Question # 1

The equation for the IS curve is.

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Y = 55 - 50 i

Y = 175 - 75 i

Y = 300 - 100 i

Y = 275 - 25 i

If equilibrium national income is less than the full employment the gap can be closed by.

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Raising taxes

Decreasing government expenditures

Raising taxes and decreasing government expenditures.

Increasing government expenditures.

The demand for a product would be more inelastic.

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The greater is the time under consideration

The greater is the number of substitutes available to buyers

The less expensive is the product in relation to incomes

all of the above.

In autarky when a community maximizes its standard of living its production points is.

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Below the production possibility frontier

On the production possibility frontier

Above the production possibility frontier

Can't tell without more information.

An elasticity coefficient of -1 means that

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The demand curve is perfectly inelastic

The demand curve is parfectly elastic

The relative changes in price and quantity are equal

Expenditures on the good would increase if price were reduced.

Following is the major source for a country to meet the deficiency of capital

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Domestic saving

Foreign aid

Domestic barrowing

All of these

Who says theory as a integrated body of definitions, assomptions

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Amold Rose

P. Young

Kerlinger

Karl Peansion

Pakistan place in the world are wise on _______ number

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20th

25th

30th

35th

According to time criterion , a person is called unemployed if the works in a week.

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More than 20 hours

More than 45 hours

More than 35 hours

Less than 35 hours

In a typical cartel agreement the cartel maximizes profit when it.

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Behaves like a monopoly

Behaves like a perfectly competitive firm

Behaves like a duopoly

Is flexible in enforcing production targets

Why does it make sense in assume that people are rational, if you want to predict their behavior.

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People are not guided by emotions when making decisions

People wheo act in the way that best gets them what they want will tend to repeat that behavior, and will tend to learn from mistakes that they do make

People never make mistakes, and tend to make the correct choices all of the time

People always logically figure out what to do.

Holding all other things constant a higher price for ski lift tickets would.

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Increase the number of skiers

Increase the price of skis

Decrease the number of skis sold

Decrease the demand for other winter recreational activities

A decrease iin money demand other thing equal shifts the _____ curve to the

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IS ; right

Is ; Left

LM ; Left

LM ; Rfight

For any square matrix A of order 'n' a +A is.

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Skew symmetric

Non skew symmetric

Symmetric

Non symmetric

To be allocatively efficient ta firm must produce where

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the total cost equals demand

the average revenue equals the marginal revenue

The price equals the average cost

The price equals the marginal cost

If the demand for money increase relative to the supply of money

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Interest rates will trend upward

Interest rates will trend downward

Interest rates are not affected by increases in money demand

Interest rates will behave randomly

If a small country imposes a tariff on an imported goods terms of trade will

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Improve

worsen

Not change

any of the above

Which of the following is not viewed by the text as a major political obstacle to development.

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Growth oriented polices may damage the short term interest of influential groups

Civil war

Corruption

Departing from strict laissez faire principles

According to Okun's law an increase in the unemployment rate will cause_______ in the level of empolyment and __ in the level of output.

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An increase ; an increase

An increase; a decrease

A decrease ; an increase

a decrease ; a decrease

Positive cross elasticities suggest that goods are ______ and negative cross elasticities that goods are.

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Substitutes, interior

Normal, complements

Substitutes, complements

Normal , interior

Friend man's theory of consumption focuses on

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Past income

Current income

Disposable income

Permanent income

A inverse is defined only if A is a

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Square matrix

Column vector

Orthogonal matrix

Skew symmetric matrix

If the determinant formed by the elements of the matrix A is equal to zero, then the matrix is.

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Skew symmetric

Singular

Symmetric

Non singular

If the Bank of Pakistan wished to pursue a tight monetary policy is would.

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Sell government securities on the open market.

Reduce the minimum reserve asset ratio

Buy government securities on the open market.

Lower interest rates

Tax incidence is the

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Ultimate distribution of a tax's burden

Measure of the inpat the tax has on employment and output

Behavior of shifting the tax to another party

Structure of the tax

In perfect competition.

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the products firm offer are very similar

Products are heavily differentiated

A few firms dominate the market

Consumers have limited information

The purpose of support price is to.

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Discourage former

Encourage consumer

Discourage consumer

Encourage farmer

"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

Globalization is made more difficult by

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The actions of the World Trade Organization

The removal of protectionist measures

Exchange rate instability

More free trade agreements

What explains Solow's surprise.

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Diminishing returns to capital

Insufficient assistance to developing countries

Weak institutions

low labor productivity

Between 1982 and 1985 prices increased by

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11.4%

25.2%

14.5%

3.6%

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