1st Year Principles of Economics Second half Book Paper

Q1. Multiple choice questions (Attempt all · 15 × 1 = 15)

1. A good thing in public finance:

   1. Expenditures are more than income

   2. Income is more than expenditures

   3. Income is equal to expenditures

   4. 2nd and 3rd

2. During depression:

   1. Employment increases

   2. Prices decrease

   3. Profit increases

   4. Price increase

3. "What performs the functions of money, is money". This definition of money is stated by:

   1. Prof Walker

   2. Prof Marshall

   3. Prof Crowther

   4. Prof Pigou

4. "International balance of payment is all that transaction for which either foreign exchange is spent or received". This definition is stated by:

   1. Marshall

   2. Samuelson

   3. Ricardo

   4. Hicks

5. Amount of money attained by selling marginal product is called:

   1. Average revenue product

   2. Marginal revenue product

   3. Total revenue product

   4. None of the above

6. Which one of the following is not included in the methods of measuring national income:

   1. Method of total according to market prices

   2. Method of total of incomes

   3. Method of total of domestic necessities and desires

   4. Method of total expenditures

7. Which one of the following public expenditures is related to transport:

   1. Police

   2. Defense

   3. Railway

   4. Public education

8. During the phase of depression, level of national income and employment is:

   1. Highest

   2. Falling

   3. Lowest

   4. Increasing

9. Unit of account money in Pakistan is:

   1. Rial

   2. Rupee

   3. Dollar

   4. Pound

10. Balance of visible goods of a country mean:

    1. Quantity of imports & exports

    2. Value of imports & exports

    3. Value of imported & exported goods and services

    4. Value of imported & exported services

11. According to which theory every factor of production gets the reward of its services equal to its marginal product?

    1. Demand and supply theory

    2. Liquidity preference theory

    3. Marginal productivity theory

    4. Uncertainty theory

12. If depreciation is deducted from Gross National Product, we get:

    1. NNP

    2. PI

    3. DPI

    4. GDP

13. The burden of direct tax is on:

    1. Owners

    2. Consumers

    3. Employees

    4. Workers

14. Psychological theory of trade cycles is presented by:

    1. Prof Jevons

    2. Prof Pigou and Bagehot

    3. Prof Keynes

    4. Prof Hawtery

15. "Money is a thing by which payments of agreements of borrowing and pricing are made and general purchasing power is stored in it". This definition of money is stated by the economist:

    1. Prof Marshall

    2. Prof Walker

    3. Prof Keynes

    4. Prof Crowther