Question # 1

A linear homogenous production function would reveal.

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Constant returns to scale

Increasing returns to scale

Decreasing return to scale

Doubling all inputs would more than double output

An -increase the expected future price of a good.

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Increases its demand

Decreases its demand

Increases its supply

Has no effect on either its demand or its supply.

The Root Mean square Error for the actual sales and sales forecast for 1985 and 1986 is.

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20.2

19.9

14.7

17.2

Identification with nature is the grounding

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Bio centrism

_{Deep ecology}

Anthropocentrism

Holism

Globalization is likely to increase with

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More protectionism

An increase in tariffs

More trade within countries

Greater trade flows between countries

In autarky when a community maximizes its standard of living its production points is.

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Below the production possibility frontier

On the production possibility frontier

Above the production possibility frontier

Can't tell without more information.

When capital mobility is perfect, interest rate differentials will tend to be offset by

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Price differences.

Balance of payments differences.

Current account differences.

Expected exchange rate changes

Since 1960, the rate of economic growth in the country has been

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On the decline continuously

Increasing continuously

Increasing occasionally

Static in real terms

In a private sector model

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Household saving is a leakage from the circular flow

Investment is a spending injection

All of the above

None of the above

What does statistics of distribution indicates.

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Consumer preference

Strength of the desire of people

Wealth of nation

Economics conditions of people

If the quantity of money demands is less than the quantity of money supplied then the interest rate will.

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Either increases or decrease, depending on the amount of excess demand.

Increase

Decrease

not change

Bank and other corporations were nationalized by

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Z.A. Bhutto

Nawaz sharif

Zia ul Haq

None of these

If a price increase of good A increases the quantity demanded of good B, then good B is a.

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substitute good

Complementary good

Bargain

Interior good

What makes economics scientific.

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It tests theories against observations and modifies the theories if needed.

It uses numbers to measure things

It involves the use of experiments

It is a description of how thing work

The human centered ethics puts value up on

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Human only

Animals only

Species as a whole

Single individual

Foreign capital formation includes

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Foreign direct investment

Grants

Loans

All of these

All of the following are benefits of the single market except.

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It allows countries to exploit their comparative advantage, more fully

Firms could more readily exploit economies of scale

It intensified competition

It is easier book holidays in member countries.

The aggregate supply of labor is the

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Total amount of time a person works over his or her lifetime

Total amount of time a person spend in the labor force over his or her life time

Unemployment rate

Sum of the labor supplied by everyone in the economy

When stock market is falling it is calle.

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Bearish

Bulish

Imperfect competition

Fall down

Which policy is an expenditure switching policy.

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Increase in the money supply

Decrease in government expensitures

Increase in business and household taxes

Decrease in import tariffs

Nationalism, self sufficiency, and imperial power were central concerns of.

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French physiocrats

Thomas Malthus

Mercantilists

Adam Smith

If the demand for money increase relative to the supply of money

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Interest rates will trend upward

Interest rates will trend downward

Interest rates are not affected by increases in money demand

Interest rates will behave randomly

Using the Keynesian model the effect of a government imposed celling on interest rates paid on personal checking accounts that is lower than the current market interest rate would be to cause._ in the real interest rate and _ in input out in the short sun.

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A decrease ; a decrease

A decrease ; no change

A decrease ; an increase

An increase ; a decrease

The balance of trade can only worsen if income_______ relative to absorption

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Increases

Decreases

Does not change

None of the above

Those who argue in favor of import protection generally give the impression that such restricted trade will.

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Decrease the level of national security

Provide benefits to some particular industry

Provide benefits to the entire nation

Not yield welfare losses for the nation

The money multiplier is 4, and the money creating potential of the banking system is Rs. 40,000,000. The legal reserve ratio and the excess reserves are.

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40 percent and Rs. 4,000,000

40 percent and Rs. 10,000,000

25 percent and Rs. 2.500,000

25 percent and Rs.10,000,000

According to Keynes the exogenous factors like technology increase in population and discovery of new markets are the reasons. of.

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Underemployment

Structural dualism

Low capital formation

Secular stagnation

In the Keynesian corss diagra, an increase in autonomous consumer expenditure causes the aggregate demand function to shift up the equilibrium level of aggregate output to _______ and the IS curve to shift to the _______

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rise ; left

rise ; right

fall ; left

fall ; right

In monopoly when abnormal profits are made.

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The prize set is greater than the marginal cost

The price is less than the average cost

The average revenue equals the marginal cost

Revenue wquals total cost

The conjecture that inequality first increases with development then decreases with further development has been

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Strongly supported by most studies

Supported mainly by cross section not time series studies.

Supported mainly by time sereis not cross section studies

Generally repudiated by empirical studies.

A nation experiences internal balance if it acieves.

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Full employment

Price stability

Full employment and price stability

Unemployment and price instability

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