International Economics Set 4
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This set of International Economics Multiple Choice Questions & Answers (MCQs) focuses on International Economics Set 4
Q1 | Protectionist trade policy is associated with
- mercantilists
- heckscher and ohlin
- modern trade theory
- wto
Q2 | Modern trade theory is developed by
- adam smith
- heckscher and ohlin
- david recardo
- karl marx
Q3 | According to ________ even though a country is absolutely disadvantageous inboth commodities there is still possibility for trade
- adam smith
- heckscher and ohlin
- david recardo
- karl marx
Q4 | Principles of Political Economy and Taxation is the book of
- adam smith
- heckscher and ohlin
- david recardo
- karl marx
Q5 | Who reoriented comparative advantage theory?
- adam smith
- j m keynes
- haberler
- karl marx
Q6 | Haberler reconstituted comparative advantage theory on the basis of ____
- opportunity cost theory
- labour theory of value
- money
- non of the above
Q7 | Factor endowment theory is also known as
- heckcher ohlin theory
- limit pricing theory
- labour theory of value
- opportunity cost theory
Q8 | The accounting system used in BOP
- double entry book keeping system
- the balance of payment system
- system of national accounting
- none of the above
Q9 | PPP theory is associated with the determination of _______
- exchange rate
- money value
- tariffs
- quatas
Q10 | The analysis method used in Leontief’s study
- factor price equalization theorem
- double entry book keeping system
- input – output analysis
- none of the above
Q11 | India is NOT a _____ abundant nation
- labour
- capital
- human capital
- natural resources
Q12 | According to HO Model, India should import ______ abundant goods
- labour
- capital
- human capital
- natural resources
Q13 | When a commodity is produced with low K/L ratio that commodity is ______intensive commodity
- labour
- capital
- human capital
- natural resources
Q14 | A situation where one commodity is capital intensive in one country and labourintensive in another country is called
- opportunity cost
- factor price equalization
- leontiff paradox
- faction intensity reversal
Q15 | According to Rybczyski theorem commodity price should be
- constant
- increasing
- decreasing
- either increasing or decreasing
Q16 | Product transformation curve is also called
- production indifference curves
- production possibility frontier
- isoquants
- all the above
Q17 | Current and capital accounts are examples of
- autonomous transactions
- accommodating transactions
- unilateral transactions
- balance of trade
Q18 | Paper gold is also known as
- us dollar
- pound sterling
- sdr
- indian rupee.
Q19 | SDR is the official currency of
- imf
- world bank
- un
- non of the above
Q20 | Which of the following is NOT true?
- Small countries depend more on trade than large countries.
- U.S. imports exceed U.S. exports.
- Economists believe that international trade is beneficial for all countries involved in it, in most cases.
- Imports cannot exceed exports for an extended period of time.
Q21 | The term "gains from trade" describes:
- The fact that when two countries trade, both are better off.
- Consumer surplus.
- Profits made by businessmen involved in international trade.
- Producer surplus.
Q22 | Why do some people argue against free international trade?
- Trade alters the distribution of income between broad groups of people.
- Free trade threatens our country's security.
- There is disagreement on whether or not there are gains from trade.
- The U.S. is a large country and therefore does not gain from international trade.
Q23 | Which of the following theories was proposed by David Ricardo?
- Theory of differences in labor productivity.
- Theory of differences in climate and resources.
- Theory of random components determining the pattern of trade.
- Theory of differences in factor endowments.
Q24 | What are most trade policies driven by?
- Conflicts of interest between nations.
- Conflicts of interest within nations.
- Disagreements regarding who should produce certain products.
- Disagreements on the prices of major commodities.
Q25 | Many countries were fixing the price of their currency in terms of gold:
- Before World War I.
- During World War I.
- After World War II.
- During World War II.