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ECO401 Current Final Term Fall 2013 File 4

Q-54. How a country can have comparative advantage according to Hechshcer-Ohlin and what were the critics against this.
Q-55. Prove the multiplier from the following equations
Y=C+I+G+NX and C=a+bY
Q-56. If MPC=0.84 and Tax is 0.27. Calculate the multiplier by adjusting the taxes.
Q-57. What does the Prebisch-Singer Hypothesis (PSH) says about the problems of LICs?
Q-58. How does the indifference curve for demand will look like for the following
a. The customer cannot distinguish between product A and B because of same brand and qualities.
b. Product A and B are shoes in a store.
Q-60. What were the weaknesses of Exogenous theory. Which theory replaced exogenous theory?

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