On This Page
This set of Business Economics Multiple Choice Questions & Answers (MCQs) focuses on Business Economics Set 7
Q1 | The ratio of price of export to price of import is called
- Import price
- Export rate
- Foreign exchange
- Terms of trade
Q2 | Px / Pm is
- Gros barter terms of trade
- Net Barter terms oftrade
- Terms of trade
- Commodity terms of trade
Q3 | When many commodities are traded terms of trade is expresed as _ of its export pricr to import price
- sum
- multiple
- index ratio
- index
Q4 | If import prices rse more than export prices, terms of trade have _
- improved
- deteriorated
- increased
- advanced
Q5 | The limitations of Commodty terms of trade gave rise to _
- Net barter terms of trade
- gross barter term of trade
- single factoral terms of trade
- double fctoral terms of trade
Q6 | A favourable terms of trade indicates _ imports for given exports
- more
- less
- lower
- same
Q7 | is equally important as price of exports
- Income from exports
- Production level of exports
- amount of labor fromexports
- raw materials used for exports
Q8 | A decline in price would increase exports if demand is__
- inelastic
- elastic
- constant
- fluctuating
Q9 | _ _ introduced the concept of Gross barter terms of trade
- Adam Smith
- Alfred Marshall
- F W Taussig
- David Ricardo
Q10 | Single factoral terms of trade take in to account
- Export and import prices
- Changes in efficiency of factors producing export goods
- Changes in demand for imports
- Changes in demand for exports
Q11 | Two countries can gain from foreign trade if
- Cost ratios are different
- Price ratios are different
- Both cost ratios and price ratios are different
- Tarifs are different
Q12 | J.S.Mill brought in _ factor to explain termsof trade
- cost
- demand
- supply
- quality
Q13 | Reciprocal demand is
- Mutual demand of two countriesto each other’s goods
- Mutual supply
- price of export and import
- Investment
Q14 | The developing Countries it is argued usually
- Enjoy Favourable terms of trade
- Suffers from adverse terms of trade
- have better income terms of trade
- have better bargaining power
Q15 | Comparative advantage occurs when ……..than other country .
- A country has more population
- A country can produce more goods
- A country has a lower opportunity cost in the production of a good
- A country has more product lines
Q16 | A tariff------
- Increases the volume of trade
- Reduces the volume of trade
- Has no effect on the volume of trade
- encourages foreign goods
Q17 | Terms of trade of less developed countries are generally unfavourable because
- They export primary goods
- They export capital goods
- They export few goods
- They import few goods
Q18 | According to J S Mill, equilibrium terms of trade is determined by __ demand
- Market
- Aggregate
- Effective
- Reciprocal
Q19 | Marshall and Edgeworth introduced a geometrical device to explain the gains from trade which is known as
- Indifference cur
- Offer curve
- Isoquant
- Demand curve
Q20 | The concept of offer curves is associated with the names of
- David Ricardo
- J S Mill and Alfred
- Alfred Marshall an
- Edgeworth and Pareto
Q21 | The offer curve of a country is based on
- Relative prices
- Price of exports
- Price of imports
- Volume of exports
Q22 | Reciprocal demand is
- Mutual supply
- Ratio of volume of
- Ratio of earnings f
- Mutual demand of tw
Q23 | In a free world in which no restrictions exist, international trade will lead to
- Reduced real li
- Reduced efficiency
- Reduced real GDP
- Increased efficiency
Q24 | A commercial policy is a government policy related to _.
- Commercial transactions of private companies
- Economic transactions across international borders
- Commercial transactions of developed countries
- Taxes
Q25 | The classical economist Adam Smith was a champion of _ .
- Protectionism
- Free Trade
- Trade Wars
- Intra indstry trade