Question # 1

Objectivity means basing conclusions on facts without any bias and.

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Pilot study

Paradigm

Value judgment

Concept

Most of the nationalized enterprises showed

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Profit

Losses

Stability

Abnormal profit

The exchange rate system that best characterizes the present international monetary arrangement used by industrialized countries is.

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Freely fluctuating exchange rates

Adjustable pegged exchange rates

Managed floating exchange rate.

Pegged or fixed exchange rates

According to the quantity theory of money an increase in the money supply is most likely to lead ot inflation if

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The velocity of circulation decreases

The number of transactions decreases

There is deflation

The velocity of circulation and the number of transactions is constant

Pakistan's economic development planning began in.

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1947

1948

1949

1950

if we are told that the two statements y = 3x2 and y = x + 10' are bout true at the same time , they are called.

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Implicit functions

explicit functions

Simultaneous equations

Quadratic equations

If X , Y, and Z are willing to work for Rs. 4, Rs, 5, and Rs.6 respectively but N pays them Rs. 7 each, producers surplus is.

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Rs. 4

Rs.7

Rs.5

Rs.6

If the same amount is added to or subtracted from all the values, standard deviation shall be.

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Changed

Unchanged

Both

None

Primary producers maybe labeled as.

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White coliar workers

Pink collar workers

Red collar workers

None of these

What did economist Adam Smith identity as the "invisible hand" that directs the decision making of firms and households in a market economy.

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Government

Product demand

Self interest

International trade

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

Company A estimates the price elasticity of demand for its products.3.0 The price of the product is Rs. 15. If MC = 2+40, the profit maximizing level of output.

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4 units

2 umits

5 units

3 units

Which of the following is an example of primary data.

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Book

Journal

News paper

group interview

Intermediate goods are meant for

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Direct use by the consumers

Further processing

The term do not exist

None

A fall in interest rates is likely to

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Increase aggregate demand

Increase savings

Decrease consumption

Decrease exports

In the UK in recent years, union membership has ______ and days of work lost because of strikes has.

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Grown, declined

declined, declined

declined, grown

grown , grown

The implementation lag for monetary policy is generally

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Much longer than it is for fiscal policy

Unrelated to central bank action

The same as it is for fiscal policy

Much shorter than it is for fiscal policy.

Deflation occurs only when

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Some prices fall but average prices still rise

All prices for all goods fall

The average price level falls

The average price level increases bat at a slower rate than before

An increase in demand for a product should.

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Increase equilibrium price and quantity.

Decrease equilibrium price and quantity.

Increase equilibrium price and decrease quantity.

Decrease equilibrium price and increase quantity.

In monopoly there is.

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Single seller

Single buyer

Two producers

Few seller

Company X sells Rs.75 million dollars of 9.5% first mortgage bonds at par The company's marginal tax rate to 30% The after tax cost of debt is.

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2.85%

3.175

6.68%

7.55

In a mixed economy the economic decisions of what to produce how to produce, and who will receive products are made by

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The government

Consumers and firms

Banks and stock markets

Firms, consumers, and government.

Quota sampling is the combination of.

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Purposive and deliberate sampling

Purpose and systematic sampling

stratified and systematic sampling

Purposive and stratified sampling

The set of subsets of a set A is called.

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Power set of A

Complement of A

Both a and b

None of these

The Philips curve shows the trade off between ________ and _____

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The inflation rate, interest rates

The inflation rate, the unemployment rate

interest rates, output

Output, employment

Which theory is generally included under micro economics.

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Price theory

Income theory

Employment theory

None of the above

An increase in productivity should.

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Lead to a contraction of supply

Lead to an expansion of supply

Lead to a shift in supply outwards

Lead to higher equilibrium and lower equilibrium quantity.

What happens to the money supply if the deficit is financed by selling bonds to the general public.

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The money supply increaes

The money supply decreases

The money supply is unaffected

We cannot tell what will happen to the money supply

According to the Heckscher - Ohlin model

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^{Every one automatically gains from trade}

The gainers from trade out number the losers from trade

The scarce factor necessary gains from trade

None of the above

Suppose nominal GNP is Rs.500 in year 1, the base year If the GNP deflator doubles by year 6 while real output has increased 40% nominal output in year 6 equals.

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Rs.2000

Rs.1400

Rs.1000

Rs.750

Mercantilism.

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Is the philosophy of free international trade.

Was a system of export promotion and barriers to imports practiced by government .

Was praised by Adam Smith in the Wealth of Nations

Both a and c

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