Which of the following pairs of commodities is an example of substitute goods?

1. 1. Pen and Ink
   2. Gold and Water
   3. Mustard oil and Coconut oil
   4. Left shoe and right shoe

Which one of the following could best be regarded as an “entrepreneur”?

1. 1. A grain merchant
   2. A bank manager
   3. A football club manager
   4. A sales girl in a dress shop

The price system ensures _____.

1. 1. efficiency in production
   2. allocation of goods to those who can pay for it
   3. equity in distribution
   4. Optimum utilization of resources

What would cause a country’s exchange rate to fall?

1. 1. Increased demand for its imports
   2. Increased demand for its exports
   3. Increased inflow of capital
   4. None of these

If TOYOTA company establishes a factory in Pakistan, this will be recorded in balance of payments in the section _____.

1. 1. Invisible Balance
   2. Official Financing
   3. Capital Account
   4. Visible Balance

If GNP of Pakistan rises, it will encourage _____.

1. 1. Exports
   2. Imports
   3. Both (a) and (b)
   4. None of these

What will be the expected result if the value of rupee falls against dollar?

1. 1. The price of American goods in Pakistan will rise
   2. The price of Pakistani goods in the USA will rise
   3. The price of Pakistani goods in Pakistan will fall
   4. The price of American goods in the USA will fall

Which property the paper money does not possess?

1. 1. Acceptability
   2. Divisibility
   3. Portability
   4. Durability

The bank established for loans to very small enterprises in Pakistan is called _____.

1. 1. Khushhali Bank
   2. Modarba Bank
   3. SME Bank
   4. First Mini Bank

Which of the following statements is correct regarding a tariff?

1. 1. It increases the volume of trade
   2. It has no effect on volume of trade
   3. It reduces the volume of trade
   4. None of these