1 - In 2003, the UN Development Program estimated that a 1-percent LDC per capita consumption growth, with income inequality unchanging, would reduce the poverty percentage by _________ percent yearly?
1 - In 2003, the UN Development Program estimated that a 1-percent LDC per capita consumption growth, with income inequality unchanging, would reduce the poverty percentage by _________ percent yearly?
2
2 - A value of 1 in Gini index represents ?
2 - A value of 1 in Gini index represents ?
maximum inequality
3 - Indices of income distribution measure ?
3 - Indices of income distribution measure ?
relative poverty
4 - _________ is below the income that secures the bare essentials of food clothing and shelter ?
4 - _________ is below the income that secures the bare essentials of food clothing and shelter ?
Absolute poverty
5 - A government might use tax to ?
5 - A government might use tax to ?
Discourage consumption of merit goods
6 - In a regressive tax system ?
6 - In a regressive tax system ?
The average rate of tax falls as income increase
7 - If the economy grows the government's budget position will automatically ?
7 - If the economy grows the government's budget position will automatically ?
worsen
8 - If the marginal rate of tax is 40% and consumers income increase from Rs10,000 to Rs12,000 ?
8 - If the marginal rate of tax is 40% and consumers income increase from Rs10,000 to Rs12,000 ?
The total tax paid will be Rs4,800
9 - A reflationary (expansionist) fiscal policy could include ?
9 - A reflationary (expansionist) fiscal policy could include ?
Increased lending by the banks
10 - Over-funding is when the State Bank of Pakistan ?
10 - Over-funding is when the State Bank of Pakistan ?
sells more government bonds than are required to finance the PSBR
11 - If the State Bank of Pakistan wished to pursue a tight monetary policy it would ?
11 - If the State Bank of Pakistan wished to pursue a tight monetary policy it would ?
buy government securities on the open market
12 - Goodhart's Law suggests that ?
12 - Goodhart's Law suggests that ?
controlling one part of the money supply will merely result in that item becoming less important
13 - As the required reserve ratio is decreased the money multiplier ?
13 - As the required reserve ratio is decreased the money multiplier ?
increase
14 - The parable of Riding a Switchback suggest that stabilizing policy ?
14 - The parable of Riding a Switchback suggest that stabilizing policy ?
is stimulating or contracting the economy at the wrong times
15 - The implementation lag for monetary policy is generally ?
15 - The implementation lag for monetary policy is generally ?
much shorter than it is for fiscal policy
16 - The budget deficit tends to decrease then ?
16 - The budget deficit tends to decrease then ?
GDP increase
17 - Automatic stabilizers act to ______ government expenditures and _______ government revenue during an expansionary period?
17 - Automatic stabilizers act to ______ government expenditures and _______ government revenue during an expansionary period?
decrease; increase
18 - Net taxes are ?
18 - Net taxes are ?
Taxes paid firms and households to the government minus the transfer payments made to firms and household
19 - As an economy grows ?
19 - As an economy grows ?
The government's budget position should automatically worsen
20 - The public Sector Net Cash Requirement (PSNCR) is ?
20 - The public Sector Net Cash Requirement (PSNCR) is ?
A measure of the country's budget position
21 - The marginal rate of tax paid is ?
21 - The marginal rate of tax paid is ?
Change in the tax paid / change in income
22 - Imagine there is no tax on income up to Rs 1000 after that there is a tax of 505 what is the average tax rate on an income of Rs 20,000 ?
22 - Imagine there is no tax on income up to Rs 1000 after that there is a tax of 505 what is the average tax rate on an income of Rs 20,000 ?
0.2
23 - Fiscal drag occurs when ?
23 - Fiscal drag occurs when ?
Tax bands do not increase with inflation
24 - By controlling the monetary base economists mean ?
24 - By controlling the monetary base economists mean ?
making banks keep a certain % of their assets as M0
25 - If the state Bank of Pakistan wished to pursue an expansionary monetary policy it would ?
25 - If the state Bank of Pakistan wished to pursue an expansionary monetary policy it would ?
buy government securities on the open market
26 - By financial crowding out economist mean ?
26 - By financial crowding out economist mean ?
government borrowing drives up interest rates
27 - The idea that the money supply should change to accommodate changes in aggregate demand is associated with the idea of ?
27 - The idea that the money supply should change to accommodate changes in aggregate demand is associated with the idea of ?
Milton Friedman
28 - The multiple by which total deposits can increase for every pound increase in reserves is the ?
28 - The multiple by which total deposits can increase for every pound increase in reserves is the ?
Money multiplier
29 - The response lag of stabilization policy represents ?
29 - The response lag of stabilization policy represents ?
the time that it takes for the economy to adjust to the new conditions after a new policy has been implemented
30 - Time lags which often erode effectiveness of monetary and fiscal policy measures represent ?
30 - Time lags which often erode effectiveness of monetary and fiscal policy measures represent ?
delays in the response of the economy is stabilization policy
31 - The negative effect on the economy that occurs when average tax rates increase because taxpayers have moved into higher income brackets during an expansion is ?
31 - The negative effect on the economy that occurs when average tax rates increase because taxpayers have moved into higher income brackets during an expansion is ?
the Laffer curves
32 - Automatic stabilisers act to ____ government expenditures and ____ government revenues during recessions ?
32 - Automatic stabilisers act to ____ government expenditures and ____ government revenues during recessions ?
increase; decrease
33 - Fiscal Policy refers to ?
33 - Fiscal Policy refers to ?
The spending and taxing policies used by the government to influence the economy
34 - The abolition of income tax would probably ______ the number of workers in employment and _______ the equilibrium rate of unemployment?
34 - The abolition of income tax would probably ______ the number of workers in employment and _______ the equilibrium rate of unemployment?
increase reduce
35 - Policies to reduce unemployment by reducing union power, tax cuts, reductions in unemployment benefit and investment subsidies are examples of ?
35 - Policies to reduce unemployment by reducing union power, tax cuts, reductions in unemployment benefit and investment subsidies are examples of ?
Supply-side policies
36 - The equilibrium rate of unemployment at any real wage, is the difference between ______ and ______?
36 - The equilibrium rate of unemployment at any real wage, is the difference between ______ and ______?
those willing to work at the going wage labor supply
37 - A person who is made redundant because of the contraction of an industry is a victim of ?
37 - A person who is made redundant because of the contraction of an industry is a victim of ?
structural unemployment
38 - The Short run Phillips curve can shift in response to changes in ?
38 - The Short run Phillips curve can shift in response to changes in ?
Inflationary expectations
39 - The Phillips curve shows the trade-off between _____ and _____?
39 - The Phillips curve shows the trade-off between _____ and _____?
the inflation rate, the unemployment rate
40 - During Periods of rising inflation and rising interest rates we expect the demand for real cash to ?
40 - During Periods of rising inflation and rising interest rates we expect the demand for real cash to ?
rise
41 - The quantity theory of money says that changes in ____lead to equivalent changes in ____ but have no effect on ______?
41 - The quantity theory of money says that changes in ____lead to equivalent changes in ____ but have no effect on ______?
nominal money, the price level, output and employment
42 - Expansionary fiscal policy in the classical model will cause aggregate demand to _______ potential output?
42 - Expansionary fiscal policy in the classical model will cause aggregate demand to _______ potential output?
remain equal to
43 - At the intersection of AD and AS equilibrium is achieved in ?
43 - At the intersection of AD and AS equilibrium is achieved in ?
all of these
44 - In the classical model, potential output cannot be increased by ?
44 - In the classical model, potential output cannot be increased by ?
monetary growth
45 - The AD schedule indicates that _______ inflation is associated with ________ output?
45 - The AD schedule indicates that _______ inflation is associated with ________ output?
higher, lower
46 - All the following are types of monetary policy expect ?
46 - All the following are types of monetary policy expect ?
a balanced budget
47 - The relative-wage explanation for the existence of downwardly sticky wages emphasizes ?
47 - The relative-wage explanation for the existence of downwardly sticky wages emphasizes ?
the contention that workers in one industry may be unwilling to accept a wage cut unless they know that workers in other industries are receiving similar cuts
48 - When economists use the term real business cycle theory they are suggesting that business cycles are caused by ?
48 - When economists use the term real business cycle theory they are suggesting that business cycles are caused by ?
Shifts in aggregate supply
49 - Doubts about the natural and the existences of the Phillips curve arose in the 1970s when the economy experienced ?
49 - Doubts about the natural and the existences of the Phillips curve arose in the 1970s when the economy experienced ?
simultaneously high rates of inflation and unemployment
50 - If input price prices adjusted very rapidly to output prices as classical economists argue the Philips curve would be ?
50 - If input price prices adjusted very rapidly to output prices as classical economists argue the Philips curve would be ?
Vertical or nearly vertical
51 - The Phillips curve indicates that there is a ?
51 - The Phillips curve indicates that there is a ?
negative relationship between the inflation rate and the unemployment rate
52 - Potential GDP is the level of aggregate output ?
52 - Potential GDP is the level of aggregate output ?
that can be sustained in the long run without inflation
53 - In the long run, the Phillips curve will be vertical at the natural rate of unemployment if ?
53 - In the long run, the Phillips curve will be vertical at the natural rate of unemployment if ?
the long run aggregate demand curve is vertical at potential GDP
54 - According to the classical economists, those who are not working ?
54 - According to the classical economists, those who are not working ?
have chosen not to work at the market wage
55 - The classical view of the labor market is basically consistent with the assumption of _________ aggregate supply curve?
55 - The classical view of the labor market is basically consistent with the assumption of _________ aggregate supply curve?
a vertical (or almost vertical)
56 - Possible causes of involuntary unemployment are ?
56 - Possible causes of involuntary unemployment are ?
all of the above
57 - If the income tax rate changes from 30% to 40% on income over Rs30,000 and a person's income is Rs 31,000 then her marginal tax rate is ?
57 - If the income tax rate changes from 30% to 40% on income over Rs30,000 and a person's income is Rs 31,000 then her marginal tax rate is ?
0.4
58 - If somebody is prepared to work at the going wage rate but cannot find work then they are victims of ?
58 - If somebody is prepared to work at the going wage rate but cannot find work then they are victims of ?
voluntary unemployment
59 - We would normally expect the size of the labor force to be _____ than the number or workers willing to accepts job offers at any real wage rate ?
59 - We would normally expect the size of the labor force to be _____ than the number or workers willing to accepts job offers at any real wage rate ?
Larger
60 - An advocate of the classical model of the economy would claim that unemployment is created when the ____ is above its equilibrium level in the ______?
60 - An advocate of the classical model of the economy would claim that unemployment is created when the ____ is above its equilibrium level in the ______?
wage rate, labor market
61 - The costs of inflation are ?
61 - The costs of inflation are ?
all of the above
62 - The long-run Phillips curve is ____ at the ____?
62 - The long-run Phillips curve is ____ at the ____?
vertical equilibrium rate of unemployment
63 - Governments may contribute to inflationary pressure because of building up large ?
63 - Governments may contribute to inflationary pressure because of building up large ?
budget deficits
64 - In the events of an increase in the international price of oil that encouraged the central bank to accept lower real interest rates, inflation would most likely ?
64 - In the events of an increase in the international price of oil that encouraged the central bank to accept lower real interest rates, inflation would most likely ?
increase
65 - The Keynesian model is a good guide to ____ behavior and the classical model describes behavior in ______?
65 - The Keynesian model is a good guide to ____ behavior and the classical model describes behavior in ______?
short-term long run
66 - The equilibrium inflation rate is determined by the intersection of _____ and _____?
66 - The equilibrium inflation rate is determined by the intersection of _____ and _____?
AD, AS
67 - If a person thinks they are better off after a 10% wage increase, and all prices have risen 10% then they are experiencing ?
67 - If a person thinks they are better off after a 10% wage increase, and all prices have risen 10% then they are experiencing ?
inflation illusion
68 - The classical model of macroeconomics assumes ?
68 - The classical model of macroeconomics assumes ?
B and C
69 - Even though explicit contracts may lead to layoffs during recessions explicit contracts may still be efficient because such contracts ?
69 - Even though explicit contracts may lead to layoffs during recessions explicit contracts may still be efficient because such contracts ?
minimize negotiation costs
70 - An unspoken agreement between workers and firms that the firm will not cut wages is known as ?
70 - An unspoken agreement between workers and firms that the firm will not cut wages is known as ?
an implicit or social contract
71 - The expectations augmented Phillips curve was the Work of which group of economists ?
71 - The expectations augmented Phillips curve was the Work of which group of economists ?
Monetarists
72 - The view of the Phillips curve that prevailed in the 1960s implied that policies that ?
72 - The view of the Phillips curve that prevailed in the 1960s implied that policies that ?
lower unemployment rate will tend to raise the inflation rate
73 - The Phillips curve is a graph showing the relationship between ?
73 - The Phillips curve is a graph showing the relationship between ?
the inflation rate and the unemployment rate
74 - Which school of economic thought suggested that one possible cause of inflation was a ‘push' from the cost side ?
74 - Which school of economic thought suggested that one possible cause of inflation was a ‘push' from the cost side ?
Keynesian.
75 - The measured unemployment rate can be pushed below the natural rate, but ?
75 - The measured unemployment rate can be pushed below the natural rate, but ?
only in the short run, and not without inflation
76 - The natural rate of unemployment is generally thought to be the sum of ?
76 - The natural rate of unemployment is generally thought to be the sum of ?
frictional unemployment and structural unemployment
77 - Those who hold the classical view of the labor market are likely to believe that ?
77 - Those who hold the classical view of the labor market are likely to believe that ?
neither monetary nor fiscal policy will have an effect on output and employment
78 - one of the tenets of the classical view of the labor market is that the wage adjustments that are necessary to clear the labor market occur ?
78 - one of the tenets of the classical view of the labor market is that the wage adjustments that are necessary to clear the labor market occur ?
quickly
79 - For a competitive firm, its short run supply curve is ______ and its long run supply curve is _____?
79 - For a competitive firm, its short run supply curve is ______ and its long run supply curve is _____?
SMC above SAVC, LMC above LAC
80 - In the short run a firm will produce zero output if ?
80 - In the short run a firm will produce zero output if ?
price is less than short run average variable cost
81 - Short run average total costs are equals to the sum of ____ and _____?
81 - Short run average total costs are equals to the sum of ____ and _____?
Short run average variable costs, profit run average fixed costs
82 - When average cost is falling marginal cost is ________ and when average cost is rising marginal cost is?
82 - When average cost is falling marginal cost is ________ and when average cost is rising marginal cost is?
less than average cost, greater than average cost
83 - If a long run average cost curve is falling form left to right this is an example of ?
83 - If a long run average cost curve is falling form left to right this is an example of ?
increasing returns to scale
84 - In monopolistic competition ?
84 - In monopolistic competition ?
There is one seller
85 - If a firm takes over a competitor then, according to porter's 5 forces model ?
85 - If a firm takes over a competitor then, according to porter's 5 forces model ?
Supplier power is higher
86 - In monopolistic competition of firms are making abnormal profit other firms will enter and ?
86 - In monopolistic competition of firms are making abnormal profit other firms will enter and ?
The marginal cost will shift outwards
87 - Which of the following is not one of the four Ps in marketing ?
87 - Which of the following is not one of the four Ps in marketing ?
Product
88 - In monopolistic competition ?
88 - In monopolistic competition ?
The marginal revenue is below the demand curve and diverges
89 - in long-run equilibrium in a competitive market, firms are operating at ?
89 - in long-run equilibrium in a competitive market, firms are operating at ?
all of these answers are correct
90 - If an input necessary for production is in limited supply so that an expansion of the industry raises costs for all existing firms in the market, then the long-run market supply curve for a good could be ?
90 - If an input necessary for production is in limited supply so that an expansion of the industry raises costs for all existing firms in the market, then the long-run market supply curve for a good could be ?
upward sloping
91 - In the long-run some firms will exit the market if the price of the good offered for sale is less than ?
91 - In the long-run some firms will exit the market if the price of the good offered for sale is less than ?
average total cost
92 - A grocery store should close at night if the ?
92 - A grocery store should close at night if the ?
variable costs of staying open are greater than the total revenue due to staying open
93 - In the short run, the competitive firm's supply curve is the portion of the marginal cost curve that lies above the average variable cost curve?
93 - In the short run, the competitive firm's supply curve is the portion of the marginal cost curve that lies above the average variable cost curve?
portion of the marginal-cost curve that lies above the average variable cost curve
94 - The competitive firm maximize profit when it produces output up to the point where ?
94 - The competitive firm maximize profit when it produces output up to the point where ?
marginal cost equals marginal revenue
95 - If a competitive firm doubles its output its total revenue ?
95 - If a competitive firm doubles its output its total revenue ?
doubles.
96 - Which of the following is not a characteristic of a competitive market ?
96 - Which of the following is not a characteristic of a competitive market ?
Firms generate small but positive economic profits in the long run
97 - In the long run in perfect competition ?
97 - In the long run in perfect competition ?
price = average cost = marginal cost
98 - In perfect competition ?
98 - In perfect competition ?
There are many buyers and sellers
99 - In perfect competition ?
99 - In perfect competition ?
Short run abnormal profits are competed away by firms entering the industry
100 - In perfect competition ?
100 - In perfect competition ?
The products firm offer is very similar
101 - In perfect competition ?
101 - In perfect competition ?
The price equals the marginal revenue
102 - A competitive firm produces a level of output at which ?
102 - A competitive firm produces a level of output at which ?
price equals marginal cost
103 - A competitive firm demand curve is ?
103 - A competitive firm demand curve is ?
Horizontal
104 - For perfect competition to work there must be ?
104 - For perfect competition to work there must be ?
all of the above
105 - In a competitive industry each buyer and seller ?
105 - In a competitive industry each buyer and seller ?
is a price taker
106 - Holding all factors constant except one and increasing a variable factor is expected to lead to steadily decreased marginal product of that factor, this is an example of ?
106 - Holding all factors constant except one and increasing a variable factor is expected to lead to steadily decreased marginal product of that factor, this is an example of ?
The law of diminishing returns
107 - The short run marginal cost curve cuts the short run total cost curve and short run average variable cost curve ?
107 - The short run marginal cost curve cuts the short run total cost curve and short run average variable cost curve ?
At their lowest points
108 - The firms long run output decision will be where ?
108 - The firms long run output decision will be where ?
marginal revenue equals long run marginal cost
109 - If a firm is not operating at the output necessary to achieve all scale economies, it has not achieved its ?
109 - If a firm is not operating at the output necessary to achieve all scale economies, it has not achieved its ?
Minimum efficient scale
110 - Decrease returns to scale means that _____ as ______?
110 - Decrease returns to scale means that _____ as ______?
long run average cost rises, output rises
111 - A production is technique is technically efficient if ?
111 - A production is technique is technically efficient if ?
there is no way to make a given output using less of one input and no more of the other inputs
112 - In marketing "USP" stands for ?
112 - In marketing "USP" stands for ?
Unique Selling Proposition
113 - In Porter's five force model conditions are more favorable for firms within an industry if ?
113 - In Porter's five force model conditions are more favorable for firms within an industry if ?
Substitute threat is high
114 - Effective branding will tend to make ?
114 - Effective branding will tend to make ?
Supply more income elastic
115 - In monopolistic competition firms profit maximize where ?
115 - In monopolistic competition firms profit maximize where ?
Marginal revenue = Average cost
116 - In monopolistic competition ?
116 - In monopolistic competition ?
There are barriers to entry to prevent entry
117 - If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause ?
117 - If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause ?
an increase in the number of firms in the market but no increase in the price of the good
118 - If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?
118 - If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?
perfectly elastic
119 - The long-run market supply curve ?
119 - The long-run market supply curve ?
is always more elastic than the short-run market supply curve.
120 - In the long run, the competitive firm's supply curve is the ?
120 - In the long run, the competitive firm's supply curve is the ?
portion of the marginal cost curve that lies above the average total cost curve
121 - If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost the firm could increase profit if it ?
121 - If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost the firm could increase profit if it ?
increased production
122 - For a competitive firm, marginal revenue is ?
122 - For a competitive firm, marginal revenue is ?
equal to the price of the good sold
123 - Which of the following market would most closely satisfy the requirements for a competitive market ?
123 - Which of the following market would most closely satisfy the requirements for a competitive market ?
milk
124 - For a perfectly competitive firm ?
124 - For a perfectly competitive firm ?
Price equals marginal revenue
125 - In the short run firms in perfect competition will still produce provided ?
125 - In the short run firms in perfect competition will still produce provided ?
The price covers average variable cost
126 - In the long run in perfect competition ?
126 - In the long run in perfect competition ?
Firms are productively efficient
127 - A profit maximizing firm is perfect competition produces where ?
127 - A profit maximizing firm is perfect competition produces where ?
Marginal revenue equals marginal cost
128 - Firms in perfect competition face a?
128 - Firms in perfect competition face a?
perfectly elastic demand curve
129 - Based on the 2010 population survey four of the five most populous countries include ?
129 - Based on the 2010 population survey four of the five most populous countries include ?
China, India, Indonesia, and Brazil
130 - ASEAN refers to the ?
130 - ASEAN refers to the ?
Association of South East Asian Nations
131 - Two countries that still rely on the Soviet communist model of development are ?
131 - Two countries that still rely on the Soviet communist model of development are ?
Cuba and North Korea
132 - Which two countries have enjoyed a real per capita growth rate of more than 7% yearly since the 1960s ?
132 - Which two countries have enjoyed a real per capita growth rate of more than 7% yearly since the 1960s ?
Taiwan and South Korea
133 - Why has modern economic growth mainly been in western countries ?
133 - Why has modern economic growth mainly been in western countries ?
the rise of capitalism
134 - More than seventy percent of the population of fast g: owers lives in ?
134 - More than seventy percent of the population of fast g: owers lives in ?
China
135 - Korea's keirestsu-like corporate conglomerates is known as ?
135 - Korea's keirestsu-like corporate conglomerates is known as ?
chaebol
136 - Keiretsu refers to ?
136 - Keiretsu refers to ?
groups of affiliated companies loosely organized around a large bank
137 - The 1993 World Bank study entitled The East Asian Miracle identifies eight high performing Asian economies. Which of the following is not one of them ?
137 - The 1993 World Bank study entitled The East Asian Miracle identifies eight high performing Asian economies. Which of the following is not one of them ?
Vietnam
138 - Based on Mankiw Romer and Weil (1992) with conditional convergence holding fertility rates, education and government spending as a share of GDP constant ?
138 - Based on Mankiw Romer and Weil (1992) with conditional convergence holding fertility rates, education and government spending as a share of GDP constant ?
income per capita in poor countries grows faster than in rich countries
139 - The bourgeoisie refers to ?
139 - The bourgeoisie refers to ?
the capitalist and middle class
140 - Perestroika in the former Soviet Union refers to ?
140 - Perestroika in the former Soviet Union refers to ?
economic restructuring by Gorbachev
141 - On what did the Russian Soviet development model of growth not depend ?
141 - On what did the Russian Soviet development model of growth not depend ?
markets for allocating resources
142 - The 1993 World Bank study entitled The East Asian Miracle (1993) identifies eight high performing Asian economies Which of the following is not one of them ?
142 - The 1993 World Bank study entitled The East Asian Miracle (1993) identifies eight high performing Asian economies Which of the following is not one of them ?
Vietnam
143 - Asian tigers or newly industrializing countries (NICs) of East and Southeast Asia include the following except ?
143 - Asian tigers or newly industrializing countries (NICs) of East and Southeast Asia include the following except ?
China
144 - How has the relative gap between GNP per capita for Western Europe and GNP per capita for African less-developed countries changed from the late nineteenth century to the present ?
144 - How has the relative gap between GNP per capita for Western Europe and GNP per capita for African less-developed countries changed from the late nineteenth century to the present ?
increased
145 - UK GDP would exclude which of the following ?
145 - UK GDP would exclude which of the following ?
Copper purchased by tap manufacturer Bristan
146 - Real GDP is measured in __________ prices while nominal GDP is measured in _________ prices?
146 - Real GDP is measured in __________ prices while nominal GDP is measured in _________ prices?
base year; current year
147 - If a cobbler buys leather for Rs100 and thread for Rs50 and uses them to produce and sell Rs500 worth of shoes to consumers the contribution to GDP is ?
147 - If a cobbler buys leather for Rs100 and thread for Rs50 and uses them to produce and sell Rs500 worth of shoes to consumers the contribution to GDP is ?
Rs500
148 - Gross Domestic Product is the sum of the market value of the ?
148 - Gross Domestic Product is the sum of the market value of the ?
final goods and services
149 - Gross Domestic Product can be measured as the sum of ?
149 - Gross Domestic Product can be measured as the sum of ?
Net National Product Gross National Product, and Disposable personal income
150 - The value of plant and equipment worn out in the process of manufacturing goods and services is measured by ?
150 - The value of plant and equipment worn out in the process of manufacturing goods and services is measured by ?
depreciation
151 - A higher GDP per capita may not means that the quality of life has really improved because ?
151 - A higher GDP per capita may not means that the quality of life has really improved because ?
It measures wealth not income
152 - To adjust from Gross National Product to Net National Product ?
152 - To adjust from Gross National Product to Net National Product ?
Deduct subsidies
153 - In a boom ?
153 - In a boom ?
Supply will increase immediately to match demand
154 - The standard of living is often measured by ?
154 - The standard of living is often measured by ?
Real GDP per capita
155 - Net National Product equals ?
155 - Net National Product equals ?
Gross National Product minus depreciation
156 - If your grandparents buy a newly built retirement home, this transaction would affect ?
156 - If your grandparents buy a newly built retirement home, this transaction would affect ?
investment
157 - How is your purchase in Pakistan of a Rs40,000 BMW automobile that was produced entirely in Germany recorded in the Pakistan's GDP accounts ?
157 - How is your purchase in Pakistan of a Rs40,000 BMW automobile that was produced entirely in Germany recorded in the Pakistan's GDP accounts ?
Consumption in increase by Rs40,000 and net export decreases by Rs40,000
158 - If Pakistan's GDP exceeds Pakistan's GNP, then ?
158 - If Pakistan's GDP exceeds Pakistan's GNP, then ?
foreigners are producing more in the Pakistan then Pakistanis are producing in foreign countries
159 - GDP would include which of the following ?
159 - GDP would include which of the following ?
consulting services
160 - If nominal GDP in 2005 exceeds nominal GDP in 2004, then the production of output ?
160 - If nominal GDP in 2005 exceeds nominal GDP in 2004, then the production of output ?
may have risen fallen, or stayed the same because there is not enough information to determine what happened to real output
161 - Pakistan's Gross Domestic Product (in contrast to Gross National Product) measures the production and income of ?
161 - Pakistan's Gross Domestic Product (in contrast to Gross National Product) measures the production and income of ?
The domestic manufacturing sector only
162 - Which of the following would be excluded from UK GDP fro 2005? The sale of ?
162 - Which of the following would be excluded from UK GDP fro 2005? The sale of ?
a haircut
163 - An example of a transfer payment is ?
163 - An example of a transfer payment is ?
unemployment benefits
164 - In a recession a government ?
164 - In a recession a government ?
Is likely to want to increase supply in the economy
165 - To adjust GDP from market prices to factor cost ?
165 - To adjust GDP from market prices to factor cost ?
Subtract subsidies
166 - GDP plus net property income from abroad equals what ?
166 - GDP plus net property income from abroad equals what ?
GNP
167 - In a recession ?
167 - In a recession ?
Growth is slow
168 - Gross National Product equals ?
168 - Gross National Product equals ?
Gross Domestic Product adjusted for inflation
169 - The Club of Rome Study, The Limits to Growth suggests that as natural resources diminish ?
169 - The Club of Rome Study, The Limits to Growth suggests that as natural resources diminish ?
costs rise, leaving less capital for future investment
170 - The green house effect is the phenomenon by which ?
170 - The green house effect is the phenomenon by which ?
the earth's atmosphere traps infrared radiation
171 - Many environmental resources are public goods, which are characterized by ?
171 - Many environmental resources are public goods, which are characterized by ?
nonrivalry and nonexclusion in consumption
172 - According to Coase's theorem when property rights are well defined and legally enforceable and transactions costs are not prohibitive ?
172 - According to Coase's theorem when property rights are well defined and legally enforceable and transactions costs are not prohibitive ?
participants will organize their transactions
173 - Micheal Roemer's three-sector model shows that growth in the booming export sector I- reduces the price of foreign exchange II- retards other sectors' growth by reducing incentives to export other commodities III- reduces incentives to replace domestic go
173 - Micheal Roemer's three-sector model shows that growth in the booming export sector I- reduces the price of foreign exchange II- retards other sectors' growth by reducing incentives to export other commodities III- reduces incentives to replace domestic go
I, II , III only IV
174 - Which of the following country has 25 percent of the world's estimated oil reserves and the lowest cost production as well as a dominant role in OPEC pricing ?
174 - Which of the following country has 25 percent of the world's estimated oil reserves and the lowest cost production as well as a dominant role in OPEC pricing ?
Saudi Arabia
175 - The government levying taxes on polluters or charging a surcharge for pesticide use are ?
175 - The government levying taxes on polluters or charging a surcharge for pesticide use are ?
internalization of negative spillover effects
176 - Air pollution from automobile exhausts, and water pollution steel plants are examples of ?
176 - Air pollution from automobile exhausts, and water pollution steel plants are examples of ?
negative externalities
177 - Land and natural resources are considered ?
177 - Land and natural resources are considered ?
non-producible
178 - The Genuine Progress indicator is ?
178 - The Genuine Progress indicator is ?
also known as index of Sustainable Economic Welfare per capita
179 - The Montreal Protocal, signed in 1987 and strengthened in 1990 ?
179 - The Montreal Protocal, signed in 1987 and strengthened in 1990 ?
reduces ozone depletion through the cutting of chlorofluorocarbon production
180 - Biodiversity ?
180 - Biodiversity ?
includes genetic species ecosystem and functional diversities
181 - Irreversibility refers to ?
181 - Irreversibility refers to ?
natural resource that cannot be reproduced in the future if we fail to preserve them now
182 - The essential difference between capitalism and socialism is that ?
182 - The essential difference between capitalism and socialism is that ?
capitalism relies on the market to make economic decisions and socialism uses central planning
183 - What is Baran's explanation for underdevelopment in Asia, Africa, and Latin America ?
183 - What is Baran's explanation for underdevelopment in Asia, Africa, and Latin America ?
All of the above
184 - OECD stands for ?
184 - OECD stands for ?
Organization for Economic Cooperation and Development and Development
185 - For Rosentein Rodan a major indivisibility is in ?
185 - For Rosentein Rodan a major indivisibility is in ?
infrastructure
186 - The Vicious circle theory indicates that ?
186 - The Vicious circle theory indicates that ?
poverty perpetuates itself in mutually reinforcing circles on supply and demand sides
187 - The regarding the new classical macroeconomics is hoe realistic is the assumption ?
187 - The regarding the new classical macroeconomics is hoe realistic is the assumption ?
of rational expectations.
188 - It is difficult to determine if the velocity of money is constant over time because ?
188 - It is difficult to determine if the velocity of money is constant over time because ?
whether velocity is constant or not may depend on how the money supply is measure.
189 - The quantity theory of money implies that a given percentage change in the money supply will cause ?
189 - The quantity theory of money implies that a given percentage change in the money supply will cause ?
an equal percentage change in nominal DGP.
190 - People are said to have rational expectations if they ?
190 - People are said to have rational expectations if they ?
Use all available information in forming their expectations.
191 - The hypothesis that people know the true model of the economy and that they use this model to form their expectations of the future is the ?
191 - The hypothesis that people know the true model of the economy and that they use this model to form their expectations of the future is the ?
Rational-expectations hypothesis
192 - The nation that the government can establish the macroeconomic is known as ?
192 - The nation that the government can establish the macroeconomic is known as ?
fine tuning
193 - According of Keynes, the level of employment is determined by ?
193 - According of Keynes, the level of employment is determined by ?
the level of aggregate demand for goods and services
194 - According to classical models, the level of employment is determined primarily by ?
194 - According to classical models, the level of employment is determined primarily by ?
prices and wages
195 - The economists who emphasised wage flexibility as a solution for unemployment were ?
195 - The economists who emphasised wage flexibility as a solution for unemployment were ?
classical economists.
196 - A group of modern economists who believe that institutional factors and confidence strongly influence business behaviour and that expanding demand will usually increase output rather than prices are the ?
196 - A group of modern economists who believe that institutional factors and confidence strongly influence business behaviour and that expanding demand will usually increase output rather than prices are the ?
post-keynesians
197 - A group of modern economists who believe that markets clear very rapidly and that expanding the money supply will always increase prices rather than employment are the ?
197 - A group of modern economists who believe that markets clear very rapidly and that expanding the money supply will always increase prices rather than employment are the ?
new classical school
198 - New classical theories were an attempt to explain ?
198 - New classical theories were an attempt to explain ?
the stagflation of the 1970s
199 - If the demand for money depends on the interest rate the velocity of circulation is ?
199 - If the demand for money depends on the interest rate the velocity of circulation is ?
not constant and the quantity theory of money does not hold.
200 - The persistence of a phenomenon such as unemployment, even then its causes have been removed is called ?
200 - The persistence of a phenomenon such as unemployment, even then its causes have been removed is called ?
hysteresis.
201 - The rational-expectation hypothesis suggests that the forecasts that people make concerning future inflation rates ?
201 - The rational-expectation hypothesis suggests that the forecasts that people make concerning future inflation rates ?
are correct on average, but are subject to errors that are distributed randomly
202 - Rapid increase in the price level during periods of recession of high unemployment are known as ?
202 - Rapid increase in the price level during periods of recession of high unemployment are known as ?
stagflation
203 - The government increase government spending to try to reduce unemployment This is an example of ?
203 - The government increase government spending to try to reduce unemployment This is an example of ?
fine tuning
204 - Keynesian economics became popular because it was able to explain ?
204 - Keynesian economics became popular because it was able to explain ?
The prolonged existence of high unemployment during the Great depression
205 - According to the classical economists the economy ?
205 - According to the classical economists the economy ?
is self-correcting.
206 - Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are ?
206 - Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are ?
sticky prices
207 - Criticisms against the North American Free Trade Agreement include all of the following except ?
207 - Criticisms against the North American Free Trade Agreement include all of the following except ?
wages in the United States will rise relative to Mexican wages
208 - Trade creation will more likely outweigh trade diversion for Country X that forms a customs union if the level of tariffs in Country X prior to the customs union is ________ and the total number of countries forming the customs union is _________?
208 - Trade creation will more likely outweigh trade diversion for Country X that forms a customs union if the level of tariffs in Country X prior to the customs union is ________ and the total number of countries forming the customs union is _________?
relatively high; relatively large
209 - A positive, dynamic effect of economic integration is illustrated by ?
209 - A positive, dynamic effect of economic integration is illustrated by ?
economy-of-scale effect
210 - _________ is said to exist when the formation of a regional trading group leads to an expansion of trade above pregroup levels ?
210 - _________ is said to exist when the formation of a regional trading group leads to an expansion of trade above pregroup levels ?
trade creation
211 - ________ is said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries in favor of member countries ?
211 - ________ is said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries in favor of member countries ?
trade diversion
212 - If A forms a customs union with C, the value of trade diversion will be ?
212 - If A forms a customs union with C, the value of trade diversion will be ?
0
213 - If A imposes a per unit tariff of $10 on imports from both B and C A will import ?
213 - If A imposes a per unit tariff of $10 on imports from both B and C A will import ?
200 units from C
214 - Trade diversion takes place when ?
214 - Trade diversion takes place when ?
economic integration results in a shift in product origin from a lower-cost, nonmember country to a member country having higher costs
215 - The implementation of a common market involves all of the following except ?
215 - The implementation of a common market involves all of the following except ?
a common tax system and monetary union
216 - As of 2002, the ________ became the official currency union of the European Monetary System ?
216 - As of 2002, the ________ became the official currency union of the European Monetary System ?
euro
217 - The implementation of the European Union has ?
217 - The implementation of the European Union has ?
made it harder for Americans of compete against the Germans in the British market
218 - The European Union is an example of a/an ?
218 - The European Union is an example of a/an ?
common market
219 - The European Union has achieved all of the following except ?
219 - The European Union has achieved all of the following except ?
adopted a common fiscal policy for member nations
220 - Under the EU's Common Agricultural Policy, a variable import levy equals the ?
220 - Under the EU's Common Agricultural Policy, a variable import levy equals the ?
amount the which the EU's support price exceeds the world price
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