451. What kind of relationship exists between the demand for a good and the price of its substitute goods?
A: Direct
B: Inverse
C: No effect
D: Can be direct or inverse
452. What does “ceteris paribus” mean?
A: Other things are simultaneously changing
B: Other things remaining constant
C: The price of other goods remaining constant
D: All are correct
453. Who gave the “ceteris paribus” assumption?
A: Marshall
B: Ricardo
C: Walras
D: Adam Smith
454. The LM curve will be steeper if the value of K is:
A: Lower
B: Greater
C: Zero
D: Very low
455. In the IS-LM framework, when private investment increases, the rate of interest will increase along with:
A: Increases in the level of income
B: Decreases in the level of income
C: No change in the level of income
D: None of these
456. The World Investment Report ”WIR” is published by which of the following bodies?
A: IMF
B: OECD
C: International Development Agency IDA
D: United Nations Conference on Trade and Development (UNCTAD)
457. Tax GDP ratio in Pakistan is:
A: Very high
B: Normal
C: Very low
D: None of these
458. The major causes of the increase in debt burden and debt servicing are:
A: Increase in foreign loans and their interest charges
B: Decreases in foreign loans and their interest charges
C: Both of them
D: None of them
459. Foreign assistance for unproductive fields will promote:
A: Unemployment
B: Inflation
C: Employment
D: Prosperity
460. The fame theory takes into consideration:
A: Reaction of rival firms
B: Reaction of people
C: No reaction of rival firms
D: None of these
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