McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
Chapters
| 51. |
The classical economist Adam Smith was a champion of _ . |
| A. | Protectionism |
| B. | Free Trade |
| C. | Trade Wars |
| D. | Intra indstry trade |
| Answer» B. Free Trade | |
| 52. |
The origin of protectionist policy can be traced back to _ __. |
| A. | Free trade era |
| B. | Mercantilists days |
| C. | Globalisation period |
| D. | Brettonwoods system |
| Answer» B. Mercantilists days | |
| 53. |
Infant Industry Argument is justified for _ . |
| A. | Protecting old industries |
| B. | For enabling competitive efficiency of industries |
| C. | For strengthening public sector |
| D. | For allowing free trade |
| Answer» B. For enabling competitive efficiency of industries | |
| 54. |
Pick out the wrong statement. |
| A. | Tariffs are primarily levied to earn revenue. |
| B. | Tariffs are levied to protect domestic industries. |
| C. | Tariffs reduce the prices of the commodity on which it is levied. |
| D. | Tariffs affect the income and employment. |
| Answer» C. Tariffs reduce the prices of the commodity on which it is levied. | |
| 55. |
Pick out the wrong statement. |
| A. | Tariffs restrict trade |
| B. | Import quotas have a direct effect in reducing imports |
| C. | Voluntary export restraint is an example of tariff barriers. |
| D. | An export subsidy is a government grant given to an export firm. |
| Answer» C. Voluntary export restraint is an example of tariff barriers. | |
| 56. |
Economic integration means. |
| A. | Application of tariffs |
| B. | Removal of customs duties |
| C. | Banning the movement of goods and services |
| D. | banning trade |
| Answer» B. Removal of customs duties | |
| 57. |
_ is the highest form of economic integration. |
| A. | Preferential trading system |
| B. | Free trade union |
| C. | Customs union |
| D. | Economic union |
| Answer» D. Economic union | |
| 58. |
The European Economic Community (EEC) was founded in 1957 under the treaty of _. |
| A. | Paris |
| B. | Rome |
| C. | Washington |
| D. | Veraiiles |
| Answer» B. Rome | |
| 59. |
Pick out the feature which does not describe European Union. |
| A. | Common currency |
| B. | Elimination of customs duties on the movement of goods. |
| C. | Independent policies for agriculture among member nations. |
| D. | Creation of a European Social Fund to improve employment opportunities of workers. |
| Answer» C. Independent policies for agriculture among member nations. | |
| 60. |
European union was initially formed with _ European countries. |
| A. | 27 |
| B. | 28 |
| C. | 6 |
| D. | 5 |
| Answer» C. 6 | |
| 61. |
Prime Minister _ announced the government’s intention that U.K. will not seek permanent membership of the European single market or the EU customs union after leaving the EU. |
| A. | David Cameroon |
| B. | Trump |
| C. | Narendra Modi |
| D. | Theresa May |
| Answer» D. Theresa May | |
| 62. |
The referendum for Brexit was held on _ . |
| A. | July 1st 2017 |
| B. | June 23rd 2016 |
| C. | September 1, 2017 |
| D. | July 23rd 2016 |
| Answer» B. June 23rd 2016 | |
| 63. |
The full form of ASEAN is _ . |
| A. | Association of South East African Nations |
| B. | Association of South Europe Allied Nations |
| C. | Association of South East Asian Nations |
| D. | Association oS Southern,eastern European Nations |
| Answer» C. Association of South East Asian Nations | |
| 64. |
ASEAN was formed with the signing of _. |
| A. | European declaration |
| B. | American declaration |
| C. | Asean declaration |
| D. | Bangkok declaration |
| Answer» D. Bangkok declaration | |
| 65. |
Pick out the wrong statement. |
| A. | The objective of ASEAN is to achieve economic, political, social and cultural co- operation among its members. |
| B. | U.K. is a member of ASEAN |
| C. | There will be free movement of goods and services within ASEAN |
| D. | ASEAN FTA will improve business competitiveness between the members. |
| Answer» B. U.K. is a member of ASEAN | |
| 66. |
The objective of commercial policy is / are _ . |
| A. | increase trade relation |
| B. | endanger domestic market |
| C. | allow import of goods |
| D. | Restrict exports |
| Answer» D. Restrict exports | |
| 67. |
Under free trade _ benefit more. |
| A. | consumer |
| B. | agents |
| C. | middlemen |
| D. | traders |
| Answer» A. consumer | |
| 68. |
Under free trade __ will be higher. |
| A. | wages |
| B. | trade wars |
| C. | civil wars |
| D. | restrictions |
| Answer» A. wages | |
| 69. |
Free trade is based on the principle of _ _ . |
| A. | Comparative cost advantage |
| B. | Comparative disadvantage |
| C. | Production possibility advantage |
| D. | Equal cost |
| Answer» A. Comparative cost advantage | |
| 70. |
Which of the following is not an argument for protectionism . |
| A. | to protect infant industries |
| B. | to increase the level of imports |
| C. | to protect small industries |
| D. | to improve the balance of payments |
| Answer» B. to increase the level of imports | |
| 71. |
A tariff is a tax on _ _ . |
| A. | domestic goods and services |
| B. | foreign goods and service |
| C. | quality of goods |
| D. | None of the above |
| Answer» B. foreign goods and service | |
| 72. |
Protectionism |
| A. | increase the quality of imports |
| B. | decrease the government revenue |
| C. | increase the government earnings from tax |
| D. | decrease the government earnings from tax |
| Answer» C. increase the government earnings from tax | |
| 73. |
Which of the following is an argument far free trade _ . |
| A. | prevents monopolies |
| B. | unfavourable terms of trade |
| C. | unfavourable balance of payments |
| D. | allows monopolies |
| Answer» A. prevents monopolies | |
| 74. |
The main objective of trade barriers are _ . |
| A. | to discourage new industries domestically |
| B. | to reduce unnecessary imports |
| C. | to spend valuable foreign exchange |
| D. | To allow free trade |
| Answer» D. To allow free trade | |
| 75. |
_ is a type of tariff barriers. |
| A. | Embargo |
| B. | Ad–valorem duties |
| C. | Product standard |
| D. | Consular Formalities |
| Answer» B. Ad–valorem duties | |
| 76. |
_ _ is a type of non – tariff barriers. |
| A. | Import Quotas |
| B. | Export duties |
| C. | Import Duties |
| D. | Specific Duties |
| Answer» A. Import Quotas | |
| 77. |
An international trading company of the Government of India _. |
| A. | State Transport Corporation |
| B. | State Service Corporation |
| C. | State Trading Corporation |
| D. | All of the above |
| Answer» C. State Trading Corporation | |
| 78. |
Consular documents include _ _. |
| A. | Certificate of origin |
| B. | Export certificates |
| C. | Uncertified consular invoices |
| D. | Bills of exchange |
| Answer» A. Certificate of origin | |
| 79. |
Trade barriers are often called _ _. |
| A. | Free trade |
| B. | Protection |
| C. | Trade wars |
| D. | Economic integration |
| Answer» B. Protection | |
| 80. |
Redistribution effect is called _ . |
| A. | Revenues effect |
| B. | Consumption effect |
| C. | Productive effect |
| D. | Transfer effect |
| Answer» D. Transfer effect | |
| 81. |
Imposing of tariff, raises domestic prices causing fall in consumption of domestic goods is _ . |
| A. | Protective effect |
| B. | Revenue effect |
| C. | Consumption effect |
| D. | Terms of trade effect |
| Answer» C. Consumption effect | |
| 82. |
_ _ is the World’s largest single market area. |
| A. | European Union |
| B. | India |
| C. | Pakisthan |
| D. | Srilanka |
| Answer» A. European Union | |
| 83. |
At present, European Union consist of _ member countries. |
| A. | 26 |
| B. | 27 |
| C. | 28 |
| D. | None of these above |
| Answer» C. 28 | |
| 84. |
When an economy union involves unifying currency it becomes _ . |
| A. | Customs Union |
| B. | Trade Union |
| C. | Economic and Monetary Union |
| D. | Trade area |
| Answer» C. Economic and Monetary Union | |
| 85. |
_ _ is an official institution of the European Union. |
| A. | European Council |
| B. | European Parliament |
| C. | European Commission |
| D. | European Investment Bank |
| Answer» A. European Council | |
| 86. |
Euro is the official currency for _ _ member countries of European Union. |
| A. | 16 |
| B. | 17 |
| C. | 18 |
| D. | 19 |
| Answer» D. 19 | |
| 87. |
The is the single currency of the European Union. |
| A. | dollar |
| B. | euro |
| C. | yen |
| D. | pound |
| Answer» B. euro | |
| 88. |
_ _ is the second largest currency in the world. |
| A. | Dollar |
| B. | Euro |
| C. | Yen |
| D. | Pound |
| Answer» B. Euro | |
| 89. |
_ _ became an ASEAN dialogue partner in 1995. |
| A. | India |
| B. | Pakisthan |
| C. | Srilanka |
| D. | USA |
| Answer» A. India | |
| 90. |
Look East Policy has now transformed into a _ _. |
| A. | Act European Policy |
| B. | Act East Policy |
| C. | Act West Policy |
| D. | East Asia Policy |
| Answer» B. Act East Policy | |
| 91. |
The referendum for Brexit was held on _ . |
| A. | 2023-06-16 00:00:00 |
| B. | 2023-06-17 00:00:00 |
| C. | 2023-08-17 00:00:00 |
| D. | 2023-06-18 00:00:00 |
| Answer» A. 2023-06-16 00:00:00 | |
| 92. |
ASEAN was formed in . |
| A. | 1947 |
| B. | 1967 |
| C. | 1977 |
| D. | 1987 |
| Answer» A. 1947 | |
| 93. |
_ is a statement of a systematic record of all economic transactions between one country and the rest of the world. |
| A. | Deficit |
| B. | Surplus |
| C. | Balance of payments |
| D. | Budget |
| Answer» C. Balance of payments | |
| 94. |
Pick out the wrong statement. |
| A. | Tariff restricts t |
| B. | Import quotas have a direct effect in reducing imports |
| C. | Voluntary export restraint is an example of tariff barriers. |
| D. | An export subsidy is a government grant given to an export firm |
| Answer» C. Voluntary export restraint is an example of tariff barriers. | |
| 95. |
The consumption effect of tariffs forces consumers to _ _. |
| A. | increase their consumption due to tariffs. |
| B. | pay lower price due to tariffs. |
| C. | reduce their consumption due to tariffs. |
| D. | depend on imports for consumption |
| Answer» C. reduce their consumption due to tariffs. | |
| 96. |
Import embargo is an important retaiatory measure against_ _. |
| A. | dumping |
| B. | exports |
| C. | domestic producer |
| D. | domestic farmers |
| Answer» A. dumping | |
| 97. |
Which of the following Non – Tariff Barriers prevents free movement of capital between countries? |
| A. | preferential government procurement |
| B. | Exchange Controls |
| C. | Domestic subsidie |
| D. | Local content requirement |
| Answer» B. Exchange Controls | |
| 98. |
_ is a measure under which a commodity of a specific volume or value is allowed to be imported in the country. |
| A. | Voluntary Export Restraints |
| B. | Combined duty |
| C. | Import quota |
| D. | Revenue tariff |
| Answer» C. Import quota | |
| 99. |
Which of these are objectives of import quotas? |
| A. | Correcting disequilibrium in the balance of payment |
| B. | To allow dumping |
| C. | To allow speculative activities |
| D. | To allow excess supply in the domestic economy |
| Answer» A. Correcting disequilibrium in the balance of payment | |
| 100. |
In the _ account, only transactions relating to goods are entered. |
| A. | invisible account |
| B. | Capital account |
| C. | trade |
| D. | Current account |
| Answer» C. trade | |
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