Question # 1

Industrial polices intended to foster comparative advantage for domestic industries could result in the implementation of.

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Research and development subsidies

Loan guarantees

Low interest rate loans

All of the above

Capital, as economists use the term.

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Is the money the firm spends to hire resources

Is money the firm raises from selling stock

Refers to the process by which resources are transformed into useful forms

Refers to things that have already been produced that are in turn used to produce other goods and services.

Parameter in inferential statistics refers to

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Sample value

Data

Population value

Variable name

The IS curve shows the combinations of output and the real interest rate for which.

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The goods market is in equilibrium

The labor market is in equilibrium.

The financial assets market is in equilibrium

An increase in output will cause the market clearing interest rate to be bid up.

The philippic curve is the relation between inflation and unemployment that hold for a given natural rate of unemployment. and a

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Given rate of inflation

Given expected rate on inflation

Given level of unemployment

Given expected level of unemployment

The most widely traded currency in the foreign exchange market is the.

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Euro

Chinses yuan

British pound

U.S. Dollar

The gain from international trade are closely related to.

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the labor theory of value

How much the autarky price differs from international terms of trade change.

The fact that a country must lose from trade

All of the above

Wellbeing of all individual living things is the primary concern of.

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Biocentrism

Eco centreman

anthropocentrism

None of these

The arrangement were goods imported from trading partners in the developing world are subject to lower tariff rates than good from other countries is referred to as.

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Normal trade relation status.

Most favored nation status

Generalized system of Preferences.

Offshore assembly provisions

In the Keynesian cross diagram, an expenditure causes the aggregate demand function to shift _________ and the equilibrium level of aggregate output to.

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up ; rise

up ; fall

down ; rise

down ; fall

Economics is the science of Wealth who gave this definition.

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J-x Mehta

Marshall

Adam Smith

Robbins

Suppose a new law imposes a tax on all trades of bonds and stock What is the likely effect on money demand.

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Money demand declines first then rises when inflation increases

Money demand rises

The overall effect is ambiguous

Money demand declines

In 1980 the government of Pakistan promulgated.

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the Modaraba Ordinance

the Musharaika Ordinance.

the Zakar ordinance

the Ushar ordinence

An increase in the quantity of money supplied shifts the money supply curve to the_______ and the equilibrium interest rate

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right ; falls

right ; rises

left ; falls

left ; rises

Land will be allocated between competing uses so that.

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Housing gets priority

Industry gets priority

Faming gets priority

The equilibrium rental rate equilibrium total demand with supply

A decline in taxes __ consumer expenditure and shifts the _ curve shifts to the.

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Raises ; LM; Right

Lowers; IS ; left

raises ; IS; right

Lower ; LM; left

As the interest sensitivity of investment spending increase.

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Monetary policy has a larger effect on output

Fiscal policy has a larger effect on output

The multiplier increases

All of the above

In a typical cartel agreement the cartel maximizes profit when it.

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Behaves like a monopoly

Behaves like a perfectly competitive firm

Behaves like a duopoly

Is flexible in enforcing production targets

Quantitative characteristics includes.

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Beauty

Emotion

Intelligence

Data

The real value can be derived from a nominal value by

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Adjusting changes over time

Adjusting for data collection errors

Adjusting for population changes

Adjusting for changes in prices

According to the crowding out effect, a there is a government deficit, the real interest rate will.__________ and investment will_________

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rise ; rise

fall ; rise

rise ; fall

fall ; fall

An indifference curve gives

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the actual combination of goods that consumer chooses

the minimum choice of the consumer

the highest level of satisfaction

None of these

Because a monopoly hires workers up to the point where their marginal revenue product equals the wage rate the monopoly will.

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Pay less than the going wage rate

Pay a wage equal to the value of the marginal product of labor

Pay less than the value of the marginal product of labor

Pay workers what they are worth to society

The trade model of the Swedish economists Hackscher and Ohlin maintains that.

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Absolute advantage determines the distribution of the gain from trade

Comparative advantage determines the distribution of the gains from trade.

The division of labor is limited by the size of the world market

A country exports goods for which its resource endowment are most suited.

The sign of the simple correlation coefficient is determined by

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The intercept of the least squares equation.

The slope of the least squares equation

The appropriate economic theory.

The researcher

A current account surplus implies that

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The country is a net lender to the rest of the world

The country is running a net capital account surplus

Foreign investment in domestic securities is at very low levels

All of the above

Dynamic gains from trad could result from

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The stimulus of additional investment spending as markets open

Economies of large scale production as markets open

Additional competition made possible by the opening of markets

All of the above

A tax 15 percent per imported item would be an example of a

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Ad valorem tariff

specific tariff

Effective tariff

Compound tariff

Economists tend to judge a model based upon

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the realty of its assumptions

The accuracy of its predications

Its simplicity

Its complexity

A firm A's break even quantity is.

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10 units

40 units

50 units

30 units

Within circular flow of income, an increase in domestic income iwll lend to increase.

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Exports

Taxes

Inventories

Imports

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