Question # 1

If tastes are identical between countries than comparative advantage is determined by

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Supply conditions only

Demand conditions only

Supply and demand conditions

Can't tell without more information.

The two main characteristics of the production function are.

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It slopes downward from left to right and the slope become flatter as teh input increases

It slopes upward from left to the right the slope becomes steeper as the input increase

It slopes upward from left to right unput increases

It slopes downward from left to right and the slope becomes steeper ath the input increase

Lower interest rates are likely to.

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Decrease consumption

Increase cost of borrowing

Encourage saving

Increase spending

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

The matrix A multiplies by its inverse will b e a.

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Identity matrix

Skew symmetric matrix

Idempotent matrix

Adjoin of a matrix

"Transactions" money is money used as a

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Store of value

Unit of account

Medium of exchange

Standard of deferred payment

a contractionary monetary policy

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Reduces interest rtes

Reduces real output

shifts the LM curve to the right

All of the above

Which of the following is not a global organization?

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IMF

World bank

Competition commission

WTO

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

An increases in the demand curve for orange juice would be illustrated as a.

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Leftward shift of the demand curve

Right ward shift of the demand curve

Movement up along the demand curve

Movement down along the demand curve

Any combination of products inside the production possibility frontier is

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Allocatively inefficient

X inefficient

Consumer inefficient

Productively inefficient

The relation ship between the exchange rate and the prices of tradable goods is known as the.

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Purchasing power parity theory

Asset markets theory

Monetary theory

Balance of payments theory

If labour productivity per week is 200 units and there are 5 employees what is the total output.

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40 units

195 units

1000 units

200 units

Which of the following best describes the selling of a production license to another firm.

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Hands over all rights to its products

Sells its products abroad

Sells the right to produce to another business

Sells the business to another business

Disposable income is obtained by subtracting ________ taxes from personal income

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Indirect taxes

Direct taxes

Subsidies

None

In the short run, the supply of farm commodities is.

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Inelastic

Less elastic

More elastic

Undetermined

The IMF is an agency charged with providing.

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Technical assistance to stock market and financial market problems.

Loans for post World War II reconstruction

Short term credit for international balance of payments deficits

Bonds denominated in U.S. dollars as a loan to LDCs

Industries that are extremely sensitive to the business cycle are the.

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Durable goods and service sectors

Nondurable goods and service sectors.

Capital goods and nondurable goods sectors.

Capital goods and durable goods sectors.

There are __________ basic economic activities.

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2

3

4

5

How much is contributed by agriculture sector to GDP of the country.

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18.5%

21.8%

26.5%

34.5%

Capitalism refers to

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the use of markets

Government ownership fo capital goods

Private ownership of capital goods

Private ownership of homes and cars

Union of A with B is same as union of B with A, that is AUB = BUA is termed as

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Associative law of union

Cumulative law of union

Reflective law

All the above

A demand switching policy could be.

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Higher interest rates

Higher income tax

Traiffs

Reduced government spending

According to principle of Islamic economics interest free banking was started in the fim of PLS account.

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Nawaz sharif

Zia ul haq

Z.A Bhutto

Ayub Khan

The product cycle theory of trade is essentially a

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Static short run trade theory

Dynamic, long run trade theory

Zero sum theory of trade

Negative sum theory of trade

For a competitive firm its short run supply curve is ________ and its long run supply curve is.

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SMC , LMC

SMC above SAVC, LMC above LAC

SMC below SAVC, LMC above LAC

SMC Below SAVC, LMC below LAC

Direct investment and security purchases are classified as.

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Capital account transactions

Current account transactions

Unilateral transfer transactions

Merchandise trade transactions

Research is an organized

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Enquiry

Survey

Investigation

Experiment

a x2 + bx + c = 0

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Linear equation

Quadratic equation

Polynomial of degree five

None of these

In monopolistic competition, firms desire to sell more output at equilibrium because.

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Price is greater than average cost

Price is greater than average variable cost

Price is greater than marginal cost

Price is equal to marginal revenue

The government budget surplus equals

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Government purchases plus transfers

Net government receipts minus government purchases

Government purchases minus net receipts

Government purchases minus transfers.

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