Question # 1

If firms paying employees monthly began paying them weakly then the demand for money would.

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Rise and income would rise

Rise and income would fall

Fall and income would rise

Fall and income would fall

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

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Equal

One

zero

Not equal

The theory that is equilibrium workers wages will barely be adequate for biological needs is knows as the.

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Labor theory of value

Convergence hypothesis

Subsistence theory of wages

Indicative planning model

The arrangement where goods imported from trading partners in the developing world are subject to lower tariff rates than goods from other countries is referred to as.

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Normal trade relation status

Most favored nation status

Generalized system of preferences

Policy of nationalization was adopted in the period of.

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Z.A. Bhutto

Nawaz Sharif

Zia ul Haq

All of them

In perfect competition price is settled by

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Sellers

Buyers

Producers

Both a and b

In the Keynesian model in the short run a decrease in government purchases causes output to _____ and the real interest rate to.

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fall ; rise

fall ; fall

rise ; rise

rise; fall

Who was the social theorist tha proposed socialism a should serve as an intermediate stage on the way to an ideal communist society.

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Karl Marx

William Domhoff

Erik wright

Wright mills

Suppose taht an exise tax is imposed on the monopolist's product if the monopolist's marginal cost is horizontally the relevant range, which of the following statements must be true.

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The price will increase by an amount less than the tax

The price will increase by an amount equal to the tax

The price will increase by a amount greater than tax

The price may either increase or decrease

Primary producers maybe labeled as.

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White coliar workers

Pink collar workers

Red collar workers

None of these

Which of the following is not a primary cause of business cycle fluctuations according to real business cycle theory.

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A change in the production function

A change in the size of the labor force

A change in the money supply

A change in the real quantity of government purchases

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.

Exchange rates that are determined by the unregulated forces of supply and demand are.

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Floating exchange rates

Pegged exchange rates

Fixed exchange rate

Managed exchange rates

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

Which of the following macroeconomic variables is procyclical and lags the business cycle.

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Business fixed investment

Empolyment

Stock prices

Nominal interest rates

Head quarter of World Economic forum is situated in

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Devos

London

Geneva

New York

Which of the following is not involved with fiscal policy.

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Income tax

National insurance

VAT

Interest rates

The locus of equilibrium of consumers due to changes in price of a commodity is known as.

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Price consumption curve

Income consumption curve

Producing possibility curve

None of these

An asset with zero carrying costs and a present value of Rs.50,000 will return continuous annual yield of Rs.5000 if the current and future rate of inters is.

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5%

8%

10%

3%

Data on the unemployment rate is collected from

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A survey of households at home

A surveys of individuals outside the home

a survey of business firms at each firms headquarters

A surveys of business firms at each store office of factory.

Gender is categorized as

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Nominal data

Ordinal data

Interval data

Ratio data

Which of the following explains why demand curves slope downward.

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Prices and income

substitutes and complements

Resources and technology

Substitution effect and income effect

When referring to economic growth we normally refer to.

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Growth in actual real per capita output

Growth in potential real per capita output

Growth in actual nominal per capita output

Growth in potential real per capita output

The average total cost of a wedge increases from Rs. 0.79 ro Rs. 0.83 Evidently

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AFC exceeds AVC

MC is between Rs. 0.79 and Rs. 0.83

AVC is Rs. 0.83

MC is greater than Rs. 0.83

Which trade policy results in the government levying both a specific tariff and an advalorem tariff on imported goods.

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Compound tariff

Nominals tariff

Effective tariff

Revenue tariff

In 1950's special imporant was given to

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Industrial sector

Services sector

Imports sector

Agricultural sector

The ratio of the change in the equilibrium level of income to a change in some automats increase in spending is the

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Elasticity coefficient

Multiplier

Automatic stabilizer

Marginal propensity of the autonomous variable

The firms long run output decision will be where.

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Long run average cost a lowest

Marginal revenue equals output

Marginal revenue equals long run marginal cost

Marginal cost equals output

A decrease iin money demand other thing equal shifts the _____ curve to the

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IS ; right

Is ; Left

LM ; Left

LM ; Rfight

The world trade organization is sometimes criticized for all of the following reasons except.

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If reduces the sovereignty of member countries.

Favors free trade over the quality of the environment

It has no way to solve trade disputes among member countries.

It is a "puppet" of multinational corporations

An increase in costs will

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Shift aggregate demand

Shift aggregate supply

Reduce the natural rate of unemployment

Increases the productivity of employees

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