Description : Trade between two countries can be useful if cost ratio of goods are A. Equal B. Different C. Undetermined D. Zero
Last Answer : Different
Description : If the production possibility curve is linear, then production is said to be subject of (a) constant opportunity cost (b) decreasing opportunity cost © Increasing opportunity cost (d) first increasing then decreasing opportunity cost.
Last Answer : (a) constant opportunity cost
Description : Terms of trade in developing countries are generally unfavourable because (a) They export manufacturing products. (b) They export primary products. © They export few goods. (d) Both (a) and (c).
Last Answer : (b) They export primary products.
Description : . Terms of trade is (a) the ratio of imports / exports (b) the ratio of exports/imports © the ratio of goods/services (d) the ratio of land/labour
Last Answer : (b) the ratio of exports/imports
Description : The contribution of agricultural sector is decreasing in India’s economy then what conclusion can be drawn? (a) India is growing towards a developed economy. (b) India is growing towards a developing economy. © India is growing towards a less developed economy. (d) None of the above.
Last Answer : (a) India is growing towards a developed economy.
Description : According to Heckscher and Ohlin there are two bases of international trade (a) coparative advantage and absolute advantage (b) gains from trade and cost of trade. © difference in factor endowments and differences in factor intensities. (d) none of them.
Last Answer : © difference in factor endowments and differences in factor intensities.
Description : Comparative advantage occurs when (a) A country can produce more goods than anyone else (b) A country has a lower opportunity cost in the production of a good than any other country © A country has more product lines than other countries (d) The exchange rate appreciates.
Last Answer : (b) A country has a lower opportunity cost in the production of a good than any other country
Description : .In Heckscher Ohlin theory production function differ between commodities but are same between---- (a) countries. (b) factors © costs. (d) revenues.
Last Answer : (a) countries.
Description : Gains from trade can be divided into two parts (a) gains from exports and gains from imports. (b) gains from specialization and gains from exchange. © gains from consumption and gains from production. (d) gains from profit and gains from loss.
Last Answer : (b) gains from specialization and gains from exchange.
Description : In autarky equilibrium (a) production=consumption. (b) export=import © there is no trade (d) all of the above.
Last Answer : (a) production=consumption.
Description : A tariff------ (a) Increases the volume of trade. (b) Reduces the volume of trade. © Has no effect on the volume of trade. (d) Both (a) and (c).
Last Answer : (b) Reduces the volume of trade.
Description : ’Infant industry argument’ in international trade is given in support of (a) Granting protection (b) Free trade © Encouragement to export oriented small and tiny industry (d) None of the above.
Last Answer : (a) Granting protection
Description : Which of the following is not a benefit of international trade? (a) Lower domestic prices (b) Development of more efficient methods of production © A wider selection of products for domestic consumers (d) High wage levels for all domestic workers.
Last Answer : The theory of comparative cost advantage is given by
Description : The terms of trade measures (a) the income of a country compared to another (b) The GDP of a country compared to another © The quantity of exports of a country compared to another (d) Export prices compared to import prices.
Last Answer : (d) Export prices compared to import prices.
Description : .Free trade is based on the principle of (a) Comparative advantage (b) Comparative scale © Economies of advantage (d) Production possibility advantage
Last Answer : (a) Comparative advantage
Description : According to Singer and Prebisch in the long run terms of trade moves in favour of ---- products and against ---- products. (a) primary, secondary (b) secondary, primary © goods, service (d) stocks, flows.
Last Answer : (b) secondary, primary
Description : ” If a country enjoys an absolute advantage in the production of all commodities then also trade is possible”. Who said this? (a) Adam Smith (b) David Ricardo © J.S Mill (d) None of them.
Last Answer : (b) David Ricardo
Description : If two standard form categorical propositions with the same subject and predicate are related in such a manner that if one is undetermined the other must be undetermined, what is their relation? (A) Contrary (B) Subcontrary (C) Contradictory (D) Subaltern
Last Answer : (C) Contradictory
Description : Rich countries have deficit in their balance of payments (a) Sometimes. (b) Always. © Never. (d) Alternate years.
Last Answer : (a) Sometimes.
Description : Which of the following states/union territories has the lowest sex ratio? (a) Kerala (b) Goa. © Delhi (d) Haryana.
Last Answer : © Delhi
Description : Changing MTBF will: a. have no impact on Perceived Age. b. increase Perceived Age. c. decrease Perceived Age. d. change Perceived Age. e. is undetermined.
Last Answer : a. have no impact on Perceived Age.
Description : Difference between average cost and average revenue is (a) total profit (b) net profit © average profit (d) marginal profit
Last Answer : © average profit
Description : Opportunity cost is a/an (a) spill-over cost (b) money cost © alternative cost (d) social cost
Last Answer : © alternative cost
Description : The law of diminishing marginal utility is most useful for explaining the (a) Law of supply (b) Law of demand © Shape of production possibility curve (d) curvature of total cost curve
Last Answer : (b) Law of demand
Description : flation (a) Always reduces cost of living (b) Always reduces standard of living © Reduces price of products (d) Reduces purchasing power of money
Last Answer : (d) Reduces purchasing power of money
Description : Demand pull inflation may be caused by (a) An increase in cost (b) A decrease in interest rate © A reduction in government spending (d) An outward shift of aggregate supply.
Last Answer : (b) A decrease in interest rate
Description : The cost of borrowing is equal to marginal propensity to consume. 21. Investment is (a) An injection that increases aggregate demand (b) An withdrawal that increases aggregate demand © An injection that decreases aggregate demand (d) An withdrawal that decreases aggregate demand
Last Answer : a) An injection that increases aggregate demand
Description : A profit maximizing firm will invest up to the level of investment where (a) The cost of borrowing equals marginal efficiency of capital (b) The cost of borrowing is greater than marginal ... marginal efficiency of capital (d) The cost of borrowing is equal to marginal propensity to consume.
Last Answer : (a) The cost of borrowing equals marginal efficiency of capital
Description : Lower interest rates are likely to (a) Decrease consumption. (b) Increase cost of borrowing. © Encourage saving. (d) Increase borrowing and spending.
Last Answer : (d) Increase borrowing and spending.
Description : Demand curve remaining the same, if the supply curve shifts to the right then (a) Price and quantity move in the same direction (b) Price and quantity move in the opposite direction © Price and quantity remain unchanged (d) None of the above.
Last Answer : (b) Price and quantity move in the opposite direction
Description : Demand curve shifts downwards when (a) at the same price level demand falls (b) price increases and demand falls © price falls and demand also falls (d) at the same price level demand increases
Last Answer : © price falls and demand also falls
Description : In which type of cropping different crops are planted in proximity for any of a number of different reasons, including pest control, pollination, providing habitat for beneficial creatures, ... crop productivity? a. Companion Cropping b. Mixed Cropping c. Overlapped cropping d. Intercropping
Last Answer : a. Companion Cropping
Description : 'PROTECTION' means - (1) Restrictions imposed on import trade (2) Protection to home industries (3) No free exchange of goods and services between two countries (4) All of the above
Last Answer : (4) All of the above Explanation: Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a ... protect businesses and workers within a country by restricting or regulating trade with foreign nations.
Description : Theoretically trade between two countries lakes place on account of - (1) differences In costs (2) scarcity of goods (3) comparative differences in costs (4) need for exports
Last Answer : (3) comparative differences in costs Explanation: Trade exists for man clue to specialization and division of labor, most people concentrate on a small aspect of production, trading for other ... for the benefits of mass production thus providing cost advantage of producing the same commodity.
Description : Trade between two countries is considered as ----trade (a) External (b) Internal (c) Inter- regional (d) None of the above.
Last Answer : (a) External
Description : Theoretically trade between two countries lakes place on account of (1) differences in costs (2) scarcity of goods (3) comparative differences in costs (4) need for exports
Last Answer : comparative differences in costs
Description : ‘PROTECTION’ means (1) Restrictions imposed on import trade (2) Protection to home industries (3) No free exchange of goods and services between two countries (4) All of the above
Last Answer : All of the above
Description : he annual record for all the monetary transactions of a country with other countries of the world is known as - (1) Balance of trade (2) Balance of monetary-receipts (3) Balance of payments (4) Balance Sheet
Last Answer : (3) Balance of payments Explanation: Balance of payments (BoP) accounts arc an accounting record of all monetary transactions between a country and the rest of the world. These transactions include ... and are prepared in a single currency, typically the domestic currency for the country concerned.
Description : A closed economy is one which - (1) Does not trade with other countries (2) Does not possess any means of international transport (3) Does not have a coatastal line (4) (4) Is not a member of the U.N.O.
Last Answer : (1) Does not trade with other countries Explanation: A closed economy is one that has no exports or imports. An open economy is one that has exports and imports. In a closed ... surplus. In a closed economy, equilibrium price and equilibrium quantity determine consumer surplus and producer surplus.
Description : The annual record for all the monetary transactions of a country with other countries of the world is known as (1) Balance of trade (2) Balance of monetary-receipts (3) Balance of payments (4) Balance Sheet
Last Answer : Balance of payments
Description : A closed economy is one which (1) Does not trade with other countries (2) Does not possess any means of international transport (3) Does not have a coatastal line (4) Is not a member of the U.N.O.
Last Answer : Does not trade with other countries
Description : Factors of production in Input Output model is---- (a) one (b) two © three (d) four
Last Answer : (a) one
Description : In Input Output model only----product is produced (a) One (b) Two © Three (d) Four
Last Answer : (a) One (d) Four
Description : In Leontief’s model own input coefficient’s are less than---- (a) Four (b) Three © Two (d) One
Last Answer : (d) One
Description : A price consumption curve, traces the utility maximizing combination of two goods when (a) the price of one good changes (b) the consumer’s preference change © the consumer’s income changes (d) the demand curve for one of the goods shifts rightward
Last Answer : (a) the price of one good changes
Description : In case of horizontal demand curve , price elasticity of demand is (a) equal to zero (b) equal to one © equal to two (d) infinite
Last Answer : (a) equal to zero
Description : There are ----types of line diagram (a) one (b) two © three (d) four
Last Answer : (b) two
Description : . In Heckscher Ohlin theory factors of production are---in number. (a) one (b) two © three (d) four
Description : Leontief’s model is open due to the fact that final demand is given from----- the system (a) within (b) outside © both (a) and (b) (d) none of the above.
Last Answer : (b) outside
Description : Leontief”s model explains a----- equilibrium. (a) static (b) dynamic © both static and dynamic (d) none of the above
Last Answer : (a) static