Question # 1

The earliest statement of the principle of comparative advantage is associated with.

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Adam Smith

David Ricardo

Eli Heckshcer

Berti Ohlin

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

a nation with a current account deficit will be

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Lending more money to other nations

Experiencing a surplus in exports of goods and services.

Reducing its indebtedness to other nations

Going further into debt with other nations

The warfare effect of a quota depend to a considerable extent upon.

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Who has the quota license

The size of the quota

Elasticities of domestic demand and supply

All of the above

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

an more labor is added to a fixed amount of input the rate at which output goes up begins to decrease This is called.

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Diminishing marginal utility

Diminishing marginal productivity

Diminishing marginal costs

Diminishing marginal profit

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

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

The multiplier for a change in social security benefits is equl to the multiplier for a change in the same direction in salaries of Evanston police officers tiems.

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the marginal propensity to save

Minus the marginal propensity to save

The marginal propensity to consume

Minus the marginal propensity to consume

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

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International dumping

Countervailing duties

Strategic trade policy

Export promotion policy

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 funds used for further investment in joint stock company refers to.

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Distributed

Undistributed

Remaining

All of the above

Suppose that the supply curve of lin is highly inelastic if the demand curve of lin decreases and increases cyclically along the supply curve of lin then in this market the size of the quantity fluctuations will be _____ the size of the price fluctuations.

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Relatively greater than

Relatively less than

the same as

Any of the above

A straight line downward sloping demand curve implies that as price falls the elasticity of demand.

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Increases

Decreases

Remain the same

None of these

Ad valorem tariffs are collected as

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Fixed amounts of money per unit traded

A percentage of the price of the product

A percentage of the quantity of imports

All 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

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

In autarky equilibrium.

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Production equals consumption

Export equal inmprts

There is no trade

All of the above

The investment demand curve shifts right ward if

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The real interest rate falls

Savers increase their thriftiness

The expected profit rate increases.

The economy moves into a recession

A depreciation of the dollar will have its most pronounced impact on imports if the demand for. Imports is.

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Constant

Inelastic

Elastic

Unitary elastic

Skills that cna be transferred to other employers are called.

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General skills

Specific skills

Non pecuniary skills

All of the above

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