Question # 1

International trade during the 19th century was characterized by.

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Extensive barriers to trade

Operation of the gold standard

A small volume of international trade

None of these

The Hocksher Ohlin model rules out the classical model's basis for trade by assuming that. _______ is identical between countries.

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Factor endowments

Factor intensities

Technology

Opportunity costs

A change in the full employment quantity of labor_________ the short run aggregate supply curve and ______ the long run aggregate supply curve.

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shifts ; shifts

shifts ; does not shift

does not shift ; shift

does not shift ; does not shift

Depreciation is.

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A decrease in the stock of capital

Gross investment

Net investment

An increases in the stock of capital

Which of the following strategies have developing countries not used to deal with the problem of unstable expert markets.

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Multilateral contracts

Production and export controls

Buffer stock arrangements

Tariff rate quotes

Health of a country's economy is indicated by

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Number of doctors per 1,000 population

Per capital income

Literacy rate

None of the above

During the last eight years the per capita income in Pakistan has been

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Increasing substantially because of decline in population growth

Decreasing

increasing only marginally

Constant

The supply of foreign currency tends to be

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upward sloping

down ward sloping

Vertical

any of the above

The theory of ___________ suggests that government can assist domestic competitors.

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International dumping

Countervailing duties

Strategic trade policy

Export promotion policy

If a country an imposes an import tariff its welfare can improve if

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The country is a small country's than a larger country.

Its terms of trade improve enough

The tariff enhances the welfare of its trading partners

Its government's tax revenue increase because of the tariff

A demand curve shows the relation between the quantity demanded to a commodity over a given time and.

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the testes of consumer

The money income of cosumer

The price of related commodities

The price of the commodity

In a "Lorenz curve diagram absolute equality in income distribution would appear as.

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A curved line well bowed out from the diagonal

A curved line close to the diagonal

A right angled line

A diagonal line

Which trade theory contents that a country that initially develops and exports a new product may eventually become an importer of if ,a nd may no longer manufacture the product.

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Theory of factor endowments

Theory of overlapping demands

Economies of scale theory

Product life cycle theory.

A supply schedule shows the relations between the quantity supplied of a commodity over a given time and.

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Factor prices

Technology

Both a and b

The price of the commodity

If the coefficient of price elasticity is less than one

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It is normal good

It is inferior good

It is luxury good

All of these

the theory of overlapping demands predicts that trade in manufactured goods is unimportant by countries with very different .

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Tastes and preferences.

Expectations of future interest rate levels

Per capita income levels

Labor productivities.

Which of the following is likely ot be longer for monetary policy that for fiscal policy.

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The implementation lag

The recognition log

Both a and b

None of these

If an economy experience an increase in productivity it means that.

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the level of output has risen

Employees are working harder than before

Output per unit of input has risen

Technical change has taken place

Two commodities are considered to be perfect substitutes for each other if the elasticity of substitution is

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Positive

Negative

Infinite

None of these

Your checking account is

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An asset for you and a liability for your bank

A liability for you and an asset for your bank

An asset for both you and your bank

A liability for both you and your bank

In autarky equilibrium.

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Production equals consumption

Export equal inmprts

There is no trade

All of the above

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