1) What is meant by the great divergence? Thoroughly discuss the theories
of the great divergence. What is its relation with the Industrial
Refers to the process in the 19th century by which the Western world emerged as the
most powerful and w
1. Which one is one of the examples of business secrets?
A. Company Supplier relation
B. Sales technique
C. Company Customer relations
D. All of them
2. Is a current account agreement terminated as;
A. On the date of expiry
B. Notice of either p
1. According to principle of _ , the participations in a commercial enterprice
are free to agree to the legal form at company that best suits their needs ?
Freedom of contract
Right of con
Rebuilding after World War II
Inside the U.S:
Transition from Wartime to Peacetime Economy
American economy after WWII
Americans prospered due to an expanding economy stimulated by Americans
involvement in the war.
Reasons for rapid growt
THE GREAT DIVERGENCE
Refers to the process in the 19 th century by which the Western world emerged
as the most powerful and wealthy world civilization of the time.
Defeating China, Mughal India, Tokugawa Japan, and the Ottoman
THE FIRST WORLD WAR (WWI)
Cause of the War
Historians have traditionally cited four long term causes of the First World
o NATIONALLISM a devotion to the interests and culture of ones
WORLD WAR II (1939 1945)
World War II 1939 1945, a worldwide conflict between two coalitions,
designated as the Axis Powers and the Allies.
The Allies consisted of the United States, the United Kingdom,
THE GREAT DEPRESSION (1920 to 1941)
Worst and longest economic collapse in the history of the modern
industrial world, lasting from the end of 1929 until the early 1940s.
Beginning in the United States, the depression spr
GROWTH AND POLICY
1. Assume a production function with only two inputs, capital and labor. In this case, the
concept of a diminishing marginal product of capital implies that
A) as less capital is being used, more and more lab
Chapter 6 POLITICAL ECONOMY
Political Economy: The field that applies economic principles to the analysis of political
Political economy models assume that individuals view government as a mechanism
for maximizing their sel
GROWTH AND ACCUMULATION
1. Growth accounting explains
A) how economic decisions control the accumulation of capital
B) how the current savings rate affects the stock of capital in the future
C) what part of growth in total outpu
1. Which of the following is NOT a central issue in macroeconomics?
A) How should the central bank of a country fight inflation?
B) What is responsible for high and persistent unemployment?
C) How do tax changes inf
AGGREGATE SUPPLY AND THE PHILLIPS CURVE
1. The theory of aggregate supply is one of the most controversial in macroeconomics because
A) modern models, while similar in their starting points, reach widely different results in
1. A central bank that wants to stabilize the economy in the short run should try to
A) establish a clear inflation target and stick to it no matter what
B) affect aggregate supply through open market operations
AGGREGATE SUPPLY AND DEMAND
1. If factor markets were perfectly competitive, then full employment would be the normal
A) inflation would always be zero
B) output would rise steadily with price increases
C) there wo
If inflation were always perfectly anticipated, then
its real costs would exactly equal the inflation rate
people would hold less cash but would still suffer losses since money balances are always positive
the yield o
1. Investment spending
A) is responsible for much of the fluctuations in GDP
B) is greatly affected by interest rates and is thus the primary link through which monetary policy affects
C) has little effect on agg
MONETARY AND FISCAL POLICY
A change in which of the following will NOT shift the IS-curve?
autonomous money demand
autonomous net exports
INCOME AND SPENDING
1. A consumption function of the form C = Co + cYD has a positive vertical intercept Co, which
A) some consumption is unaffected by changes in disposable income
B) the mpc will increase as disposable income in
1. The record of international trade in goods and services and international transfer payments is
A) the balance of payments
B) the capital account
C) the current account
D) the foreign account
E) the exchange rate
MONEY, INTEREST, AND INCOME
From which of the following equations can the equation for the IS-curve be derived?
I + G + NX = S + TA - TR
Y = C + I + G + NX
M/P = kY - hi
MV = PY
both A) and B)
The two major d
World War II 1939-1945, a worldwide
conflict between two coalitions, designated as
the Axis Powers and the Allies.
The Allies consisted of the United States, the
United Kingdom, the Union of Soviet Socialist
Republics, China and their allies.
1. Which of these people could officially be counted as unemployed?
A) a garage attendant who got fired from his old job two months ago but will start a new job in two
B) a busboy who works only four hours a day, five days a w
1 Which ONE of the following is not a form of contractual formality?
a) A requirement that a contract be executed by deed
b) A requirement that a contract be in writing
c) A requirement that a contract be witnessed and signed by a
judge to verify its lega
ADB Working Paper Series on
Regional Economic Integration
ASEANChina Free Trade Area and the Competitiveness of
Local Industries: A Case Study of Major Industries in the Lao
Peoples Democratic Republic
Leebeer Leebouapao, Sthabandith Insisienmay, and Vant
1. Consideration can be described as:
An exchange of valuable promises
The need to pay in cash
The opposite of an offer
2. Shahid orders a pizza by telephone, and says he will pay on delivery. Which of the following
1) Answer: C, This measure of damages reflects the effect of her so-called duty to mitigate.
2) Answer: B. It is commonly said that the aggrieved party has a duty to mitigate damages, so
A is a tempting choice. But the only effect of that duty is
51. Issue: Third-party beneficiaries Answer: B. Darlene is a classic donee beneficiary, and is a
clearly intended (as opposed to incidental) beneficiary of the contract; therefore, even though she is
not a party to the contract, she can enforce it. Saul i
LAW OF OBLIGATIONS
Terms of the Contract
2. Offer and Acceptance
3. Intention to be Legally Bound
5. Capacity and Formalities
6. Terms of the Contract
7. Exclusion Clauses
The law of obligations is one of the component of
private law of the civil system of law.
between the State
and its citizens)
(rights and duties of