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Today Paper 20-08-2016

47 MCQs, 8 Theory

 

Why we trade? 3

Note on trade optimist argument. 5

Note on Dual Exchange Rates – 5

What is factor endowment trade theory – 5

Note on Global warming - 5

How agriculture based country improve their status. -5

Informal Sector - 3

Note on Production Function – 3

 

MCQs are:

Debtors’ cartel: A group of developing-country debtors who join together to bargain as

a group with creditors.

Debt-for-equity swap: A mechanism used by indebted developing countries to reduce

the real value of external debt by exchanging equity in domestic companies (stocks) or

fixed-interest obligations of the government (bonds) for private foreign debt at large

discounts.

Current account: The portion of a balance of payments that states the market value of

a country’s “visible” (e.g., commodity trade) and “invisible” (e.g., shipping services)

exports and imports.

Debt service: The sum of interest payments and repayments of principal on external

public and publicly guaranteed debt.

Hard currency: The currency of a major industrial country or currency area, such as the

U.S. dollar, the euro, or the Japanese yen, that is freely convertible into other currencies.

Inward-Looking Development Policies: Policies that stress economic self-reliance on

the part of developing countries including domestic development of technology, the

imposition of barriers to imports, and the discouragement of private foreign investment.

Product cycle: In international trade, the progressive replacement of more developed

countries by less developed countries in the production of manufactures of increasing

complexity.

ABSOLUTE ADVANTAGE THEORY  - In 1776, Adam Smith

Marginal cost: The addition to total cost incurred by the producer as a result of increasing output by one more unit.

Transferability —the owner of a resource may sell the resource when desired.

Sharecropper: A tenant farmer whose crop has to be shared with the landlord, as the basis for the rental contract.

Moneylender: A person who lends money at high rates of interest, for example to peasant farmers to meet their needs for seeds, fertilizers, and other inputs.

Labour Turn Over

CONGESTION COST: An action taken by one agent that decreases the incentives for other agents to take similar actions. Compare to the opposite effect of a complementarity.

O-RING PRODUCTION FUNCTION: "A production function with strong complementarities among inputs, based on the products of the input qualities"

COMPLEMENTARITY: An action taken by one firm, worker, or organization that increases the incentives for other agents to take similar actions.

 

 ******** Good Luck *********

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Today Paper 20-08-2016

47 MCQs, 8 Theory

 

Why we trade? 3

Note on trade optimist argument. 5

Note on Dual Exchange Rates – 5

What is factor endowment trade theory – 5

Note on Global warming - 5

How agriculture based country improve their status. -5

Informal Sector - 3

Note on Production Function – 3

 

MCQs are:

Debtors’ cartel: A group of developing-country debtors who join together to bargain as

a group with creditors.

Debt-for-equity swap: A mechanism used by indebted developing countries to reduce

the real value of external debt by exchanging equity in domestic companies (stocks) or

fixed-interest obligations of the government (bonds) for private foreign debt at large

discounts.

Current account: The portion of a balance of payments that states the market value of

a country’s “visible” (e.g., commodity trade) and “invisible” (e.g., shipping services)

exports and imports.

Debt service: The sum of interest payments and repayments of principal on external

public and publicly guaranteed debt.

Hard currency: The currency of a major industrial country or currency area, such as the

U.S. dollar, the euro, or the Japanese yen, that is freely convertible into other currencies.

Inward-Looking Development Policies: Policies that stress economic self-reliance on

the part of developing countries including domestic development of technology, the

imposition of barriers to imports, and the discouragement of private foreign investment.

Product cycle: In international trade, the progressive replacement of more developed

countries by less developed countries in the production of manufactures of increasing

complexity.

ABSOLUTE ADVANTAGE THEORY  - In 1776, Adam Smith

Marginal cost: The addition to total cost incurred by the producer as a result of increasing output by one more unit.

Transferability —the owner of a resource may sell the resource when desired.

Sharecropper: A tenant farmer whose crop has to be shared with the landlord, as the basis for the rental contract.

Moneylender: A person who lends money at high rates of interest, for example to peasant farmers to meet their needs for seeds, fertilizers, and other inputs.

Labour Turn Over

CONGESTION COST: An action taken by one agent that decreases the incentives for other agents to take similar actions. Compare to the opposite effect of a complementarity.

O-RING PRODUCTION FUNCTION: "A production function with strong complementarities among inputs, based on the products of the input qualities"

COMPLEMENTARITY: An action taken by one firm, worker, or organization that increases the incentives for other agents to take similar actions.

 

 ******** Good Luck *********



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