Question # 1

In monopolistic competition firms profit maximize where

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Marginal revenue = average revenue

Marginal revenue= Marginal cost

Marginal revenue= Average cost

Marginal revenue = Total cost

A vertical demand curve results in.

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No change in quantity when the supply curve shifts.

No change in price when the supply curve shifts

No change in the supply curve being possible

No change in quantity when the demand curve shifts.

Statistics are affected to a market extend by

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Aggregate of facts

Multiplicity of causes

Numerically stated

Complex manifestations

Money or paper currency serves at least _______ functions.

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Three

Four

Five

Seven

Human wants are

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Always fixed

Limited

Unlimited

Likely to decrease over time

Changes in subjective or objective factors.

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Never affect the consumption function

Always cause downward shifts of the consumption function

Always cause upward shifts of the consumption function

May cause upward or downward shifts of the consumption function

Over time the price of primary products tends to fall because.

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Demand is income elastic

Supply is income elastic

Of outward shifts in supply

Demand is price elastic

The effect of a tax to offset a negative eternality will be to ________ price and ____ quantity.

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Reduce, reduce

increase, increase

Increase , reduce

reduce, increase

A firm's total labor cost when six workers are employed is Rs.580 When seven workers are employed the total labor cost is Rs.700 the Rs. 120 change in total labor cost represents.

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Marginal physical product

Marginal resources cost

Marginal cost

Marginal revenue

In monopolistic competition firm sell

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Same goods

Differential goods

Inferior goods

Superior goods

Which of the following measures is the best measure of money as a medium of exchange.

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M1

M2

M3

None of the above

Where there is an equal increase in net tax revenue and government spending, ceteris paribus.

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(C+I+G) is shifting upward

(C+I+G) is shifting downward

(C+I+G) does not shift

All of these

Research is an organized

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Enquiry

Survey

Investigation

Experiment

Nationalization occurs when

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The government bans a product

The government takes control of an industry

the government taxes a product to a raise the price.

The government taxes a product to a raise its price.

Economics is the study of

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Production technology

Consumption decisions

How society decides what how and for whom to produce

The best way to run society

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

In monopoly in long run equilibrium.

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The firm is productively effieient

The firm is allocatively inefficient

The firm produces where marginal cost is less than marginal revenue

The firm produces at the sociality optimal level

Supply is likely to be more price elastic.

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In the short run rather than the long run

If factors of production are relatively immobile between industries.

If there are very few producers

If it is easy to expand output

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

A set of systematically related propositions specifying causal relationships among variables.

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Research

Concept

Theory

Hypothesis

During the last eight years the per capita income in Pakistan has been

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Increasing substantially because of decline in population growth

Decreasing

increasing only marginally

Constant

Which trade theory contents that a country that initially develops and exports a new product may eventually become an importer of if ,a nd may no longer manufacture the product.

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Theory of factor endowments

Theory of overlapping demands

Economies of scale theory

Product life cycle theory.

Non tariff trade barriers could include all of the following except

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Domestic content laws

Government procurement policies.

Health , safety and environmental standards

Autidumpiing /countervailing duties applied to imports

If tastes are identical between countries than comparative advantage is determined by

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Supply conditions only

Demand conditions only

Supply and demand conditions

Can't tell without more information.

Social welfare is maximized when a hedonistic calculus regulates all human action according to the interventionist liberal

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John Stuart Mill

Thorstein veblen

Milton Frideman

Jeremy Bentham

The equilibrium price clears the market it is the price at which.

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Everything is sold

Buyers spend all their money

Excess demand is zero

c and d

A firm can fund an investment from its own sources, the opportunity cost of its investment is

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Less than zero

Zero

More than zero

Neither

According to classical models the level of employment is determined primarily by

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Interest rates

The level of prices

The level of aggregate supply in the economy

The level of aggregate demand for goods and services

The contractionary effect on private investment spending due to financing requirements of government deficit pushing up interest rates is known by this term.

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Crowding out

Recognition lag

Public sector borrowing requirement

Fiscal drag

Deep ecology places emphasis upon

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Life

Man

Environment

Relationship

the Zarai Taraqiati Bank Limited is the largest public sector financial development institution Pakistan it was founded in.

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1960

1961

1962

1963

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