Question # 1

The least common type of transaction in the foreign exchanges is a.

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Forward transaction

Spot transaction

Swap transaction

None of the above

The set which contains all the element of the two given sets A and B, avoiding duplication, is called.

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Intersection of A and B

Union of A and B

Set A and B

None of these

Theories of surplus labor describe that

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In UDCs unemployment rate is high

The margin productivity labor is near to zero

Overpopulation is much more in UDCs

DCs have less uemployment

If matrix A is of m x n dimension, then A will be

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n x m dimension

m x n dimension

n x p dimension

m x m dimension

The imposition of a tariff causes consumption to _______ and imports to.

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rise , rise

fall , rise

fall , fall

rise , fall

The equilibrium level of saving is.

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Rs.120

Rs.75

Rs.40

Rs.80

The main source of interest profits for banks is.

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Checking account fees

Loans

Government securities

Savigng accounts

For a competitive firm the demand curve

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A horizontal

Coincides with the marginal revenue curve

Coincides with the average revenue curve

All of the above

The opportunity cost of holding currency decreases when.

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Income decreases

The interest rate on bonds decrease

Buying newly issued government bonds directly from the central bank

Buying newly issued government bonds directly to the central bank.

All of the following are types of imperfect competition except

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Monopolistic competition

Oligopoly

Monopoly

Unfair competition

A specific tax on sellers will

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shift the demand curve to the right

Shift the demand curve the left

Shift the supply curve to the right

Shift the supply curve to the left

Free trade is based on the principle of

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Comparative advantage

Comparative scale

Economics of advantage

Production possibility advantage

Characteristics of economic laws are

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Mere statement of economic tenduencies

Less certain

Hypothetical

All of the above

Employment tends to _______ whwn aggregate output.

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rise, falls

rise ; rises

falls; rises

Not change ; falls

The relationship between the exchange rate ad the prices of tradable goods is known as the.

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Purchasing power parity theory

Asset markets theory

Monetary theory

Balance of payments theory

The bowed shape of the production possibilities curve illustrates

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The law of increasing marginal cost

the production is inefficient

the production in unattainable

The demand is relatively inelastic

Riskless transactions to take advantage of profit opportunities due to a price differential or a yield differential in excess of transaction costa are called

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deferential actions

Cash transactions,

Arbitrage

Forward transactions

A decrease iin money demand other thing equal shifts the _____ curve to the

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IS ; right

Is ; Left

LM ; Left

LM ; Rfight

Projects A,B,C,D,E cost Rs. 100, Rs, 200, Rs. 300, Rs. 400, and Rs. 500 with MEC's of 0.07, 0.06,0.09 ,0.10 and 0.11 respectively. The market rate of interest is 8% Total investment spending is

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Rs. 1500

Rs.1300

Rs.1200

Rs.300

Which of the following does not apply to pareto efficiency.

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Consumptive efficiency

Productional efficiency

Allocative efficiency

Equity

Where there is an equal increase in net tax revenue and government spending, ceteris paribus.

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(C+I+G) is shifting upward

(C+I+G) is shifting downward

(C+I+G) does not shift

All of these

In 1992 foreign currency accounts were frozen due to economic sanctions imposed due to.

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a civil war

Law and order situation

Nuclear test

Social problems

If tastes are identical between countries than comparative advantage is determined by

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Supply conditions only

Demand conditions only

Supply and demand conditions

Can't tell without more information.

Which of the following rights be a scarce good.

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Love

faith

Self control

All of above

An autonomous decline in the value of the Pakistan Rupee makes Pakistan goods _______ relative to foreign goods and results in a ______ in net exports.

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Cheaper ; decline

Cheaper ; rise

dearer ; decline

dearer ; rise

The supply curve of a perfectly competitive firm

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Includes the upward sloping portion of the marginal cost

Is equal to entire margin cost

Includes the downward sloping portion of marginal cost

None of these

With no government and foreign trade sectors savings always equals.

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Intended investment

Realized investment

Botha a and b

None of these

The supply of foreign currency tends to be

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Upward sloping

Down ward sloping

Vertical

Any of the above

In Vann diagram the universal set is represented by

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Points within a rectangle

Points within a circle

Both a and b

None of these

The current account includes

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The value of trade in merchandise

Services

Unilateral transfers

All of the above

Which of the following is not included in gorses investment.

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Business and residential constrcution.

Expenditures on consumer goods

Additions to business inventory

Expenditures on machinery

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