Question # 1

Suppose that the supply curve of lin is highly inelastic if the demand curve of lin decreases and increases cyclically along the supply curve of lin then in this market the size of the quantity fluctuations will be _____ the size of the price fluctuations.

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Relatively greater than

Relatively less than

the same as

Any of the above

In the economy when a steel producer sells steel to car producer it is regarded as.

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A final good

An intermediate good

an injection

a leakage

Suppose your company is in equilibrium with its capital stock at the desired level A permanent decline in the expected real interest rate now has what effect on your desired capital stock

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Raises it because the future marginal productivity of capital is higher

Lowers it because the future marginal productivity of capital is lower

Raises it because the user cost of capital is now lower

Lowers it because the user cost of capital is now higher

Which of the following concepts represents the extra revenue a firm neceives from the services of an additional unit of a factor of production.

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Total revenue

Marginal physical product

Marginal revenues product

Marginal revenue

What is the reason for the necessity of statistics in the field of social sciences.

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Simplification and quantitative approach

Knowledge acquisition and description

Easiness and analytical

all of the above

For given government spending and taxation the government budget deficit will grow in __________ and decline in _________

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booms, booms

recession, recession

booms, recessions

recessions, booms

The term of trade in Pakistan remained unfavorable regarding.

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Industrial sector

Services sector

Agricultural sector

All of these

As disposable income increases from Rs. 1500 to 2000 , saving increases from minus Rs. 50 to Rs.250 if the relationship between disposable income and saving is linear, the MPC obviously has a value of.

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.6

.8

.4

.2

In which of the following situations will an increase in the money supply have no effect upon equilibrium iincome.

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LM is steeply sloped and IS is relatively that

LM is vertical and IS is stopped

LM is steeply sotped and IS is vertical

LM is relatively flat as is IS

If people are made unemployed because of a fall in aggregate demand this is known as.

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Frictional unemployment

Seasonal unemployment

Cyclical unemployment

Structural unemployment

The marginal propensity to consume is equal to.

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Total spending /total consumption

total consumption/total income

Change in consumption/change in income

Change in consumption/change in savings

Relation with other aspect of research creates.

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Values related problem

Ethical problem

Personal prejudice and bias

Moral dilemmas

The Central Bank controls money and credit with the exception of.

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Controlling the money base through open market operations

Controlling reserve requirements

Setting the discount rate of interest

controlling the stock market

The cliche that "The punishment should fit the crime " originated in the writings of.

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Plato

Thomas Aquinas

Jeremy Benithm

David hume

An increase in the number of workers hired by a firm could result from

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a decrease in the marginal product of labor

a decrease in the marginal revenue product of labor

An increase in the real wage

A decrease in the real wage

Pakistan is the _________ largest Cotton Producer country in the world

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Fourth

Fifth

Eight

Sixth

Regarding Industrial development in Pakistan in 1960 following policy was adopted.

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Import substitution

Export promotion

Both

None of these

The Eco is a word derived from

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Philo

Economy

Oikos

None of these

If firms paying employees monthly began paying them weakly then the demand for money would.

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Rise and income would rise

Rise and income would fall

Fall and income would rise

Fall and income would fall

If a price floor of Rs.15 is imposed, the governments cost is.

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Rs.150

Rs.300

Rs.750

Rs.450

In balance of payments accounting tourism and travel are classified in the

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Merchandise trade account

Services account

Unilateral transfers account

Capital account

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

Under floating exchange rates, expectations of higher interest rates are likely to cause an __________ of the exchange rate.

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Depreciation

Appreciation

fall

Devaluation

A decrease in the legal reserve ratio from 25% to 20% will

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Result in light money

Be contractionary

Increases excess reserves and the potential money multiplier

Decrease excess reserves and the potential money multiplier

Given the saving equation S = - 50 + 0, 20 Y, where s is saving and Y is income.

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The break even level of income is 240

Dissaving takes place if income is 300

Consumption expenditures and saving are equal at an income level of 500

The MPS is constant for all levels of income

A stable equilibrium requires that the marginal propensity to consume is.

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Less than zero

Zero

One

None of these

Two independent variables are not independent of each other in a multiple regression problem The analyst most likely will be confronted with.

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The problem of autocorrelation

A type 1 error

The problem of multicollinear rarity.

a type II error

the ouput where diminishing return to production begin is also the ouput where

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Marginal cost is at a minimum.

Average total cost is at a minimum

Average variable cost is at a minimum

Marginal and average

If the same amount is added to or subtracted from all the values, standard deviation shall be.

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Changed

Unchanged

Both

None

Which among the following is not an essential of sampling.

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Representativeness

Complete

Same

Dependent

"More reliable results can be obtained through sampling method" because.

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Statistical error is low

Saves time

Cost is low

None of the above

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