Credit marker deals with _____.

1. 1. Goods and services
   2. Savings and Investments
   3. Investments
   4. Savings

According to classical economists, the wages are flexible _____.

1. 1. Upward
   2. Downward
   3. Horizontal
   4. Both A and B

Everything else the same, the higher the interest rate the _____.

1. 1. Lower is the opportunity cost of holding coins and currency
   2. Greater amount of funds business will borrow for investment
   3. Greater is the incentive to save
   4. More money the Federal Government would like to borrow

Diamonds are more expensive than water because _____.

1. 1. Households are irrational
   2. They are more useful
   3. They yield higher marginal utility
   4. They yield higher total utility

If a consumer spends more on a product after a fall in supply, then demands is _____.

1. 1. Inelastic
   2. Volatile
   3. Unitary elastic
   4. Elastic

The factor of production of economics are _____.

1. 1. Four
   2. Six
   3. Three
   4. Two

If Pakistani citizen become less concerned with the future and save less at each real Interest rate:

1. 1. real Interest rates rise and Investment rises
   2. real Interest rates rise and Investment falls
   3. real Interest rates fall and Investment falls
   4. real Interest rates fall and Investment rises

the difference between right and wrong is merely a human _____.

1. 1. tradition
   2. Value
   3. Convention
   4. need

Planned spending is defined as all spending except _____.

1. 1. Unintended increase in Savings
   2. Unintended increase in Interest rate
   3. Unintended  increase in inventories
   4. Unintended increase in inflation

Monopolist cannot be in equilibrium at a level of output where elasticity of demand is _____.

1. 1. Equal to 1
   2. More than 1
   3. Less than 1
   4. Zero