Question # 1

Health of a country's economy is indicated by

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Number of doctors per 1,000 population

Per capital income

Literacy rate

None of the above

Which of the following macroeconomic variables is procyclical and lags the business cycle.

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Business fixed investment

Empolyment

Stock prices

Nominal interest rates

The warfare effect of a quota depend to a considerable extent upon.

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Who has the quota license

The size of the quota

Elasticities of domestic demand and supply

All of the above

In Production of goods and services tradeoffs exist becasue.

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Buyers and sellers often negotiate prices

Society has only a limited amount of productive resources

Not all production is efficient

Human wants and needs are limited at a particular point in time

The Hocksher Ohlin model rules out the classical model's basis for trade by assuming that. _______ is identical between countries.

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Factor endowments

Factor intensities

Technology

Opportunity costs

a x2 + bx + c = 0

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Linear equation

Quadratic equation

Polynomial of degree five

None of these

any number raise to the power zero is always equal to.

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zero

one

two

The number itself

There are __________ basic economic activities.

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2

3

4

5

What is the refers to any collection of specified group of human beings

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Sampling

Random sampling

Non probability sampling

Population

In the Keynesian cross diagram an increasing investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift ______ and the equilibrium level of aggregate output to rise and the IS curve to shift to the

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up ; right

up ; left

down ;left

down ; right

A decrease in the effective tax rate on capital would cause the IS curve to.

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Shift up and to the right

shift down and to the left

Remain unchanged

Remain unchanged if taxes are fully deducible from income otherwise, shift up and to the right

Which of the following could be a reason for the problem of lack of jobs being overestimated.

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the existence of disguised unemployment

People are underemployment

People holding only one job

The existence of child labour

A matrix with all elements zero other than all the diagonals is called.

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Diagonal matrix

Orthogonal matrix

Unit matrix

Column vector

In a "Lorenz curve diagram absolute equality in income distribution would appear as.

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A curved line well bowed out from the diagonal

A curved line close to the diagonal

A right angled line

A diagonal line

A demand curve shows that relation between price and demand.

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Positive

Negative

Zero

Very strong

Firms in perfect competition face a

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Perfectly elastic demand curve

Perfectly inelastic demand curve

Perfectly elastic supply curve

Perfectly inelastic supply curve

Which of the following index numbers is an important statistical concept in economic theory.

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Per capita income

Cost of living

Gross National product

Maximum Retail price

In order to 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

Which of the following is a characteristic of monopolistic competition.

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One seller serving the entire market

When each firm sells an identical product

When firms do not compete on a product quality price and marketing

When firms are free is enter and exit the market

If government spending of Rs. 10 and a lump sum tax of Rs.10 is added, the empirical equation for the new IS curve becomes.

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Y = 285 + 20 I

Y = 270 - 10 i

Y = 285 - 50 i

Y = 210 - o.5 i

One of the following is the renowned book of Imam Abu Yousaf

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Kitab ul khiraj

Kitab ul Anwal

Kitab ul Aloom

All of the sese

According to the cost based definition of dumping dumping occurs when a firm sets a product abroad at a price that is less than

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Average total cost

Average variable cost

Average foxed cost

Marginal cost

Which of the following strategies have developing countries not used to deal with the problem of unstable expert markets.

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Multilateral contracts

Production and export controls

Buffer stock arrangements

Tariff rate quotes

Which of the following is NOT characteristics of underdeveloped nations.

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Low per capita income

Low growth rate of GNP

General needs for substantive investment in the infrastructure

Low population growth rates

In a command economy

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The price mechanism acts as an incentive

Resources are allocated by market forces

Individual firms make decisions for themselves about what to produce and how to produce it.

The public sector is large

The gain from international trade are closely related to.

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the labor theory of value

How much the autarky price differs from international terms of trade change.

The fact that a country must lose from trade

All of the above

Scarcity means that

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We cannot have everything that we might want

We have to make choices between the things we desire.

There are costs to just about any activity we undertake

We must give up some thing in order to obtain other things.

All of the above are correct

Starting from a balanced budget, for a given tax rate an increase in income will cause the government budget to.

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Move into surplus

Move into deficit

Remain unchanged

None of these

In monopolistic competition, firms desire to sell more output at equilibrium because.

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Price is greater than average cost

Price is greater than average variable cost

Price is greater than marginal cost

Price is equal to marginal revenue

A inverse is defined only if A is a

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Square matrix

Column vector

Orthogonal matrix

Skew symmetric matrix

An increase in the quantity of money supplied shifts the money supply curve to the_______ and the equilibrium interest rate

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right ; falls

right ; rises

left ; falls

left ; rises

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