Question # 1

The low productivity of capital in Pakistan is due to.

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Low income

Low saving

Limited capital market

All of these

In the Keynesian cross diagram a decline in autonomous consumer expenditure causes the aggregate demand function to shift down The equilibrium level of aggregate output to ___________ and the IS curve to shift to the

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rise,; left

rise ;right

fall ; left

fall ; right

If a country has a bowed out production possibility frontier then production is said to be subject to.

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Constant opportunity costs

Decreasing opportunity costs

First increasing and than decreasing opportunity costs

Increasing opportunity costs

Cash crops cover nearly ____________ of the cropped areas

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25%

55%

15%

35%

Who defined research is an organized enquiry.

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Kerlinger

Emory

Mony

Redman

Labour has the following characteristics accept one.

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It cannot be separated form labourer

It cannot be stored

Its supply cannot be increase at once

Bargaining power of laborer is very strong

The concept of unbaled growth and balance growth are.

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Unlimited value

Single value

Limited value

Short value

Which of the following characteristics if Islamic economic system is true

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An Islamic state is essentially a welfare state.

Ensure social justice

All economic problems are solved in the light of moral values

All of the above

The long run is a time period that is.

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Five years or longer

Long enough to change the level of labor hired

Long enough to change the size of the firm's plant

Ten years or longer

Friend man's theory of consumption focuses on

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Past income

Current income

Disposable income

Permanent income

A tax increase __________ disposable income ____ consumption expenditure and shifts the IS curve to the.

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Increase; increases ; right

Increase ; decreases ; left

decreases ; increases ; left

decreases ; decreases ; left

As long as the principle of diminishing marginal utility is operating any increased consumption of a good.

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Lowers total utility

Produces negative total utility

Lowers marginal utility and therefore total utility

Lowers marginal utility, but may raise total utility.

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

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Prices

Quantity

Revenue

Costs

A decrease in fully autonomous investment other things equal shifts the ______ curve to the

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IS ; right

IS ; Left

LM ; Left

LM ; right

Aggregate demand will increase if

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Consumption falls

Investment falls

Exports fall

imports fall

What is the characteristic of the sample which is selected randomly.

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It is not average of the whole

It would be representative

It would not be equal to the population

All of the above

Your checking account is

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An asset for you and a liability for your bank

A liability for you and an asset for your bank

An asset for both you and your bank

A liability for both you and your bank

A firm that is a price taker faces a perfectly

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Elastic supply curve

Inelastic demand curve

Elastic demand curve

In elastic supply curve

Company X sells Rs.75 million dollars of 9.5% first mortgage bonds at par The company's marginal tax rate to 30% The after tax cost of debt is.

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2.85%

3.175

6.68%

7.55

The marginal product of labor

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Is measured by the slope of the production function relating capital of employment

Is larger when the labor supply is relatively larger

Is smaller when the labor supply is relatively smaller

Decreases as the number of workers already employed increases

When the value of output exceeds planned spending .

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There is unsold output, and the level of income will fall

there is unsold output and the level of income will rise

There is unsold output, and the level of income does not change.

All of the above

The overall Budget Deficit is financed from

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External borrowing

Non bank borrowing domestically

Bank borrowing plus the above two at a and b

None of the above

Tax collection estimate for year 2012-13 is Rs. _______ billion

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3,234

3150

3.064

None of the above

The overall Budget Deficit is financed from

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External borrowing

Non bank borrowing domestically

Bank borrowing plus the above two at a and b

None of the above

An example of discretionary fiscal policy would be.

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The operation of the welfare sate

The operation of the processive federal income tax

A tax cut adopted to stimulate consumption

An interest rate out in plummeted to stimulate consumption

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

Micro economics is conceded with

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The economy as a whole

The electronics industry

The study of individual economic behavior

the interactions within the entire economy

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

"A monetary rule need not mean a single baid number If the central bank fears velocity shifts rules could be adopted for adjusting the target in the face of a trends change in velocity "If velocity were trending upward the target money growth rate would be adjusted.

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Upward

Down ward

To be zero

To match inflation

An increases in the value of the Rupee makes foreign goods cheaper relative to Pakistan goods, resulting in a _______ in net exports and a __ shift of the IS curve

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fall ; leftward

rise ; leftward

fall ; rightward

rise ; rightward

All of the following are obstacles to international economic policy coordination except.

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Different national objectives are institutions

Different national political climates

Different phases in the business cycle

Different national currencies.

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