Question # 1

An increase in consumption at any given level of income is likely to lead to.

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a fall in savings

An increase in exports

A fall in taxation revenue

A decrease in import spending

An increase income will

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Lead to a movement along the demand curve

Shift the supply curve

Shift the demand curve

Lead to an extension of demand

Profit is measured by

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Revenue - Fixed costs

Fixed cost + revenue

Revenue - sales

Revenues - total costs

Which of the following best defines price discrimination.

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Charging different prices on the basis of race

Charging different prices for goods with different costs of production

Charging different prices based on cost of service differences.

Selling a certain product of given quality and cost per unit at different prices to different buyers

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

In monopsony there is

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Single seller

Two buyers

Single buyer

Few buyer

An increase in the expected real interest rate tends to.

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Raise desired saving only

Raise desired investment only

Raise both desired savings and desired investment

Raise desired savings, but lower desired investment.

An expansionist fiscal policy could include

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Lower interest rates

Increased lending by the banks

An increase in corporation tax

An increase in discretionary government spending

The equilibrium level of Y and I derived from the LM and IS equations above is.

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Y = 130 and I = 10%

Y = 200 and I = 30%

Y = 180 and I = 7%

Y = 250 and I = 2%

Pakistan to get ________ of gas from Pak iran Gas pipeline Turkmenistan -Afghanistan , Pakistan , India gas pipeline.

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1.5 billion cubic feet

2 billion cubic feet

2.5 billion cubic feet

3 billion cubic feet

Which of the following assets is most liquid.

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Shares of stock in IBM

Land

Gold

Currency

in large scale industry 46% share is contributed by

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Textile industry

Cement industry

coal industry

Steel and iron industry

Primary producers maybe labeled as.

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White coliar workers

Pink collar workers

Red collar workers

None of these

What adjusts to restore general equilibrium after a shock to the economy.

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The LM curve

The IS curve

The FE line

The labor supply curve

Some goods are not closely related to each other and are neither substitutes nor complements for such goods the cross price elasticity of demand would be.

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Positive

Negative

Zero

Cannot tell without more information

In Islamic economic system following means of gaining wealth are permitted

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smuggling

Hoarding

Gambling

None of these

Price discrimination is possible

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Oligopoly

Duopoly

Perfect competition

Monopoly

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

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

Employment tends to _______ whwn aggregate output.

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rise, falls

rise ; rises

falls; rises

Not change ; falls

The value of real GDP in the current year equals.

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The value of current year output in prices of the base year

The value of current year output in pries of the current year

The value of base year output in prices of the base year

The value of base year output in prices of the current year

World trade has been increasing due to.

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Increased tariffs

Increased legal barriers

Increased embargoes

Reduced protectionism

a x2 + bx + c = 0

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Linear equation

Quadratic equation

Polynomial of degree five

None of these

The risk free rate of interest would not be affected by.

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Changes in real output

Change in the money supply

Term to maturity

None of the above

The long run is a time period that is.

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Five years or longer

Long enough to change the level of labor hired

Long enough to change the size of the firm's plant

Ten years or longer

Direct investment and security purchase are classified as.

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Capital account transactions

Current account transactions

Unilateral transfer transactions

Merchandise trade transactions

If each element of a raw or column is a sum of two elements, the determinant can be expressed as the

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Sun of two determinants

Difference of two determinants

Multiplication of two determinants

Division of two determinants

Pakistan place in the world area size in ______ number.

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4th

5th

6th

7th

Gold -Collars workers fall in

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Primary activity

Tertiary production

Quinary activity

None of these

As the price of a good increases, the change in the quantity demanded can be shown by

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Shifting the demand curve leftward

Shifting the demand curve rightward

Moving down along the same demand curve

Moving up long the same demand curve

Which of the following macro economics variables is a cyclical.

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Real interest rates

Unemployment

Money supply

Consumption

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