Under Which of the following conditions would you prefer to be the borrower ?

A. The nominal rate of interest is 12 percent and the inflation rate is 9 percent
B. The nominal rate of interest is 20 percent and the inflation rate is 25 percent
C. The nominal rate of interest is 5 percent and the inflation rate is 1 percent
D. The nominal rate of interest is 15 percent and the inflation rate is 14 percent

If there is an increase in the price of apples which causes consumers to purchase fewer kilograms of apples and more kilograms of oranges, the CPI will suffer from ?

A. None of these answers
B. Substitution bias
C. Base year bias
D. Bias due to unmeasured quality change

Suppose your income rises from Rs19,000 to Rs31,000 while the CPI rises from 122 to 169 Your standard of living has likely ?

A. Fallen
B. You can’t tell without knowing the base year
C. Risen
D. Stayed the same

Guest worker programs usually result in temporary migration of workers from ?

A. Impoverished countries to impoverished countries
B. Impoverished countries to wealthy countries
C. Wealthy countries to wealthy countries
D. Wealthy countries to impoverished countries

Inflation can be measured by all of the following except the ?

A. all of these answers are used to measure inflation.
B. consumer price index
C. producer price index
D. gdp deflector

Which of the following would probably cause the CPI to rise more than the GDP deflator in the Pakistan ?

A. An increase in the price of bmws produced in germany and sold in the pakistan
B. An increase in the price of peugeots produced in the pakistan
C. An increase in the price of helicopters purchased by the pak navy.
D. An increased in the price of domestically produced armoured vehicles sold exclusively to iran

The migration of employable workers from low-paying nations to high-paying nations will ?

A. Decrease wage rates in the low-paying nations
B. Decrease productivity and real output in the world
C. Increase business or capitalist incomes in the high-paying nations
D. Increase business or capitalist incomes in the low-paying nations

The migrations of electricians from low-paying nations to high-paying nations is most likely to be challenged by ?

A. Electrician unions in the high-paying nations
B. Electrician unions in the low paying nations
C. Electrician employers in the high-paying nations
D. Electricians who stay in the low paying nations

Multinational corporations ?

A. Increase the transfer of technology between nations
B. Make it harder to nations to foster activities of comparative advantage
C. Always enjoy political harmony in nations where their subsidiaries operate
D. Require governmental subsidies in order to conduct worldwide operations

Multinational corporations face problems since they ?

A. Cannot benefit from the advantage of comparative advantage
B. May raise political problems in countries where their subsidiaries operate
C. Can only invest at home but not overseas
D. Can only invest overseas but not at home