Objectives of past papers of Economics-I - Page 2

huma gillani · #11 Sunday, March 06, 2011

Hey Zumar khan....lets solve these mcqs and help each other to get at least 20 solid marks in the paper :-)

zumar khan · #12 Sunday, March 06, 2011

my goodness!
ooookay, i'll try.
one thing is for sure ''i am counting on you''.

huma gillani · #13 Sunday, March 06, 2011

Quote:

Originally Posted by huma gillani

ECONOMICS-I
PAPER 2000
COMPULSORY QUESTION
3. Write only the correct answers in the Answer Book. Don’t reproduce the questions.

(1) A firm’s monopolistic position is strengthened by:
(a) Low elasticity of demand for its product.
(b) High elasticity of demand for its product.
(c) Constant elasticity of demand.
(d) None of the above.

(2) The overall Budget Deficit is financed from:
(a) External borrowing
(b) Non-Bank borrowing domestically
(c) Bank borrowing plus the above two at (a) and (b)
(d) None of the above.

(3) Devaluation leads to:
(a) Increase in imports (b) ‘ Increase in exports
(c) Decline in imports (d) Nona of the above.

(4) guild-up ‘of Foreign exchange reserves leads to:
(a) Decrease in money supply
(b) Increase in money supply
(c) Contraction in money supply
(d) None of the above.

(5) . monopolist would maximize profit at that level’ of production where:
(a) His/her average cost of production equals his/her marginal revenue
(b) marginal cost of production equal marginal ‘revenue
(c) Average cost equal average revenue
(d) None of the above.

(6) Cost push inflation results from: -
(a) Enhancement in wage bill
(b) Increase in the cost of inputs going into product ion
(c) Increase in the international prices of imports
(d) None of the above.

(7) Balance of trade deficit refers to:
(a) Difference between receipts from exports of goods and services and the, payments for imports of goods and services.
(b) Difference between commodity export earnings versus payment for commodity imports.

(8) Health of a country’s economy is indicated by:
(a) Number of doctors per 1.000 population
(b) Per capita income
(c) Literacy rate (d) None of the above.

(9) According to classical theory of employment Laissez Faire System of enterprise:
(a) Ensures continuous Full - Employment
(b) Leads to general over production
(c) Leads to investment higher than savings,
(d) None of the above.

(10) Saving means:
(a) Part of income for investment
(b) Income for boarding
(c) Non-consumption of income in the current period
(d) None of the above.

(11) Thee eziee of GDP in nominal terms refer to:
(a) Natioal, output iz~ ~a]. te~m~
(b) National output in prices prevaiLing in market
(c) Output at constant prices
(d) None of the above.

(12) Rs. 100 note has value because:
(a) It has intrinsic value
(b) State Bank guarantees it
(c) Its holder can exchange it for goods and services
(d) None of the above.

(13) In 25 years (1960-85) Pakistan’s Per Capita income:
(a) More than doubled (b) Less than doubled
(c) Did not show more than 70% increase (d) None of the above.

(14) All economic models are based on:
(a) Realistic assumptions
(b) Assumptions which can never be perfectly realistic
(c) Unrealistic assumptions
(d) None of the above.

(15) Terms of Trade improvement if:
(a) Unit value of i#t~Orts goes d6wn
(b) Unit value of 6*~rts go up
(c) Relative value b~ exports ~O higher thäi’~ that of imports
(d) None of the abO~V6.

(16) An important policy instrument tO influence commercial banks is:
(a) Open market operations
(b) Changing reserve ratios of co~tnercial ba~riks
(c) Moral persuasion
(d) None of the above.

(17) Expansion in money supply stems f torn:
(a) Increasing the cost of bank credit
(b) Reducing availability of bank credit
(c) Reducing the financial cost of bank credit
(d) None of the above.

(18) During the 1980’s empirical evidence indicates that:
(a) Poverty re-emerged in Pakistan
(b) Good growth brought down poverty in Pakistan
(c) Poverty situation showed no change
(d) None of the above.

(19) Expansion in international trade is preferable over:
(a) Foreign aid (b) Project assistance
(c) Commodity assistance by foreign donors (d) None of the above.

(20) Supply factors in economic growth, are:
(a) Manpower (b) Stock of capital
(c) Technology and skills (d) None of the above

1. i don't know

2. c

3. b

4. b

5. b

6. b

7. a

8. b

9. a

10. c

11. b or c

12. a or c

13. c

14. b

15. c

16. b

17. a

18. i don't know

19. b

20. c

huma gillani · #14 Sunday, March 06, 2011

Quote:

Originally Posted by huma gillani

PAPER 2001
COMPULSORY QUESTION
8. Write only the correct answer in the Answer Book. Do not reproduce the questions.

(1) Budgetary Deficit refers to:
(a) Total Revenue Receipts minus Total Expenditures
(b) Fiscal Deficit minus Interest Payments
(c) Total Receipts (Revenue Account + Capital Account) Minus Total Expenditure (Revenue + Capital)
(d) None of the above

(2) Increase in the number of buyers in the market would lead to a shift of the demand curve to:
(a) The right
(b) The left
(c) Upwards along the curve
(d) None of the above

(3) Balance of Trade Deficit refers to:
(a) Excess of payments for import of goods and services over receipts from exports of goods and services.
(b) Excess of receipts from commodity exports minus payments of imports of goods
(c) Payments for commodity imports minus receipts from commodity exports
(d) None of the above

(4) A monopolist gains more if:
(a) Elasticity of demand for his product is low comparatively
(b) Elasticity of demand for his product is high comparatively
(c) Demand elasticity does not change
(d) None of the above

(5) Devaluation of Pak. Rupee in the 1990’s led to:
(a) Increase in exports
(b) Increase in imports
(c) Increase in both exports and imports
(d) None of the above

(6) Most sophisticated models of economics growth are based on:
(a) Realistic assumption
(b) Unrealistic assumptions
(c) On assumptions, at least some of which are extremely difficult to be proved as valid.
(d) None of the above

(7) Real GDP refers to:
(a) GDP, at constant prices
(b) GDP, at current prices over time
(c) GDP, at nominal prices over time
(d) None of the above

(8) Terms of trade refer to:
(a) Unit price of commodity import
(b) Value of exports vs. Value of imports.
(c) Exchange rate applicable to foreign trade of a country
(d) None of the above

(9) Cost-push inflation is the result of:
(a) Increase in the production cost
(b) Increase in the price of industrial production
(c) Escalation of international prices
(d) None of the above

(10) Competitive market comprises:
(a) Large number of buyers
(b) Large number of firms
(c) Large number of both buyers and producers
(d) None of the above

(11) A monopolist maximizes his profit at a point where:
(a) His average cost curve meets the marginal revenue curve.
(b) His marginal cost = marginal revenue
(c) His average cost = market price of market
(d) None of the above

(12) Under perfect competition, a firm would maximize profit at a point where:
(a) Average revenue = average cost
(b) Marginal cost = average revenue
(c) Marginal cost = marginal revenue
(d) None of the above

(13) Foreign trade differs from domestic trade:
(a) Because of terms of trade
(b) Due to differences in production costs
(c) Because of territorial differences
(d) None of the above

(14) World Trade Organization is:
(a) The same thing as UNCTAD
(b) The same as WHO
(c) A replacement of UNCTAD
(d) None of the above

(15) Major sources of revenue in Pakistan’s Budget:
(a) Have not changed in the 1990’s
(b) Have drastically changed in the nineties
(c) Have changed slightly in the nineties
(d) None of the above

(16) Main heads of expenditure in Pakistan's Budget (in ascending order) are:
(a) Foreign debt, Development, Defence.
(b) Defence, foreign debt, development
(c) Development, defence and foreign debt
(d) None of the above

(17) Increase in foreign exchange reserves causes:
(a) Inflation
(b) Deflation
(c) No increase in price level
(d) None of the above

(18) Pakistan’s Budget deficit is financed by:
(a) Revenue Budget surplus
(b) Borrowing (both bank and non-bank)
(c) Foreign resource inflow
(d) None of the above

(19) Most important economic indicator of the health of an economy is:
(a) Income per capita
(b) National output
(c) Literacy rate
(d) None of the above

(20) Most important catalyst in economic growth is:
(a) Savings and investments
(b) Technology and skills
(c) Both at (a) and (b)
(d) None of the above

1. d

2. a...maybe...because both, price and demand have inverse relation according to law of demand

3. a

4. b...maybe

5. d

6. b or c

7. b

8. b

9. a

10. c

11. b

12. c

13. b or c

14. b or d

15. a

16. b

17. a

18. b or c...more chances are of b

19. a

20. c

huma gillani · #15 Sunday, March 06, 2011

PAPER 2002
COMPULSORY QUESTION
8. Write only the correct answer in the Answer Book. Do not reproduce the questions.

(1) Two commodities are considered to be perfect substitutes for each other if the elasticity of substitution is:
(a) Positive

(b) Negative
(c) Infinite
(d) None of these

(2) A straight – line downward sloping demand curve implies that, as price falls, the elasticity of demand:
(a) Increases
(b) Decreases
(c) Remains the same
(d) None of these

(3) Which of the following is often considered to be inconsistent with the notion of perfect competition?
(a) Large number of firms
(b) Free entry
(c) Complete mobility
(d) None of these

(4) Currently total investment as percentage of GDP in Pakistan is:
(a) 12.9
(b) 14.9....i dont know..its a tukka
(c) 16.9
(d) None of these

(5) A purely monetary explanation of the business cycle is proposed by:
(a) Hawtrey
(b) Schumpeter
(c) Hansen
(d) None of these

(6) The exogenous variable in the income equation C + I + G = Y is:
(a) C
(b) I
(c) G
(d) None of these because Y is the exogenous variable in the above income euation

(7) The Lorenz curve describes:
(a) Income distribution
(b) The interest rate
(c) The marginal efficiency of capital
(d) None of these

(8) A stable equilibrium requires that the marginal propensity to consume is:
(a) Less than zero
(b) Zero
(c) One maybe
(d) None of these

(9) International trade during the 19th century was characterized by:
(a) Extensive barriers to trade
(b) Operation of the gold standard i am not sure
(c) A small volume of international trade
(d) None of these

(10) The type of business in which an individual has unlimited responsibility for the debts of the organization is:
(a) Partnership
(b) Corporation
(c) Monopoly
(d) None of these

(11) Which one of the following types of taxes is the most regressive?
(a) Income taxes
(b) Sales taxes
(c) Excise taxes
(d) None of these

(12) An Engel curve is based on which one of the following assumptions?
(a) Constant prices, varying incomes
(b) Constant prices, Constant incomes
(c) Constant incomes, varying prices
(d) None of these

(13) The largest trading partner of Pakistan is:
(a) Italy
(b) Hong Kong
(c) Germany
(d) None of these

(14) Of the following which one is a characteristic of monopolistic competition?
(a) Standardized product
(b) Comparatively easy entry
(c) Little non-price competition
(d) None of these

(15) In the long run:
(a) Fixed costs will be greater than variable costs
(b) Variable costs will be greater than fixed costs
(c) All costs are variable costs
(d) None of these

(16) Currently the total export value of Pakistan is:
(a) $ 10 billions i don't know, its a guess
(b) $ 9 billions
(c) $ 8 billions
(d) None of these

(17) A competitive firm will maximize profits at the output where:
(a) The difference between price and marginal cost is highest
(b) Price is higher than the average total cost by the largest amount
(c) Total revenues and total costs are exactly equal
(d) None of these

(18) Structural unemployment can be eliminated by:
(a) Training the technologically unemployed
(b) Increased federal expenditures
(c) An increase in the general credit level
(d) None of these

(19) Public utilities tend to be:
(a) Inefficient maybe
(b) Natural monopolies
(c) Subject to increasing costs
(d) None of these

(20) Which one of the following is incorrectly matched?
(a) Joan Robinson --- Imperfect Competition
(b) Edward Chamberlain --- Monopolistic Competition
(c) Vilfredo Pareto --- Welfare Economics
(d) None of these

huma gillani · #16 Sunday, March 06, 2011

PAPER 2003
COMPULSORY QUESTION
8. Write only the correct answer in the Answer Book. Do not reproduce the questions.

(1) Total revenue receipts are maximum at that point on a demand curve where price elasticity is:
(a) Increasing
(b) Decreasing
(c) Unitary
(d) None of these
I DON'T KNOW

(2) Which of the following products will have an elastic demand?
(a) Flour
(b) Cloth
(c) Honda city

(d) None of these

(3) Price controls are:
(a) Necessary for consumer’s welfare
(b) A must to check inflation
(c) Doomed to fail
(d) None of these

(4) Increase in minimum wage:
(a) Helps in controlling unemployment
(b) Increases unemployment
(c) Reduces wage bill
(d) None of these

(5) An indifference curve gives:
(a) The actual combination of goods that consumer chooses
(b) The minimum choice of the consumer
(c) The highest level of satisfaction
(d) None of these

(6) MRSxy being 6 means:
(a) Consumer is willing to give up 6 units of x for one of y
(b) Preference for y is 6 times that of x
(c) Both of the above
(d) None of these

(7) Consider cardinal measure of utility, increase in consumption will:
(a) Increase marginal utility
(b) Will not average utility
(c) Both (a) and (b)
(d) None of these

(8) In pure competition
(a) Strong rivalries exist
(b) Cartels are formed
(c) Both (a) and (b)
(d) None of these

(9) National incomes include:
(a) Undistributed corporate profits
(b) Fringe benefits
(c) Both (a) and (b)
(d) None of these

(10) Personal income is obtained by adding which item(s) to national income:
(a) Govt. transfer payments
(b) Business transfer payments
(c) Both (a) and (b)
(d) None of these

(11) Which of the following is a stock variable?
(a) Gross private domestic investment
(b) Personal savings
(c) Both (a) and (b)
(d) None of these

(12) Find out the true statement(s):
(a) When aggregate supply exceeds aggregate demand, output rises.
(b) If intended investment exceeds savings, output falls
(c) Both (a) and (b)
(d) None of these

(13) When un-intended investment is positive:
(a) Output tends to rise
(b) Output tends to fail
(c) Output is in equilibrium maybe

(d) None of these

(14) With no government and foreign trade sectors, savings always equals:
(a) Intended investment
(b) Realized investment
(c) Both (a) and (b)
(d) None of these

(15) If MPC = 2/3, the investment multiplier is:
(a) 2/3
(b) 1/3
(c) 3/2
(d) None of these as i calculate, the answer is 3

(16) Find out the true statement(s):
(a) When consumption function is linear, the mpc=apc
(b) The short run consumption function has a steeper slope that that of the LR
(c) Both (a) and (b)
(d) None of these

(17) If Union Bank has demand deposits of Rs. 25 million, no time deposits and required reserves of Rs. 7.5 million, the legal reserve requirement ration must be:
(a) 3.3 %
(b) 33.3 %
(c) 40 %
(d) None of these
I DON'T KNOW

(18) Which of the following is likely to be longer for monetary policy that for fiscal policy?
(a) The implementation lag
(b) The recognition lag
(c) Both (a) and (b)
(d) None of these

(19) The number of income tax payers in Pakistan is:
(a) 2 million
(b) 0.7 million

(c) 1 million
(d) None of these

(20) The impact and incidence of sales tax is:
(a) On the consumer
(b) On the seller
(c) On the producer
(d) None of these

zumar khan · #17 Monday, March 07, 2011

good work Miss.
i am still thinking from where to start.

keep it up.

marj · #18 Tuesday, March 29, 2011

Thank you soo much for all these objectives. BUt there is one serious problem ! What are the exact answer for these objectives ? I mean to rectify there must be the correct answers written at the bottom. Its a humble request if you can paste the answer too.

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