Question # 1

In Islam absolute ownership of property lies only with.

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Government

Owner of the property

Allah

None of these

In Vann diagram the universal set is represented by

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Points within a rectangle

Points within a circle

Both a and b

None of these

Information that is represented usually as words, not numbers.

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Qualitative data

Quantitative data

Primary data

Scientific data

The earliest statement of the principle of comparative advantage is associated with.

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Adam Smith

David Ricardo

Eli Heckshcer

Berti Ohlin

In the Keynesian corss diagra, an increase in autonomous consumer expenditure causes the aggregate demand function to shift up 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

The bowed shape of the production possibilities curve illustrates

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The law of increasing marginal cost

the production is inefficient

the production in unattainable

The demand is relatively inelastic

Gender is categorized as

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Nominal data

Ordinal data

Interval data

Ratio data

An advocate of the classical model of the economy would claim that unemployment a created when the ___________ is above its equilibrium level in the.

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Price level, agregate economy

Tax rate, government ebudget

Wage rate, labour market

Interest rate, market for loanable funds

In capitalistic economy price is determined by

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Supply and production

Demand and production

Demand and consumption

Demand and supply

"Income inequality can be high in the free market and should be reduce ".This is an example of what.?

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Judicial economic statement.

Positive economic statement

Formative economic statement

Normative economic statement

For a competitive firm its short run supply curve is ________ and its long run supply curve is.

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SMC , LMC

SMC above SAVC, LMC above LAC

SMC below SAVC, LMC above LAC

SMC Below SAVC, LMC below LAC

The average total cost of a wedge increases from Rs. 0.79 ro Rs. 0.83 Evidently

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AFC exceeds AVC

MC is between Rs. 0.79 and Rs. 0.83

AVC is Rs. 0.83

MC is greater than Rs. 0.83

management of the economy via extensive regulation and laws specified by the national government is most consistent with

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syndication

Mercantilism

Classical liberalism

None of these

Disposable income is.

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Income less taxes

Income less direct taxes

income less indirect taxes

All of these

Why is the law of diminishing marginal returns true.

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specialization and division of labor

Spreading the average fixed cost

Limited capital

All factors being variable in the long run

The automatic stabilization function of fiscial policy ensures that government expenditures _________ and government revenues __ during recessions.

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decrease ; decrease

decrease ; increase

Increase ; decrease

increase ; increase

Research may be made through either arbitrary method of

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Rational method

Scientific method

Imagination method

Vague method

For perfect competition ot work there must be

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Many buyers and sellers

A standard product

Free entry and exit

All of the above

The national security argument for protection is more likely to be valid when

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The purpose is to maintain protection for an indefinite time period.

The industry is characterized by increasing returns to scale.

the economy operates during a recession

The protected industry provides invaluable goods during periods of war

An ethics that treats only humans as morally considerable is called.

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Holism

Eco centrism

Anthropocentrism

None of these

Which of the following is not a way of helping developing economics.

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Aid

Loans

Protectionism of developed markets

Training and education programmes

When an increase in government spending is matched by an equal decrease in government transfers, the income level will.

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Stay the same

Increase

Decrease

All of the above

Historically countries at early stages of rapid economics development have tended to experience.

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Trade deficits and an excess of investment over domestic saving.

Trade surpluses and an excess of investment over domestic saving

Trade deficits and an increase of domestic saving over investment.

Trade surpluses and an excess of domestic saving over investment.

Which financial instruments provide a buyer the right to purchase or sell a fixed amount of currency at a prearranged price within a few days to a coupled of years.

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Letter of credit

Foreign currency option

Cable transfer

Bill of exchange

Comparative advantage is determined by

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Actual difference in labor productivity between countries.

Relative difference in labor productivity between countries.

both a and b

Neither a and b

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 technological improvement will

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Increases the desired capital stock

Decrease the desired capital stock

Have no effect on the desired capital stock

Have the same effect on the desired capital stock as an increase in corporate taxes.

A benefit to consumers of price discrimination is that

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Some products are produced that would not other wise be produced

Producer surplus increases

Consumer surplus decreases

Firms profits increase

A dominant strategy is.

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A winning strategy

A losing strategy

A players best strategy when moving fist

a player's best strategy whatever the strategies adopted by rivals

If X becomes more expansive i relation to Y, what happens to the budget line in the X - Y space, with Y on the vertical axis.

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It shifts to the right

It shifts to the left

The slope becomes flatter

The slope becomes steeper

If a country has linear production possibilities frontier than production is said to be subject to.

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constant opportunity costs

Decreasing opportunity costs

First increasing and the decreasing opportunity costs

Increasing opportunity costs.

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