Question # 1

When the price of a pizza decreased from 1200 Rupees to 1000 Rupees, it is definitely the case that the.

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Income effect means people buy less pizza

Substitution effect means people buy more pizza

Quantity demanded of pizza will not change

None of the above

The participation rate in the labour force is affected by

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Higher real wages

Lower fixed costs of working

Lower non labor income

All of the above

If all the elements of a matrix of any order are zero, it is called.

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Identity matrix

Null matrix

Zero matrix

Both b and c

If a good has a lot of substitutes, then its demand is.

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Elastic

Inelastic

Unit elastic

Elastic or inelastic depending on whether the price is increasing or decreasing

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

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

Who defined research is a systematic development of logically related prepositions.

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Black and champion

comet

Weber

Morry

A government might use tax to.

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Discourage consumption of positive externalities

Discourage consumption of public goods

Discourage consumption of merit goods

Discourage consumption of negative externalities

"Null set is proper subset of all the non nul sets" this statement is.

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Always true

sometimes true

Never true

True subject to some conditions

Following banks were again privatized by Nawaz Sharif

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Allied Bank

Muslim Commerciale bank

None of these

Both a and b

Quotas are government imposed limits on the ________ of goods trade between countries.

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Prices

Quantity

Revenue

Costs

According to the quantity theory of money an increase in the money supply is most likely to lead ot inflation if

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The velocity of circulation decreases

The number of transactions decreases

There is deflation

The velocity of circulation and the number of transactions is constant

What does the phrases "there is no such thing as a free lunch'mean"

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Individuals must always pay money for the food the eat.

No restaurant wner will provide food to patrons unless they pay her

Restaurant owners act selfishly

Consumption of any good requires that other goods be given up

Which of the following is an example of a productivity shock.

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The introduction of new management techniques

A change in taxes on corporate profits

A change in the level of government transferors

An increase in the money supply

MRSxy being 6 means

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Consumer is willing to give up 6 units of x for one of y

Preference for y is 6 times that of x

Both of the above

None of these

The "Law of demand" states that other things remaining the same the quantity demanded of any good is.

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Directly related to its price

Positively related to its price

Inversely related to its price

Directly elated to the supply of the good

The total multiplier for the economy will reflect.

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MPC and MPT

MPT and MPZ

MPC and MPZ

MPC, MPT and MPZ

Which of the following is the second law of gossen.

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Law of equal marginal utility.

Law of equi product

Theory of indifference curve

Law of diminishing marginal utility.

In the short run an increase in the quantity of money ______ real GDP and _ the price level.

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increases ; raises

does not change ; lowers

decreases ; raises

decrease ; lowers

a x2 + bx + c = 0

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Linear equation

Quadratic equation

Polynomial of degree five

None of these

When oligopolistic firms interacting with one another each choose their best strategy given the strategies chosen by other firm in the market we have

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A cartel

The perfect competitive outcome

The Nash equilibrium

Monopolistic competiton

Fractional unemployment arises when

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Unskilled or low skilled workers find it difficult to obtain desirable long term jobs

Labor must be reallocated from industries that are shrinking to areas that are growing.

Workers must search for suitable jobs and firms must search for suitable workers.

Output and employment are below full employment levels

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

Foreign capital formation includes

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Foreign direct investment

Grants

Loans

All of these

A major advantage of monetary over fiscal policy is that monetary policty.

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Can be put into effect more quickly

Affects all sectors of the economy equally

Authorities are quicker to see the need for policy

Has a more direct and predictable impact on spending.

The conditions necessary for a firm to be able to price discriminate include.

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Segment able markets

Difference in price elasticity of demand among the segments

The inability of customers to transfer products

All of the above

Which of the following is not one of the basic economic questions.

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What is produce

Who to produce for

How to produce

How to maximize economic growth

International trade is based on the idea that

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Exports should exceed imports

Imports should exceed exports

Resources are more mobile internationally than are goods

Resources are less mobile internationally than are goods

National Income account of Pakistan have registered GDP & GNP as.

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GDP = GNP

GDP < GNP

GDP > GNP

GDP / GNP

The economic growth model of Ricardo based on.

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Capital formation

Diminishing retune

Capital output ratio

None of these

An important feature of a___ is that the holder has the right , but not the obligation, to buy or sell currency

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Swap

Foreign exchange arbitrage

Foreign exchange option

Futures market contract

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