Question # 1

If a few firms dominate an industry the market is known as.

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Monopolistic competition

Competitively monopolistic

Duopoly

Oligopoly

Other things equal a decrease in autonomous consumption shifts the _____ curve to the

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IS ; RIGHT

IS ; Left

LM ; Left

LF ; Right

A activates which do not promote human welfare cannot be encouraged.

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Western estate

Police state

Islamic estate

None Islamic estate

" A growing number of economists view the Fed's new willingness to take on more of the nation's debt as inflationary in the long run." This inflation worry is because.

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The government may tax less

The debt may become excessive

The government may spend more

The money supply may increase excessively

In the ERM, each country fixed ___ against each other ERM participant collectively the group._____ against the rest of the world.

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A nominal exchange rate, floated

A real exchange rate, pegged

a purchasing power parity, pegged

a real exchange rate, floated

A dichotomous question can be answered in one of the

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three responses

Two responses

Multiple responses

free responses

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

The appropriate expenditure switching policy to correct a balance of payment surplus is.

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Currency revaluation

Currency devaluation

Expansionary monetary policy

Contractionary fiscal policy

Which of the following taxes is regressive.

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The Federal income tax

The state income tax

The sales tax

The Medicare tax

A situation in which firms choose their best strategy given the strategies chosen by the other firms in the market is called.

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a competitive equilibrium

An open market solution

The Nash equilibrium

The cartel equilibrium

In price discrimination, which section of the market is charged the higher price.

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The section with the richest people

The section with the oldest people

The section with the most inelastic demand

The section with the most elastic demand

The World Bank gives

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Long term

Short term and long term credits

Both long term credits

None of these

From of Agriculture in which famers move from place to place in search of better land is called.

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Subsistence farming

Shifting cultivation

Shifting agriculture

All of these

Un employment Rate is a percentage relation with reference to.

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Total population

Civilian Labour force

employed persons

Unemployed persons

The exit of firms out of a competitive market causes the supply curve to.

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Shift leftward

shift rights ward

None of the above for the exit of firms supply curve

shift either left or right depending on the number of firms leaving the market

The purpose of making assumptions in economic model building is to.

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Force the model to yield the correct answer

Minimize the amount of work an economist must do

simplify the model while keeping important details.

Express the relationship mathematically.

Consider the five panels of the figure on the previous page in which of the five would monetary policy be the weakest.

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Panel a

Panel d

Panel b

Panel e

When imports from a higher cost supplier with in customs union replace imports from a lower cost supplier outside the custom union, there exists.

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Trade creation

Trade diversion

Dynamic welfare effects

Comprehensive welfare efffects

One of the following has more elastic demand.

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A commodity with substitutes

A commodity having more than one use

A commodity commonly use

None of these

One of the following is not a necessary characteristics of UDCs

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Low saving ratio

Low capital formation

Disguised unemployment

Insufficient human resources.

Perfect international capital mobility suggests that international funds will be responsive to _______ differentials.

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Current account

Interest rate

Tax

Price

It enables the researcher to acquaint himself with current knowledge in the field in which he is going to conduct his research.

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Social survey

Research proposal

Review of literature

Research design

Snowball sampling is used for data collection through.

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Connecting relations

Small population

Representatives

None of the above

The accelerator assumes.

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The marginal propensity to consume is constant

The economy is at full employment

There is a constant relationship between net investment and the rate of change of output

The multiplier is constant

Application of Modern technology to increase the yield is due to

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Subsistence farming

Mechanization

Green revolution

None of these

An outward shift in the marginal efficacy of capital should.

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Decrease consumption

Increase aggregate demand

Reduce aggregate supply

Slow economic growth

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.

What is the share of Urban Population in the total population of Pakistan.

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38.6%

42.6%

41.0%

32.5%

Total factor productivity growth is that part of economic growth due to.

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Capital growth plus labor growth

Capital growth less labor growth

Capital growth times labor growth

Neither capital growth nor labor growth

As a result of privatization of industries private investor was

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Discouraged

Neutral

Encouraged

None of these

When the economy goes into are cession there's an increase in.

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Frictional unemployment

structural unemployment

Cyclical unemployment

Voluntary unemployment

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