Journalism (Mass Communication) Solved MCQs Paper 2015-16

(1) A large size head1ine across the entire page is called:

(a) Deck
(b) Banner
(c) Lead
(2) A sheet containing facts and detailed information on any issue is known as:

(a) Summary
(b) Write up
(c) Backgrounder
(3) The key Narrator of a newscast or program is called:

(a) Announcer
(b) Editor
(c) Anchor

(4) Mohammedan Social Reformer was the English Name of:

(a) Muhazzab
(b) Makhzari
(c) Tahzeeb ul Akhlaq

(5) Daily Dawn Started in:

(a) 1940
(b) 1942
(c) 1944
(6) Zamindar was launched by:-

(a) Maulana Zafar Ali Khan

(b) Maulvi Serajuddin
(c) Munshi Mahboob Alam.
(7) The first Editor of Dawn was:

(a) Desmond Young

(b) Altaf Hussain
(c)Pothan Joseph
(8) The number of radio stations, which Pakistan got in 1947 were:

(a) 5
(b) 2
(c) 3 (1- Lahore 2- Peshawar 3- Dahaka)
(9). Daily Jung first appeared from:

(a) Calcutta
(b) Karachi
(c) Delhi

(10) Hamid Nizami was the founder editor of:

(a) Inqilab
(b) Nawa-e-waqt
(c) Mashriq
(11) CPNE is the representative body of:

(a) Editors
(b) Newspaper owners
(c)Woking journalists
(12) Television made its advent in Pakistan in:
(a) 1958
(b) 1964
(c) 1970
(13) Leader is the name of:

(a) Leading story on the front page.

(b) Main Feature
(c) Opening Editorial
(14) Continuation of a story on another page is called:

(a) Carried
(b) Jump
(c) Bouncer
(15) S.M.C.R. is a well known:

(a) Communication Theory

(b) Communication Strategy
(c) Communication Model
(16) A story appearing with the name of the writer is called:

(a) Credit line

(b) By line
(c) Print line
(17) The largest mass medium in Pakistan is:

(a) The Press

(b) Radio
(c) Television
(18) Dr. Goebbles is known as father of:

(a) Advertising
(b) Public Relation
(c) Propaganda
(19) Radio Pakistan was converted to Pakistan Broadcasting Corporation in:
(a) 1964
(b) 1972
(c) 1976

(20) A.P.P. is the abbreviation of:

(a) Allied papers of Pakistan
(b) Association of Publications
(c) Associated Press of Pakistan.
1) What is meant by editorial note:
a)Small editorial
b) Editor’s notes
c)Additional editorial
d) None of these
2) The news which appears in the papers two or three days before an important
event is called:

1. a) Curtain Raiser
b) Background
c) Follow up
d) None of these
3) Who is the most important person in the T.V. NEWS:

1. a) NEWS caster
b) Camera-man
c) PEON
d) None of these
4) Hasrat Mohani published the newspaper:

1. a) The Comrade
b) Al-Hilal
c) Urdu-I-Muallah
d) None of these
5) The Nawa-e-Waqt started its publication in:
 1. a) 1940
b) 1945
c) 1947
d) None of these
6) Irshad Ahmed Haqani writes his column under in:

1. a) Harf-e-Haq
b) Harf-e-Akhir
c) Harf-e-Tamannah
d) None of these
7) Who was the first editor of the daily Jang?

1. a) Mir Javed-ur-Rehman
b) Mir Shakeel-I-Rehman
c) Mir Khalil-ur-Rehman
d) None of these
8) Which of the private Pakistani T.V. Channel has the greatest number of
viewers?

1. a) P.T.V.
b) S.T.N.
c) GEO
d) None of these
9) Which official is called the pilot of the newspaper:

1. a) The editor
b) The news editor
c) The reporter
d) None of these
10) Communication is a

1. a) Theory
b) Strategy
c) Process
d) None of these
11) The head office of “The Khabrain” is in:

1. a) Karachi
b) Islamabad
c) Lahore
d) None of these
12) APNS represents
1. a) Editors
b) Reporters
c) News paper owners
d) None of these
13) P.T.V. started its transmission in the regime of:

1. a) Ayub Khan
b) Yahya Khan
c) Butto
d) None of these
14) Which is the largest circulated newspaper of Pakistan?

1. a) The dawn
b) The Jang
c) The Nawa-e-Waqt
d) None of these
15) The Nation is the sister publication of:

1. a) The dawn
b) The Jang
c) The Nawa-e-Waqt
d) None of these
16) AFP is the news agency of

1. a) England
b) America
c) France
d) Noneof these
17) Who was the founder of the Dawn?

1. a) Haroon brothers
b) Quaid-e-Azam
c) Altaf Hussain
d) None of these
18) Wax-Wyllie wrote

1. a) Exploring Journalism
b) Mass Communication
c) Radio and T.V. Writing
d) None of these
19) Who was the founder of yellow journalism:

1. a) William Hurst
b) William John
c) William Hickey
d) None of these
20) The Urdu edition of the Comrade was called:

1. a) Humdard
b) Jam-e-Jahan-Numa
c) Akhbar-e-Jahan
d) None of these
Sociology Solved MCQs Paper 2015-16
(1) Etnocentricism means:

(a) Evaluating other cultures with the Yardstick of your own values.
(b)Taking other nations as good as your own one but disowned
(c)No other society is like your’s and your society or group is superior to
others.
(d) None of these.
(2) Social facts have thier independent existence and must be studied
likewise. Who remarked above when discussing scientific method:
(a)Ibn-i-Khaldun (b)Emile Durkhiem
(c)Auguste Comte (d) None of These
(3) An exploratory research design the major focus is on:

(a) Experimentation (b) Hypothesetesting

(c) Profile development and description (d) None of these
(4) Diffusion of innovations among cultures means:

(a) Traveling of traits and patterns in space/territory

(b) Transmission of trait complexes in time.
(c) Both(a) and (b)
(d) None of these
(5) Social institutions are ;

(a) God-given and cannot be changed

(b) Buildings and people who operate there
(c) Consultellation of folkways and moresaround some important functions(s)
of society.
(d) None of these.
(6)A counter culture:
(a) Has to be against the existing cultural ethos/values
(b) May not be against the existing cultural ethos/values
(c) If different from the existing culture may never succeed to survive
(d) None of these.
(7) Family Laws Ordinance was passed for the first time in:

(a) 1961 (b) 1973

(c) 1985 (d) None of these.
(8) Demographic Transition exhibits:

(a) High birth rate and low death rate in its first phase
(b) high death rate and low birth rate in its first phase.
(c) High birth rate and high death rate in its first phase.
(d) None of these.
(9) As a conquence of rural urban migration:
(a) more and more urbanization is takling place successfully
(b) ruralization of urban areas is takling place
(c) ruralization of urban areas and ribbon growth seem to be the result
(d) None of these
(10) In a patriarchal family the major decision are taken by the:

(a)Old men and women

(b)The male or female head of the family
(c)The male head of the family who weilds all powers
(d)None of these.
(11) Sociobiologists believe that:

(a) biology being the major constraints does not allow any change in human
nature hence socialization does not change much of human individual
nature.(b) Individaul is the product of social group within which he is socialized
(c)The-nature controversy has ended in favour of nurture and the
bio-sociologists have failed to promote thier thesis.
(d) None of these
(12)A double-barrelle question has the potential of having:

(a) Two acceptable responses/answers

(b)Two answers but incompatible with each other
(c) Both (a) and (b) 
(d) None of these .
(13) Those who cannot compete have no right for higher learning and must be
refused accordingly who believed in the above thesis?
(a) Auguste comte (b)Spencer
(c) Karl max (d) None of these
(14) Whose theorizing social change is depicted/comes closer to Iqbal’s verse
:
“AA tujh ko bataon main taqdeer umam kia hai
shamsher w sanna awwal taoos w rabab aakhir”
(a) Karl- Marx
(b) Ibn-i-Khaldun
(c)George Hegel
(d) None of these.
(15) The lowest density of population per square kilometer is found in:

(a) Sindh (b) N.W.F.P

(c)Baluchistan (d) None of these
(16) Alteration is the state of affairs in which:

(a) the society has no norms and if there are any nobody follows the
(b) the individual has no claim over the product that he has finished
(c) the worker is least emotionally related to the product that he develops, the co-
workers and the work emviorment.
(17) The rate of return for a mailed questionaire is usually:

(a) very high (b) very low

(c) it can be both (a) and(b) (d) None of these
(18) According to Emile Durkhiem the Mechanical Solidarity is based on:

(a) blood relations and neighbourhood

(b) division of labour and specialization
(c) The contribution individuals make to each other
(d) None of these
(19) Cultural Shock is caused by:

(a) Playing is different role and getting role strain

(b) finding values, norms and customs against ones cultural socialization
usually opposite to what one has been socilizad in and they turn out to
be dysfunctional.
(c) Both (a) and (b)
(d) None of these
(20) Standard deviation in statistics is the measure that indicates in essence the :

(a) Central tendency

(b) Spread of the sample means/values
(c) Both (a) and (b)
(d) None of these
Who said “Man is a social animal”?

Aristotle.
Who called sociology “Social Physics”?

a)Auguste Comte
b)Wilfred
c)Herbert Spencer
3)Bourgeois type of society was introduced by?

Karl Marx
4)When cultural traits spread from one society to another,the process is called?

Diffusion
5)An ascribed status is one that is;

endowed at birth
6)Ethnocentrism means

superiority of ones own culture

7)A system in which one husband is married to many women is called;

polygyny
8)Levirate means;

a)Marriage of a man with the widow of his deceased brother

b)Marriage of a man with the sister of his deceased wife
c)None of these.
9)Joint family may be preferred because it has;

a)greater financial security

b)Division of labour
c)workable as a cooperative
d)all of these
10)Which of the following is not a major feature of capitalism?
Equitable distribution of income
11)Movement from rural to urban area is called;

Urbanization
12)Religion is a unified system of beliefs and practices relative to sacred
things.This definition has been given by;

Durkheim
13)Rapid growth of urbanization is due to advancement in;

a)modernization
b)westernization
c)technology
d)transport
14)Whose statement is this”where there is life there is society”

a)August Comte
b)Herbert Spencer
c)Durkheim
d)Maclver & Page

15)Who developed the “organic theory of society”

a)Herbert Spencer
b)Henry Maine
c)Thomas Hobbes
d)Maclver
16)What does culture usually reflect in Modern society?

a)Group culture
b)National culture
c)Geographical culture
d)religious culture
17)Customs are powerful in regulating the conduct of people in:
a)Simple societies
b)Urban societies
c)Industralized societies
d)All of these
18)Which one of these is not an essential element of community

Individual interest
19)Norms in society indicate;

Standarized generalization about normal expected mode of behaviour

20)Which one of the following is not a healthy social process?

a)Competition
b)Co-operation
c)Integration
d)None of these.
Forestry Solved MCQs Paper 2015-16
(1) National animal is designated by the technical name of:
(a) Capra falconeri
(b) Antelop carvicapra
(c) Panther tigris
(d) None of these

(2) Gum Arabic is obtained from:

(a) Acacia modesta
(b) Acacia catechu
(c) Acacia nilotica
(d) None of these

(3) World Wide Fund for Nature-Pakistan is located in:

(a) Peshawar
(b) Karachi
(c) Lahore
(d) None of these
(4) In 1973, Pakistan signed the following Convention dealing with threatened
species of wild flora and fauna:
(a) CMS
(b) CCC
(c) CITES
(d) None of these

(5) One of the most important minor forest produce is “Lac” which is obtained
from the secretion of:
(a) Trees
(b) Animals
(c) Insects
(d) None of these

(6) International Union for Conservation of Nature and Natural Resources-

Pakistan is located in:
(a) Islamabad
(b) Lahore
(c) Karachi
(d) None of these

(7) Pakistan Environmental Protection Act was promulgated in:

(a) 1990
(b) 1995
(c) 1997
(d) None of these

(8) Periodic Annual Increment of Trees is the average increment of:

(a) 3 years
(b) 5 years
(c) 8 years
(d) None of these

(9) Von Mantel formula is designated by:

(a) Ya=V/P
(b) Ya= V=½/P
(c) Ya=Va/R
(d) None of these

(10) Machiara National Park is located in:

(a) NWFP
(b) AJK
(c) Balochistan
(d) None of these

(11) One of the major parts on Dalbergia sissoo is:

(a) Euproctis lunata
(b) Tonica niviferana
(c) Plecoptera reflexa
(d) None of these

(12) Seedling is a stage of tree development when it reaches a height of:

(a) One feet
(b) Two feet
(c) Three feet
(d) None of these

(13) Distribution of Acacia nilotica in southern parts of Pakistan is restricted

mainly due to:
(a) Low rainfall
(b) High temperature
(c) Frost
(d) None of these

(14) Upward Movement in organic compounds in plants occur through:

(a) Phloem
(b) Cortex
(c) Xylem
(d) None of these
(15) In irrigated plantations, the area between a cross road and a khal is termed
as:
(a) Compartment road
(b) Compartment area
(c) Center
(d) None of these

(16) Commercial “Resin” is obtained from:

(a) Pinus wallichiana
(b) Pinus radiata
(c) Pinus roxburghii
(d) None of these

(17) Pole is a stage of tree development characterized by rate of increase in

height:
(a) Begins to fall
(b) Begins to rise
(c) Remains static
(d) None of these

(18) In many trees of temperate climate, Mycorrhiza is present in:

(a) Cones
(b) Needles
(c) Roots
(d) None of these

(19) Volume of an irregular wood can be measured by:

(a) Pedometer
(b) Xylometer
(c) Odometer
(d) None of these

(20) Subtropical broadleaved hill forests are characterized by species:

(a) Populus ciliate and Aesculus
(b) Proopis cineraria and Dalbergia sissoo
(c) Acacia modesta and Olea feruginea
(d) None of these

Agriculture Solved MCQs Paper 2015-16

(1) Olericulture is the study dealing with:
(a) Vegetable production
(b) Honey bee
(c) Ornamental Flowers
(d) None of these
(2) Colostrum is:
(a) Low nutritive milk
(b) First product of mammary glands after parturition
(c) Product of mammary glands after two month of parturition
(d) None of these
(3) Banana fruit is classified in the category:
(a) Drupe
(b) Pomes
(c) Berry
(d) None of these
(4) Older the rice:
(a) Worse in price
(b) Damaged in shape
(c) Cheaper in price
(d) None of these (Please confirm it)
(5) Gossypium Hirsutum is the botanical name of:
(a) American Cotton
(b) Desi Cotton
(c) Barley
(d) Sugar Cane
(e) None of these
(6) Selection of plants on the basis of phenotypic superiority is known as:
(a) Hybrid
(b) Mass Selection
(c) Inbred Line
(d) Pure Line
(e) None of these
(7) Agricultural Extension relates to:
(a) Modernization of agricultural machinery
(b) Financial help to the farmers
(c) Educating farmers
(d) None of these
(8) When soil surface is protected with residue of a crop, the practice is called:
(a) Nitrogen fixation
(b) Sheet erosion
(c) Tillage
(d) Mulching
(e) None of these
(9) Bhagnari is a breed of:
(a) Buffalo
(b) Cow
(c) Sheep
(d) Poultry
(e) None of these
(10) Afforestation means:
(a) Forest Research Station
(b) To convert land into forest
(c) Utilization of forest products
(d) None of these
(11) Population genetics is based on:
(a) Principles of population control
(b) Mendel’s Law
(c) Hardy Wienberg’s law
(d) Genotype-environment inter action
(e) None of these
(12) Inqalab – 91 is a variety of:
(a) Rice
(b) Cotton
(c) Sugar cane
(d) Wheat
(e) None of these
(13) Crops produced in hilly areas are low in:
(a) Iron
(b) Zinc
(c) Nitrogen
(d) Iodine
(e) None of these
(14) Crossing over occurs between:
(a) Sister Chromatids
(b) Homologous Chromosomes
(c) Non-Homologous Chromosomes
(d) None of these
(15) Gypsum is rich source of:
(a) Calcium + Zinc
(b) Potassium + Nitrogen
(c) Calcium + Sulphur
(d) None of these
(16) F.A.O. has its headquarters in:
(a) London
(b) New York
(c) Geneva
(d) None of these
(17) Organic matter in soil helps in:
(a) Improving soil structure
(b) Improving soil texture
(c) Weed control
(d) Building up of organic compounds in crops
(e) None of these
(18) Seed cotton means
(a) Seed without lint
(b) Seed with lint
(c) Lint only
(d) None of these
(19) The ploidy level of American Cotton is:
(a) Diploid
(b) Triploid
(c) Tetraploid
(d) None of these
(20) Contribution of Agriculture to GDP is:
(a) 35%
(b) 50%
(c) 75%
(d) None of these
English Literature Solved MCQs Paper 2015-16
(1) The subjugation of Women (1869) is an important text of:

(a) George Eliot

(b) Byron
(c) John Mill
(d) Hardy

(c) John Mill
(2) Which of the following poems by Tennyson is a monodrama?

(a) Ulysses
(b) Break, Break, Break
(c) Maud
(d) Crossing the Bar

(c) Maud
(3) The line “she dwells with Beauty – Beauty that must be” occurs in Keats’

(a) Lamia
(b) Ode to a Grecian Urn
(c) Ode on Melancholy
(d) Endymion

(c) Ode on Melancholy

(4) Negative Capability to Keats, means

(a) The ability to sympathize with other

(b) Say bad thing, about others
(c) To empathize

(c) To empathize
(5) “Art for arts sake” found its true adherent in:

(a) Wordsworth
(b) Byron
(c) Browning
(d) Wilde

(d) Wilde
(6) It as the best of times, it was the worst of time, it was the worst – the opening
of Dickens’

(a) Hard Times

(b) David Copperfield
(c) Oliver Twist
(d) A Tales of Two Cities

(d) A Tales of Two Cities

(7) The character of Little Neil is a creation of:
(a) Hardy
(b) Eliot
(c) Oscar Wilde
(d) Dickens

(d) Dickens
(8) “Idylls of the King” is illustration of Tennyson’s deep interest in:

(a) Medieval legends

(b) The role of the king
(c) Hero worship
(d) The contemporary condition

(b) The role of the king

(9) Who believed that poetry is the spontaneous overflow of emotions?
(a) Blake
(b) Byron
(c) Wordsworth
(d) Keats

(c) Wordsworth
(10) Who after the publication of a poem, awoke and found himself famous?

(a) Shelley
(b) Browning
(c) Wordsworth
(d) Keats

(c) Wordsworth
(11) The image of the femme fatale dominates the poetry of:

(a) Wordsworth
(b) Keats
(c) Byron
(d) Tennyson
(b) Keats
(12) Little Time is a character in Hardy’s

(a) The return of the native

(b) Jude the Obscure
(c) Mayor of Casterbridge

(b) Jude the Obscure

(13) Which is the famous elegy written by Shelley?

(a) In Memoriam
(b) Lycidas
(c) Adonis
(d) Thyrsis

(c) Adonis
(14) The moral choice is everything in the works of:

(a) Dickens
(b) George Eliot
(c) Hardy

(a) Dickens
(15) Which of the following is illustrative of Ruskin’s interest in social economy?

(a) The Seven Lamps

(b) Unto this Last
(c) The Stones of Venice

(b) Unto this Last

(16) Which one of the following poets named the Romantic poet as the “pond
poets”?

(a) Southey
(b) Shelley
(c) Keats
(d) Byron
(a) Southey
(17) The Charge of the Light Brigade” (Tennyson) commemorates:

(a) The Boer War

(b) The battle of Trafalgar
(c) The Crimean War

(c) The Crimean War

(18) The Elgin Marbles inspired Keats to write:

(a) Endymion
(b) Lamia
(c) The Grecian Urn
(d) Melancholy

(c) The Grecian Urn

(19) Would you tell Sordelo (Browning) as a:

(a) Dramatic Monologue

(b) Dramatic Lyrics
(c) Tragic Drama

(b) Dramatic Lyrics

(20) Which one of the following poets was appointed Poet Laureate in the year
1813?

(a) Tennyson
(b) Byron
(c) Southey
(d) Wordsworth

(c) Southey
Public Administration Solved MCQs Paper 2015-16
(I) Public Administration may be defined as:
(A) Management of industry
(B) Administration of Public
(C) Management of Property
(D) Administrative Capacity
(E) None of these
(2) The concept of “bounded rationality” was given by:
(A) Wax Weber
(B) F. W. Riggs
(C) Herbert Simon
(D) Abraham Maslow
(E) None of these
(3) Bureaucracy is based on:
(A) Traditional Authority
(B) Personal Authority
(C) Charismatic Authority
(D) Corporate Authority
(E) None of these
(4) Behaviorism is associated with:
(A) Rationalism.
(B) Communication.
(C) Socialism.
(D) Humanism
(E) None of these
(5) The author of “The Function of the Executive” is:
(A) F. W. Taylor
(B) Chester Bernard
(C) Mary Parker Follet
(D) Henry Fayol
(E) None of these
(6) Which of the following is not of the core values of public administration?
(A) Equity
(B) Efficiency
(C) Effectiveness
(D) Bureaucracy
(E) None of these
(7) Which of the following is one of the features of bureaucracy conceived by
Max Weber?
(A) Authority
(B) Hierarchy
(C) Publicness
(D) Civil society
(E) None of these.
(8) Which of the following is an essential component of a formal organization?
(A) Decentralization
(B) Formal Structure
(C) Power
(D) Centralization
(E) None of these

(9) Bureaucracy is a form of:

(A) Political Organization.
(B) Social Organization
(C) Community Organization
(D) Private organization
(E) None of these
(10) McGregor’s name is most commonly associated with one of the following:
(A) Bureaucratic Theory
(B) Scientific Management
C) Theory X and theory Y
(D) Human Relations
(E) None of these
(11) Legal-rational authority” is a core concept of:
(A) Public Choice Theory
(B) Theory of Emergency
(C) Maslow’s Theory of Motivation
(D) Theory of Bureaucracy
(E) None of these
(12}One of the four functional imperative of a system identified by the Talcott
Parsons is:
(A) Efficiency
(B) Effectiveness
(C) Adaptation
(D) Entropy
(E) None of these

(13) “Entropy” is a law of nature in which all forms of organizations move

towards:
(A) Growth and Continuity
(D) Continuous Improvement
(C) Rebirth and Emergency
(D) Disorganization and Death
(E) None of these
(14) One choice theory is economic explanation of:
(A) Religion
(B) Islam.
(C) Political decision making
(D) Psychology.
(E) None of these.
(15) System. Theory is associated with the work of following:
(A) Leonard While
(B) Mary Parker Follet
(C) Talcott Parsons
(D) F.W. Taylor
(E) None of these
(16) Which one of the following is the foundation of modern Human Resource
(A) Specialization
(B) Compensation
(C) Job Analysis
(D) Job Evaluation
(E) None of these
(17) The process of transmitting the idea or thought into meaningful symbols is
called:
(A) Decoding
(B) Feedback
(C) Reception
(D) Encoding
(E) None of these
(18) Which of the following will not be considered as a formal organization?
(A) A Hospital
(B) A University
(C) A Group of Friends
(D) A Service Industry
(E) None of these
(19) Which of the following violates the principle of Utility of Command?
(A) Bureaucratic Organization
(B) Functional Organization
(C) Manufacturing Organization
(D) Product Organization
(E) None of these.
(20) Which of the following is not a feature of good governance?
(A) Accountability
(B) Transparency
(C) Nepotism
(D) Rule of law
(E) None or these.
Economics Solved MCQs Paper 2015-16
1. Assume that there are only two goods: A and B
In the base year, Quantity Price
A 10 $1
B 10 $4
In the current year, Quantity Price
A 20 $ 5
B 25 $20
 The Consumer Price Index (CPI) for the current year is:
a. 50
b. 100
c. 200
d. 500
e. 600
2. Which of the following groups is most hurt by unexpected inflation?
a. workers with cost of living adjustments in their labor contracts
b. homeowners
c. people with large debts to pay for their homes and cars
d. people with large retirement savings held in savings accounts
3. If the nominal interest rate is 5% and the inflation rate is 2%, the real interest rate
is:
a. 2%
b. 3%
c. 5%
d. 7%
e. 2 ½%
4. For which of the following reasons might inflation cause Real GDP to grow
slower than it otherwise would?
a. Inflation makes everyone poorer
b. Inflation reduces the value of consumer debt
c. Inflation increases business investment spending
d. Inflation decreases savings in financial form
5. Disposable Income is equal to:
a. National Income c. National Income Minus Taxes
b. Real GDP
c. National Income Minus Taxes
d. National Income Minus Taxes Plus Transfers
6. Assume that Potential Real GDP equals $10,000. National Income is therefore
$10,000. Of this, consumers will pay $2,000 in taxes, save $1,000, and spend
$7,000 on consumer goods. Business Investment spending is $2000. In order to
avoid recessions and inflation (to have equilibrium), the government should have
 a:
a. balanced budget
b. budget deficit of $1000
c. budget surplus of $1000
d. budget deficit of $2000
7. According to Keynes, when the Great Depression started, the government should
have:
a. done nothing
b. decreased the money supply
c. had a large increase in government spending
d. enacted high tariffs, such as the Smoot-Hawley Tariff
8. If the government lowers taxes by $10 billion, the Real GDP will rise by
a. more than $10 billion
b. less than $10 billion
c. exactly $10 billion
9. Which of the following is an automatic stabilizer?
a. unemployment benefits
b. spending on education
c. defense spending
d. net interest
10. “Crowding out” means that
a. a government budget deficit lowers interest rates and causes investment
spending to rise
b. an increase in marginal tax rates lowers production
c. a government budget deficit raises interest rates and causes investment spending
to fall
d. a government budget deficit raises American exports and lowers American
imports
Answers: D D B D D C C A A C
11. Which of the following IS a function of money?
a. medium of exchange
b. store of value
 c. unit of accounting
d. all of the above
12. Which of the following is a component of M-1?
a. savings deposits
b. credit card
c. checkable deposits
d. gold
13. Which of the following is a NOT component of M-2?
a. small time deposits
b. money market mutual funds
c. stocks
d. checkable deposits
14. Which of the following is true about the Federal Reserve System (Fed)?
a. it is a system of 12 central banks
b. its Board of Governors is elected by a vote of the people
c. its main policy-making body is the FDIC
d. it accepts deposits from the public and makes loans to businesses
e. all of the above
15. An IOU of the Federal Reserve Bank of San Francisco to Bank of America is
called:
a. discounts
b. federal funds
c. reserves
d. collateral
16. Which of the following is the most liquid?
a. a savings account
b. a 6 month CD
c. a home
d. water
17. The monetary base is composed of:
a. gold and silver
b. currency only
 c. currency and reserves
d. currency and checkable deposits
18. If the monetary base is increased by $1,000 and the reserve requirement is 10%
(1/10), by how much will the money supply be increased?
a. $100
b. $1,000
c. $5,000
d. $10,000
19. If the Federal Reserve wishes to increase the money supply, it should:
a. raise the reserve requirement
b. raise the discount rate
c. buy Treasury securities in the open market
d. all of the above
20. An increase in the money supply will cause interest rates to
a. rise
b. fall
c. remain unchanged
Answers: D C C A C A C D C B