roads.

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World Bank

International Monetary fund

Council on Foreign Relations

Organization of petroleum Exporting countries.

A purely monetary explanation of the business cycle is proposed by

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Hawtrey

Schumpeter

Hansen

None of these

The term of trade is given by the process.

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Paid for all goods exported by the home country

Received for all goods exported by the home country

Received for exports and paid for imports.

Of primary product as opposed to manufactured products.

The type of business in which an individual has unlimited responsibility for the debts of the organization.

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Partnership

Corporation

Monopoly

None of these

Expansion in money supply stems from.

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Increasing the cost of bank credit

Reducing availability of bank credit

Reducing the financial cost of bank credit

None of above

The locus of equilibrium of consumers due to changes in price of a commodity is known as.

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Price consumption curve

Income consumption curve

Producing possibility curve

None of these

If a country has linear production possibilities frontier than production is said to be subject to.

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constant opportunity costs

Decreasing opportunity costs

First increasing and the decreasing opportunity costs

Increasing opportunity costs.

Personal inocme is obtained by adding which items to national income

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Govt. transfer payments

Business transfer payments

Both a and b

None of these

Devaluation leads to.

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Increase in imports

Increase in exports

Decline in imports

None of the above

All economic model ae based on

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Realistic assumptions

Assumptions which can never be perfectly realistic

Unrealistic assumptions

None of the above

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