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ECO401 Current Final Term Fall 2013 File 2

Differentiate between Actual GDP and Potential GDP.
(Marks: 3)
Differentiate between international trade and international finance.
(Marks: 3)
Calculate the multiplier by using the marginal propensity to consume for MPC =1, MPC =0.90 and MPC =0.67. (Calculate for all three)
(Marks: 3)
Differentiate between risk and uncertainty.
(Marks: 5)
Keeping in view the Keynesian paradox of thrift Explain what is the effect of savings on consumption, output and investment. 
(Marks: 5)
Prepare a Balance Sheet from the given data. (6 items were given) 
(Marks: 5)
Define and explain the main resources which are needed in any kind of production. 
(Marks: 5)
Differentiate between Appreciation and Depreciation. 
(Marks: 5)

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