Question # 1

The main role of the Federal Reserve is to

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Administer the government on the state of the economy

Overses the operations of the financial system and monetary management.

Establish the value of the dollar and official interest rates

Provide advice to the government on the state of the economy.

In order to constitute an oligopolistic market structure.

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There must be a few firms in a given relevant market

There must be a few firms selling in a national market

There must be more than 20 firms selling in the international market

There must be fewer than 15 firm is any given market

If the economy grows the government's budget position will automatically

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Worsen

Improve

Stay the same

Increase with inflaction

A possible use in economies for the circle of the ellipse is to model.

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Production possibility curve

Demand curve

Iosco line

Supply curve

Agricultural Development Finance Corporation was created in _____ under a central Act for the purpose of expanding financial facilities and promoting the development and modernization of agriculture in Pakistan.

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1950

1951

1952

1953

If every elements of a raw or column of a square matrix A is zero, then the value of the determinant .

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Equal

Zero

One

Negative related

GDP difference between GNP because.

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GDP = GNP - net factor payments from abroad

GNP = GDP -net factor payments from abroad

GDP = GNP -capital consumption allowances

GNP = GDP -capital consumption allowances.

Saving means

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Part of income for investment

Income for boarding

Non consumption of income in the current period

None of the above

An autonomous rise in __________ note causes by a change in the price level aggregate output of the interest shifts the _________ curve to the

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Net exports LM right

Net exports LM left

Money demand IS right

Money demand LM left

The demand for labor slopes down and to the right because of.

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The law of demand

The iron law of wages

The law of diminishing marginal returns

Economies of scale

To be productively efficient a firm must produce where

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Marginal costs are maximized

Marginal costs are minimized

Average costs are minimized

Average revenue is maximized

A decrease in the quantity of money supplied shifts the money supply curve to the _____ and the LM curve to the

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right ; left

right ; right

left ; left

left ; right

In Pakistan government budget is prepared by.

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National Assembly

President of Pakistan

Ministry of finance

State bank of Pakistan

An increase in total production causes the demand for money to _____ and the interest rate to ______

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Increase ; increase

Increase ; decrease

decrease ; decrease

decrease,; increase

An increase in spending those results from expansionary _______ policy cause the interest rate to.

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fiscal ; rise

fiscal ; fall

incomes ; rise

income ; fall

According to the balances growth theory

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UDCs can be developed by foreign aid

UDCs can be developed by national saving

UDCs have to start from beginning

DCS are responsible for the development of UDCs

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

If price is initially above the equilibrium level.

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the supply curve will shift rightward

The supply curve will shift letward

Excess supply exists

All firms can sell as much as they want

What is the process of summarizing raw data and displaying them on compact statistical tables for further analysis.

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Statistical analysis

Data processing

Tabulation

Table construction

In linear consumption function with a positive slope less that on means that if income increase, consumption will.

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Fall

Not change

Fluctuate

Increase

Who among the following is a pantheist

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Warwick fox

Spinoza

Kant

None of these

Can economic theories be tested.

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No since individuals will seldom respond in predictable ways

Yes, since all individuals respond int he same ways to the same situation.

No , since the general behavior of a large numebr of individuals cannot be predicated

Yes , since people will, on average, respond in predictable ways to changes in costs and benefits.

Non proportional random sampling is a sub type of.

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Unrestricted random sampling

Simple Random sampling

Stratified Random sampling

Cluster Random sampling

The are price elasticity of demand is approximately

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0.3

3.3

6.0

0.2

A decrease in wealth would cause the IS curve to

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Shift up and to the right

Shift down and to the left

Remain unchanged

Shift up and to the right only in poeple face borrowing constraints.

Total utility of a commodity is measured by which price of that commodity.

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Value in use.

Value in exchange

Both of above

None of above

The product cycle theory of trade is essentially a

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Static short run trade theory

Dynamic, long run trade theory

Zero sum theory of trade

Negative sum theory of trade

The classical are of the view that utility can be.

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Ranked

Counted

Expressed in numbers

Not counted

If demand is _______ then price cuts will ________ spending.

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Inelastic, increase

Elastic, increase

Elastic, decreases

None of the above

National Bank of Pakistan is one of the largest commercial bank operating Pakistan it was established.

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1948

1949

1952

1953

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