Question # 1

Assume a cosumer buys 25 units of good X at Rs.8 and 10 units of good Y at Rs. 6 in 1980. If Px = Rs. 6 and Py = Rs. 4 in 1970 the pasasche index is.

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1.14

1.65

1.37

1.47

In the period of Zia ul Haq the nationalized enterprises went on.

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Loss

Profit

Developing

None of these

An ethics that treats only humans as morally considerable is called.

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Holism

Eco centrism

Anthropocentrism

None of these

If the price of automobiles were to increase substantially the demand curve for gasoline would most likely

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Shift leftward

Shift right ward

Become flatter

Become steeper

Which of the following taxes is regressive.

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The Federal income tax

The state income tax

The sales tax

The Medicare tax

The law of demand states that.

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As the quantity demanded rises, the price rises.

As the price rises the quantity demanded rises

As the price rises, the quantity demanded falls.

As supply rises, the demand rises.

Suppose the government provides a tax cut today that is matched by a tax increase in the future that's equal in present value to the tax cut This causes a consumer's saving to.

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Decrease

Increase

Remain unchanged

Increase if the person was a lender and decrease if the person was a borrower

In 1950's liberal policy was adopted regarding.

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Export

Imports

Both

Non

The law of inertia of large numbers means.

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Opposite of the law od statistical regularity.

Same to the law of statistical Regularity

Sample in large numbers create big variations in results.

opposite to the mathematical theory of probability

A single value that represent the average characteristics of tis frequency distribution.

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quarterlies

Grouped data

Central tendency

Range

Consider the five panels of the figure on the previous page in which panel would fiscal policy be the strongest.

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Panel b

Panel c

Panel a

Panel d

According to Karl Marx, revolution would inevitably come from the opposed workers, known as the

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Proletariat

Paricians

Bourageoise

Panaces

Automatic stabilizers

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Counter balance fluctuations in economic activity.

Reinforce fluctuations in economic activity

Do not occur when the economy falls into recession

Reduces the size of the deflationary gap

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

When planned saving equals Rs.40+0.20 Yd and planned investment is rs. 60, the equilibrium level of income in.

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Rs. 100

Rs. 400

Rs.500

Rs.1000

A cut in the income tax rate designed to encourage household consumption is an example of.

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Expansionary demand side policy

Contractionary demand side policy

Expansionary supply side policy

Contractionary supply side policy

Unknown values in an equation are called.

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Constants

Numeraire

Variables

All of the above

What does Social Researchers seek out of vast and confusing variety of individual characters.

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Generalizations

Decisions

Single events

group characteristics

Gender is categorized as

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Nominal data

Ordinal data

Interval data

Ratio data

In the money market a condition of excess demand for money can be eliminated by a __________ in aggregate output or a ____ in the interest rate both of which reduce the quantity of money demanded.

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rise ; rise

rise; fall

fall ; rise

fall ; fall

Over time the price of primary products tends to fall because.

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Demand is income elastic

Supply is income elastic

Of outward shifts in supply

Demand is price elastic

Research is directed towards the solution of immediate , specific and practical problem is called.

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Basic

Applied

Diagnostic

Descriptive

Which of the following groups is most hurt by unexpected inflation.

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Workers with cost of living adjustments in their labor contracts

Home owners

People with large debts to pay for their homes and cars

People with large retirement savings held in savings accounts.

A monopoly there is

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No difference between firm and industry

A few firms

Lot of firms

none of these

Which provides the best explanation of the failure of many poor countries to experience economic growth as rapid as the rich countries..

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Classical growth theory

Neoclassical growth theory

New growth theory

Market failure

During period of inflation

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Those people who have fixed incomes benefit

Every one's real income falls

those people who enter long term wage agreements benefit

Those people whose real income rises faster than the general price level benefit

Which theory is generally included under micro economics.

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Price theory

Income theory

Employment theory

None of the above

A negative definite Hessian fulfills the second order conditions for.

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Maximum

Minimum

both maximum and minimum

Mini max

Which policy is an expenditure switching policy.

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Increase in the money supply

Decrease in government expensitures

Increase in business and household taxes

Decrease in import tariffs

Economic development can be achieve through stages, is the theory of.

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Rosenstein Rodan

Leibstein

W.W. Rostow

M.P. Todaro

The economic logic behind granting central bank's independence from governmental the conduct of monetary policy is.

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To eliminate seignior age

To allow open market operations

To enhance the credibility of monetary policy.

None of the above

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