T.Y.B.Com – ECONOMICS SEM VI
IMPORTANT OBJECTIVE QUESTIONS
1. According to ___ the essence for
international trade is not the absolute difference in cost but comparative
difference in cost.
(a)
Adam Smith
(b) David Ricardo
(c)
Marshall
(d)
None of above
2. The comparative cost advantage theory
is based on ___ .
(a)
Increasing returns to scale
(b) constant returns to scale
(c)
Decreasing returns to scale
(d)
None of above
3. Ricardian theory concentrates on
the ___ of goods.
(a)
Demand
(b) supply
(c)
consumption
(d) None of above
4. ___ Theory is based on only two countries and only two commodities
(a)
Adam Smith
(b) David Ricardo
(c) Marshall
(d)
None of above
5. According to
Ricardo international trade is beneficial under___
(a)
Absolute cost
(b) comparative cost
(c) Equal
difference in cost
(d)
None of above
6. Ricardian
theory assumes perfect mobility of labour___
(a)
between the countries
(b) within the country
(c) both
within and between the countries
(d)
None of above
7. Ricardian
theory measures comparative cost in terms of ___
(a)
money
(b) labour days
(c) cost of
all inputs
(d)
None of above
8. The modern
theory of international trade was given by ___ .
(a) Adam Smith
(b)
Heckscher Ohlin
(c) Marshall
(d) Ricardo
9. In Modern
theory ___ is the responsible factor.
(a) Labour
(b)
Factor abundance
(c) Money
(d) None of above
10. H.O theory
can explain ___ .
(a) Inter regional trade
(b) International trade
(c) Both a and b
(d)
None of above
11. Ohlin’s
theory of international trade is also known as
___ .
(a) Traditional theory
(b)
Modern theory of international trade
(c)
Opportunity cost theory
(d)
None of above
12. Modern
theory is based on the assumption of ___
.
(a) trade between many countries
(b)
Free trade
(c) Labour
intensive production
(d)
None of above
13. Gains from
trade will be more of a country in its trade terms are____ to international
terms of trade
(a) Closed
(b)
nearer
(c) Open
(d) None of above
14 Higher
income will help the people of a country to ____ cheaper goods
(a) Export
(b)
Import
(c) Produce
(d) None of above
15 If a
country attempts to produce everything it requires ____
(a) lower cost and lower production
(b)
higher cost and lower production
(c) higher cost and higher production
(d) lower cost and higher production.
16 An increase
in import prices or declining in export prices will ____
(a) improves terms of trade
(b)
worsen terms of trade
(c) no effect
on terms of trade
(d) none of these
17 Due to
international trade the country has a ____
(a) lower combination of goods
(b)
larger combination of goods
(c) lesser combination of goods
(d) fewer combination of goods
18 Terms of
trade are expressed as ____ .
(a) Cost ratio
(b)
ratio of price index of exports and imports
(c) Profit ratio
(d) none of these
19 Terms of
trade are favourable if the current index in comparison to the base year index
is ____ .
(a) Less
(b)
more
(c) same
(d) none of these
20 Income terms
of trade tells increased capacity to
____ .
(a) export
(b)
import
(c) investment
(d) none of these
21 ____ terms
of trade refer to the ratio of volume of imports to the volume of exports.
(a) export
(b)
Gross
(c) investment
(d) none of these
22 International
trade increases the welfare of ____ .
(a) only exporting countries
(b)
all participating countries
(c) only importing countries
(d) none of these
23 An
overpopulated country will have ____
terms of trade because of increased demand for imports.
(a) favorable
(b)
Unfavorable
(c) both a and b
(d) none
of these
24 Single
factoral and double factoral terms of trade were developed by ____.
(a)
Adam smith
(b) Jacob Viner
(c) David Ricardo
(d) Alfred Marshall
25 ________ is one of the disadvantage of international economic integration.
(a) cross-border investment flows
(b) employment generation
(c) increasing
independence
(d) conflict resolution
26 The ________ was signed to create the EU in 1993.
(a) Treaty of
Maastricht
(b) Treaty of Rome
(c) Treaty of Lisbon
(d) Treaty of London
27 The euro replaced the national currencies of 12 EU member nations in the year
(a) 1997
(b) 2002
(c) 2000
(d) 1995
28 The
functioning of the EU single market in governed by
(a) Treaty of Rome
(b) Treaty of Amity and Cooperation
(c) European Financial Stability Facility
(d) Treaty of the Functioning of European Union
29 ASEAN was formed in
(a) 1967
(b) 1965
(c) 1999
(d) 2000
30 The ________ was established in 2015 to bring about economic integration to
create a single market in ASEAN.
(a) ATIGA
(b) AEC
(c) AFTA
(d) ABIF
31. The aim of ABIF is to establish
(a) Banking integration in ASEAN
(b) Food security in ASEAN
(c) Free labour market in ASEAN
(d) Customs union in ASEAN
32. Very few countries enjoys surplus on ____
account
(a) Capital
(b)
Current
(c) Saving
(d) None of above
33 Devaluation
aims at influencing the prices of only ____ goods
(a) Consumer
(b)
traded
(c) Industrial
(d) None of above
34 ____ is a
measure of correcting disequilibrium is unpopular.
(a) Depreciation
(b)
Deflation
(c) Devaluation
(d) None of above
35 ____ takes place in smaller percentage due to
operation of the market forces.
(a) De valuation
(b)
Depreciation
(c) Re valuation
(d) None of above
36 ____ are very easy to implement.
(a) Law
(b)
Quota
(c) Tariffs
(d) None of above
37
Implementation of ____ are open to corruption.
(a) Law
(b)
Quotas
(c) Politics
(d) None of above
38 ____
measures goes against the principle of comparative advantage
(a) Quota
(b)
Import Substitution
(c) Export promotion.
(d) None of above
39 ____
measures goes against the principle of comparative advantage
(a) Quota
(b)
Import Substitution
(c) Export promotion.
(d) None of above
40 Trade
account is also referred as ____
(a) intangible
(b)
tangible
(c) short term
(d) long term
41 Current
account includes ____
(a) Unilateral receipts only
(b) Statistical discrepancy
(c) Unilateral payments only
(d)
Unilateral receipts and payment both
42 India has a
worst experience of current account deficit in the year ____
(a) 1993
(b)
1991
(c) 2009
(d) 2008
43 A purchase
of government bonds come under the ____
(a) Short term investment
(b)
long term investment
(c) Long term borrowings
(d) Short term borrowings
44 Surplus as
well as deficit indicate ____ in the balance of payment.
(a) Equilibrium
(b)
Disequilibrium
(c) Balance
(d) Dis balance
45 One of this
is a business cycle
(a) Appreciation
(b)
Depression
(c) Depreciation
(d) Appraisal
46 Most of
the ____ countries have been undergoing
structural adjustments in recent years.
(a) Developed
(b)
Developing
(c) Under developed
(d) None of these.
47 ____ may
also undergo structural changes due to change in factors of production.
(a) Money market
(b)
factor market
(c) Share market
(d) Different sectors market.
48 Fundamental
disequilibrium is also known as ____
(a) Structural disequilibrium
(b)
Long run disequilibrium
(c) Cyclical disequilibrium
(d) Short run disequilibrium
49 A company
with disequilibrium may opt for
____
(a) Monetary measures
(b) Non monetary measures
(c) Economical study
(d)
Both a and b
50 Industries
which produces import substitution requires special attention in the form of
concession of
(a) tax concession
(b) technical assistance
(c) subsidies
(d)
all of the above.
51 India’s
resources to the commercial borrowings totally dried up as the credit rating
agencies ____
(a)
down graded India
(b) black listed India
(c) Un favoured India
(d) had given loan over limit to
India
52 Trade
balance was always in deficit as ____
(a)
import was above exports
(b) import was below exports
(c) imports and exports were equal
(d) None of above
53 ____ has
been the major contributor to invisible trade
(a)
Non factor service
(b) Factor service
(c) Service sector
(d) I.T sector
54 ____ in
forms of concessional loans, commercial borrowings and NR deposits continue to
increase.
(a)
External assistance
(b) Internal assistance
(c) both a and b
(d) None of above
55 The
increase in foreign investment are mainly due to____
(a)
Liberal external policy
(b) Global external policy
(c) International development and co
operation
(d) International surpluses
56 Invisible
head includes ____
(a) non factor service
(b) Income
(c) Private transfers
(d)
all of the above
57 In foreign
investment ____ of the following is an
important part.
(a) Gold
(b)
Euro equities and others
(c) both a and b
(d) none of above
58 Income from
investment in abroad brings income in the form of ____
(a) inward remittance from Indian
workers abroad for family maintenance
(b) miscellaneous receipts
(c) trade receipts
(d)
interest and dividend
59 ____ is not
a cause of deficit in balance of payments.
(a)
Capital inflows
(b) Capital outflows
(c) Increase in imports
(d) Fall in exports
60 Reducing
public expenditure to correct BOP disequilibrium is a ____ measure.
(a)
Fiscal
(b) Monetary
(c) Special
(d) Fall in exports
61 WTO is a
member that drives ____ based organization.
(a)
Consensus
(b) Sensus
(c) Mutual
(d) None of above
62 The rules
on ____ are designed to secure fair conditions of trade.
(a) Discrimination
(b)
Non Discrimination
(c) Both a and b
(d) None of above
63 Agreement
on agricultural covers ____
(a) Tariff reduction
(b) Increase in market access
(c) Reduction in export subsidies
(d)
All of above
64 TRIMs
provide treatment of ____ on par with
domestic investment.
(a)
Foreign investment
(b) Government investment
(c) Capital investment
(d) Private investment
65 A transition
period of ____ years is available to all developing nations to give effect to
the provision of TRIPs
(a)
5
(b) 6
(c) 7
(d) 8
66 WTO deals
with ____
(a)
International trade
(b) Balance of Payments
(c) International aid
(d) none of above
67 MFN clause
of WTO treats all members countries
____
(a)
Equally
(b) Differentially
(c) Preferentially
(d) none of above
68
___ refers to the delivery date of the currency.
(a) Spot rate
(b)
Spot date
(c) Spot exchange rate
(d) spot transactions
69 The dealers
in ___ market are highly professional and are the primary price maker.
(a) Foreign market
(b)
Whole sale market
(c) Retail market
(d) Forward market
70 Indian
foreign exchange market is made up of ___ .
(a) One tier
(b)
three tier
(c) two tier
(d) four tier
71 Covering
risk also attempt to earn profit by taking advantage of ___
(a) Retail market
(b)
Forward exchange market
(c) Indian market
(d) Whole sale market.
72 ___
possesses more information and better knowledge of the market.
(a) Agent
(b)
broker
(c) Middleman
(d) none of above.
73 Destabilizing
speculation refers to sale of foreign currency when the exchange rate ___
.
(a) Rise
(b)
Falls
(c) Stable
(d) None of above
74 Arbitrage
takes place because of ___ .
(a) different in bid and ask price
of different banks
(b) difference in exchange rate in
different places
(c)
both a and b
(d) None of above
75 ___
involves simultaneous buying and selling of an asset in two markets in order to
gain profit from the price differences between the two markets.
(a) Speculations
(b)
Arbitrage
(c) Risk
(d) none of these
76 ___ of
goods contribute a major part of total imports.
(a) Export
(b)
Import
(c) Entreport
(d) None of above
77 The exchange
rate determined by the ___ force changes as forces changes in the market.
(a) Demand
(b)
Market
(c) Supply
(d) None of above
78 The foreign
exchange rate is the rate at which the currency of a country is ___ against the
currency of another country.
(a) Export
(b)
Exchanged
(c) Produced
(d) None of above
79 Relative___
rate of two countries will influence the exchange rate
(a) Deflation
(b)
Inflation
(c) Hyper inflation
(d) None of above
80. A currency
that is universally accepted is known as
___
(a) Nominal currency
(b)
Vehicle currency
(c) Depreciated currency
(d) None of above
81 PPT theory has ___ versions
(a)
1
(b) 2
(c)
3
(d)
None of above
82 PPP theory considers that all prices
and cost rise or fall ___ .
(a)
Constantly
(b) Uniformly
(c)
Continuously
(d)
None of above
83 PPP theory does not consider___ of
goods.
(a)
Quantity
(b) Quality
(c)
All
(d)
None of above
84 ___
authorities may slow down or avoid the spiral.
(a) Intervenes
(b)
Intervention
(c) Speculative
(d) none of above
85 ___ leads
to inflationary pressure.
(a) Overvaluation
(b)
undervaluation
(c) Fluctuation
(d) None of these.
86 Under ___
the responsibility of Central bank would increase.
(a) Liberalization
(b)
Globalization
(c) Modernization
(d) Nationalization
87 A unified
market determined exchange rate was introduced in ___
(a) 1975
(b)
1993
(c) 1950
(d) 2000.
88 Flexible
exchange rate system creates___ .
(a) Confidence
(b)
uncertainty
(c) Full employment
(d) none of above
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Sir HRM ka MCQ nhi Mila abtk..
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