APPLIED ECONOMICS RESEARCH CENTRE

UNIVERSITY OF KARACHI
M.A.S / M.S. (M.PHIL.) LEADING TO PH.D. PROGRAMME: 2012-13 (MORNING)

SAMPLE TEST FOR ECONOMISTS Note: The total duration for the test to be conducted on THURSDAY, DECEMBER 29, 2011, would be of two hours READ CAREFULLY THE FOLLOWING INSTRUCTIONS

INSTRUCTIONS The paper contains 80 questions and comprises FOUR sections.

Attempt all questions.

For each correct answer one mark will be awarded while mark will be
deducted for each wrong answer. Write a capital letter ( A E ) for the correct choice in the box against each question on the answer sheet (provided separately to you) and avoid overwriting.

More than one answer to any question in the space provided shall be considered
wrong.

CALCULATORS ARE NOT ALLOWED

ECONOMISTS: 2012-13 (MORNING)

SECTION - I MICROECONOMICS Total Marks: ( 25 )
Q.1 If goods A and B are complements, an increase in the price of good A will leads to A decrease in demand for good B A decrease in the quantity demanded of good B An increase in the price of good B No change in demand for good B because A and B are not substitutes. A rightward shift in the demand for good B A household s demand curve can be derived from A single indifference curve A single budget line A price-consumption line An increase-consumption line The indifference map Assuming that capital is a fixed input and that labour is variable, the total product Curve relates Output to various levels of capital and labour employment Total cost to various levels of labour employment Labour cost to the level of output Output to various levels of labour employment with capital held constant Output to the cost of labour S P1 P2 Price P3 D Quantity Q.4 (A) (B) (C) At a price equals P1, There is upward pressure on price. Demand will rise to restore equilibrium The market has reached an equilibrium price Quantity supplied is greater than quantity demanded A shortage exists

(A) (B) (C) (D) (E)

Q.2

(A) (B) (C) (D) (E)

Q.3

(A) (B) (C) (D) (E)

Question 4 and 5 refer to the following diagram:

(D)
(E)

Sample Test Paper

Economist 2012-13 (Morning)

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Q.5 (A) (B) (C) (D) (E)

When price equals P3, There is a tendency of price to rise There is excess supply. Quantity exchanged equals quantity demanded The market is in equilibrium A surplus exists

SECTION II MACROECONOMICS Total Marks: ( 25 )

Q.1 (A) (B) (C) (D) Q.2 Given the Keynesian consumption function C = 0.46 + 0.92yd, if income rises by Rs. 1 billion, how much will consumption increase? Rs 460 million Rs 920 million Rs 500 million Rs 1,380 million Other things remaining constant, an increase in the level of output in an economy is likely to result in An increase in money supply An increase in rate of interest A decrease in money demand A decrease in the rate of interest According to the permanent income theory, temporary increase in income will mostly be ________, and permanent increase in income will mostly be _______ Spent: Saved Spent: Spent Saved: Spent Saved: Saved To ensure that the fundamental identity of national income accounting holds, changes in inventories are: Treated as part of saving Ignored Treated as part of expenditures Counted as consumption
AD3 AS AD1

(A) (B) (C) (D)

Q.3

(A) (B) (C) (D)

Q.4

(A) (B) (C) (D)

Q.5

Price Level AD0 0 AD2 Real GDP

Sample Test Paper

Economist 2012-13 (Morning)

Page 3 of 5

Refer to the above diagram. If the economys present aggregate demand curve is AD2:

(A)
taxes. (B) of taxes. (C) (D)

The most appropriate fiscal policy is to increase government expenditures or a reduction of The most appropriate fiscal policy is a reduction of government expenditures or an increase Government should not undertake either an expansionary or a contractionary fiscal policy. The economy is achieving its full capacity output.

SECTION III QUANTITAVE

Total Marks: (20) Q.1 If n and p are both odd numbers, which of the following numbers must be even numbers? n+p np+2 2n+p (B) (D) np n+p+1

(A)
(C) (E) Q.2

2 2 if x + y = 3 x, then

dy = dx
(B)

(A)

3 2x 2y 2y 3 2x

2x 3 2y 3 2y 2x

(C) Q.3 Log (A) (C) Q.4

(D)

x 10 =, then x =
1/2 10 (B) (D) 4 2

ABC is a right angled triangle, if the length of three sides of ABC are 3 cm, 4cm and 5cm, then the area of ABC is (A) (C) Cannot determine 10 cm2 (B) (D) 6 cm2 7.5 cm2

Q.5

A bag of chicken food will feed 18 chickens for 54 days. How long will it feed 12 chickens. (A) (C) (E) 36 53 81 (B) (D) 47 72

Sample Test Paper

Economist 2012-13 (Morning)

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Q.6

The median of the data : 25, 12, 10, 22, 17, 11, 18 is: 22 17 115 (B) (D) 16.43 25

(A)
(C) (E) Q.7

The number of possible samples of size 2 can be drawn without replacement from a population of 4 units consisting of the values 5, 3, 7, 6 will be: (C) (E) 24 08 06 (B) (D) 16 04

(A)

SECTION - IV PAKISTANS ECONOMY

TOTAL Marks (10) Q.1 National savings as percent of GDP of Pakistan is around: (A) 18% (D) 12% Q.2 (B) 15% (E) 8% (C) 11%

The major share in total exports of Pakistan consists of: (A) Carpet and Rugs (C) Textile and Textile Articles (D) Rice (B) Surgical Goods (D) Leather Goods

Q.3 (A) (B) (C) (D) (E) Q.4

The two major sources of federal tax revenues in Pakistan are : Custom Duties and Income Tax Sales Tax and Income Tax Excise Duties and Sales Tax Excise Duties and Custom Duties Sales Tax and Capital Value Tax The recorded growth in real Gross Domestic Product in fiscal year 2003 was (A) 4.5% (D) 5.8% (B) 4.1% (E) 3.9% (C) 5.1%

Q.5

The total volume of exports of Pakistan in the fiscal year 2003 was close to: (A) $11 billions (D) $ 8 billions (B) $11 trillion (E) $ 15 billions (C) $ 20 billions

Sample Test Paper

Economist 2012-13 (Morning)

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