In which capacity does a person stand to gain from deflation ?

Related Mcqs:

1. You are planning to run a hot dog stand during a forthcoming fair. You originally estimated that you will generated sales revenue of Rs 2000 and you have already spent Rs 1000 building the hot dog stand. The hot dog stand is nearly completed but now you estimate total sales to be only Rs 800 because the fair clashes with a major music festival in a nearby location. You can complete the hot dog stand for another Rs 300 Your decision rule should be to complete the hot dog stand as long as the cost to complete the stand is less than ?

   A. Rs 300
   B. Rs 1000
   C. Rs 500
   D. Rs 800

2. If in Pakistan real GDP/person in 2004 is Rs18,073 and real GDP/person is 2005 is Rs18,635 What is the growth rate of real output per person over this period ?

   A. 3.1 percent
   B. 3.0 percent
   C. 18.6 percent
   D. 18.0 percent

3. If a person who works in coal mine gets paid more than a person with a similar background and skills who works in a safer job, then ?

   A. coal miners must have greater human capital than others
   B. we have observed a compensating differential
   C. coal miners must be more attractive than other workers
   D. we have evidence of discrimination against workers outside the coal mine

4. In the ultimatum game, what split would be rational for both the person proposing the split and the person who must accept or reject the split ?

   A. There is no rational solution
   B. 75/25
   C. 99/1
   D. 1/99
   E. 50/50

5. A country can still gain from trading certain goods even though its trading partners can produce those goods more cheaply. How is known this principle ?

   A. Relative Advantage
   B. Complete Advantage
   C. Comparative Edge
   D. Comparative Advantage

6. A country can still gain from trading certain goods even though its trading partners can produce those goods more cheaply. How is known this principle?

   A. Relative Advantage
   B. Complete Advantage
   C. Comparative Edge
   D. Comparative Advantage

7. Mention an international trade policy competitive devaluation and increased protective barriers that one country institute to gain at the expense of its trading partners ?

   A. Nationalist policy
   B. Domestic policy
   C. Protectionist policy
   D. Beggar-thy-beighbour

8. Two countries can gain from foreign trade if ?

   A. Cost ratios are different
   B. Tariff rates are different
   C. Price ratios are different
   D. A and C of above

9. A rational person does not act unless ?

   A. the action is ethical
   B. The action produces marginal costs that exceed marginal benefits.
   C. The action produces marginal benefits that exceed marginal costs.
   D. The action makes money for the person.

10. If one person’s enjoyment of the benefits of a good does not interfere with another’s consumption of it, the good is said to be ?

    A. limitless in utility
    B. non-rival in consumption
    C. congestible in consumption
    D. non-excludable