Question # 1

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

Which of the following macro economics variables is a cyclical.

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Real interest rates

Unemployment

Money supply

Consumption

Which of the following assets is most liquid.

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Shares of stock in IBM

Land

Gold

Currency

Direct investment and security purchases are classified as.

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Capital account transactions

Current account transactions

Unilateral transfer transactions

Merchandise trade transactions

The goal of a pure market economy is to best meet the desires of.

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Consumers

Companies

Workers

The government

Julius smon ha pointed out the applied social sciences in.

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Policy assessment

Policy implementation

Policy formulation

Policy decision

Predicting is the one important role in

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Deduction

Induction

Research

Vertifiablility

Th transpose of the cofactor matrix is called.

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Adjoin of the matrix

Power of a matrix

Minor of the matrix

Rank of a matrix

Equilibrium occurs in a two sector model when

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Saving equals investment.

Consumption plys investment equals the value of putput

Planned saving equals planned investment.

Aggregate spending equals the revenues of the business sector

The theory of ___________ suggests that government can assist domestic competitors.

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International dumping

Countervailing duties

Strategic trade policy

Export promotion policy

in 1950's industrial development was observes only in.

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Food industry

Textile industry

Coal industry

Cement indusry

Rule of innovation in economic growth is very important according to.

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Adam smith

Richardo

Schumpter

Rostow

A multinational busniess

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Sells products abroad

Produces in more than one country

Imports from abroad

Sells only domestically

When marginal revenue equals marginal cost

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Total revenue equal total cost

There is the biggest positive difference between total revenue and total cost

there is the biggest negative difference between total revenue and total cost.

Profits are zero

The idea that the natural rate of unemployment rises when the acual rate of unemployment rise is known s.

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Stabilization

Insider outsider theory

Hysteresis

an efficiency wage model

Which of the following is correct for the demand and supply schedules given above.

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The demand curve is non linear

The slope of the supply curve is 4

Equilibrium quantity is 40 units

The slope of the demand curve is 0.5

In perfect competation.

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The price equals the marginal revenue

The price equals the average variable cost

The fixed cost equals the variable costs

The price equals the total costs

any number raise to the power zero is always equal to.

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zero

one

two

The number itself

If desired spending in the economy exceeds income we would expect.

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House hold to save more

Firm to produce less

Firms is produce more

the MPC to change

If the prices of both goods increase by the same percent the budget line will

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Shift parallel to the left

shift parallel to the right

Pivot about the x axis

Pivot abut the Y axis

The "Law of demand" most directly means that consumers buy

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More of a good the higher their incomes, ceteris paribus.

Less of good the higher its price ceteris paribus

Buy more of a good the less is its supply ceteris paribus

Buy less of a good the greater is its supply ceteris paribus

What is the possible cause for a falling real GNP over a period of time.

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A general fall in the value of output though changes in quantities producted.

A general increase in prices

An increase in the value of output produced and a general increase in prices

A, B and C

The equilibrium price and quantity , given the inverse demand and supply functions.

po = 3q +30 and p s = 2q -5

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p = 9 and q = 7

p = 10 and q = 7

p = 9 and q = 8

p = 7 and q = 9

Given fixed change rate assume Pakistan initiates expansionary monetary and fiscal polices to combat recession these policies will also.

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Increase both imports and exports

Increase exports and reduce import

Reduce a balance of payments surplus

Reduce a balance of payment deficit

increase foreign competition tend to.

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Intensify inflationary pressure at home

Induce falling output per worker hour for domestic workers

Place constraints on the wages of domestic workers

Increase profits of domestic import competing industries.

In today world most countries impose tariffs

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Only on imports

Only on exports

On both imports and exports

On imports exports and nontrade goods

A good that is used as a medium of exchange as well as being a consumption good is called.

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A barter money

A commodity money

A legal tender

A debased money

As income increases.

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the average propensity to consume gets nearer in value to the marginal propensity to consume

the average propensity to consume diverges in value from the marginal propensity to consume

the average propensity to consume falls

The averge propensity to consume always approaches 0

Government may contribute to inflationary pressure on account of building up large.

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Numbers of employees

Welfare plans

Budget deficits

Expenditure.

Economic growth can be measured by

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The CPI

The CBI

GDP

MPC

Empirically verifiable observation is

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Values

Theory

Fact

Hypothesis

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