Question # 1

In the monetary base is increased by $1,000 and the reserve requirement is 10% by how much will the money supply be increased.

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$100

$1,000

$5,000

$10,000

Import substitution is an example of.

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The principle of comparative advantage

The principle of absolute advantage

An outward looking growth strategy

An inward looking growth strategy

The AD schedule indicates that______ inflation is associated with______ output.

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higher , lower

Higher , higher

Lower , lower

zero ,zero

Indirect taxes are

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Direct taxes - subsidies

Subsidies

Sales taxes

Income taxes

A firm's monopolistic position is strengthened by

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low elasticity of demand for its product

High elasticity of demand for its product

Constant elasticity of demand

None of the above

If Federal reserve conducts open market sales, the money supply ___ shifting the LM curve to the_____

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decreases ; right

decreases ; left

Increases ; right

Increase ; left

The near term effect of an unexpected sale of bonds by the central bank is.

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An increase in interest rates, a risen investment and a rise in GDP

An increase in interest rates a drop in investment and a drop in GDP

A decrease in interest rtes a rise in investment and a rise in GDP

A decrease in interesr rates a drop in investment and a drop in GDP

If leisure is an inferior good the individuals supply curve for labor is.

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Back ward bending

Completely inelastic

Upward sloping

Perfectly elastic

An optimal tariff is one which reduces imports to the level at which ___ equals

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imports , exports

The balance of trade, zero

The demand for currency, the supply of currency

Social marginal cost social marginal benefit

Resources in an economy

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Are always fixed

Can never decrease

Always increase over time

Are limited at any moment in time

An increase in the expected rate of inflation would.

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shift the Philips curve upward

shift the phillips curve downward

Shift the long -run phillips curve to the right

Shift the long-run phillips curve to the left

Why might a country resist globalization.

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Greater choice of final products

Greater choice of supplies

Greater competition for domestic firms

More markets to sell to

The economists who emphasized wage flexibility as a solution for unemployment were.

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Monetarists

New keynesians

Classical economists

Keynesians

If the estimated values of Y and Py in 1987 are Rs. 30,000 and Rs. 8 respectively the marginal revenue of X is.

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260 - 160 x

420 - 4Qx

240 - 16 Px

80 - 4Qx

If firm earn normal profits.

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They will aim to leave the industry

Other firms will join the industry

The revenue equals total costs

No profit is made in accounting terms

If marginal product is below average product.

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The total product will fall

The average product will fall

Average variable costs will fall

Total revenue will fall

When investment spending is negatively related to the rate of interest, equilibrium income in the goods market.

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Is unrelated to the rate of interest

Is positively related to the rate or interest

Inversely related to the rate of interest

Falls as the rate of interest decreases

Biocentrism comes under

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Life centrism

Ecologism

Anthropocentrism

Materialism

When the period of Rabi crops starts and when it end.

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October - May

January - October

May- October

June - September

Eco philosophy deals with philosophy of

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Nature

Mind

Science

None of these

Which of the following is a patriarchal value.

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Sympthy

Domination

Cooperation

Love

The neoclassical theory of growth identities the steady state rate of growth as the _________ just sufficient to keep _______ constant while labour grows.

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Saving investment

Capital per person productivity

Labour growth , output

Investment capital per person

If the exchange rate is above the equilibrium level.

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There is excess demand and teh exchange rate will fall

There is excess supply and the exchange rate will fall

There is excess demand and the exchange rate will rise

There is excess supply and the exchange rate will rise

Economic transition involves high inflation because ______ and _____

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High monetary growth, high wages.

High budget deficits, devaluation

High monetary growth, devaluation

Prices surge from an artificially low level to their equilibrium level the inflation tax is required as source of government revenue.

In Pakistan income tax is

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progressive tax

Proportional

Direct

A and c of above

In monopoly which of the following is true.

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There are many buyers and sellers

There is one main buyers

There is one main seller

The actions of one firm do not affect the market price and quantity.

When total utility becomes maximum then marginal utility will be.

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Minimum

Average

Zero

Negative

Which of the following is a characteristic of pure monopoly.

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one seller of the product

Low barriers to entry

Close substitute products

Perfect information

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

According to Nurkse a balance growth a ncessary to.

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Develop resources

Develop capital

Break vicious circle of poverty

Develop infrastructure.

The competitive firm maximizes its profit by operating where

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Average costs are at a minimum

Total revenue is at a maximum

Profit per unit is at a maximum

Marginal cost equals price

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