McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
Chapters
| 151. |
The ratio of price of export to price of import is called |
| A. | Import price |
| B. | Export rate |
| C. | Foreign exchange |
| D. | Terms of trade |
| Answer» D. Terms of trade | |
| 152. |
Px / Pm is |
| A. | Gros barter terms of trade |
| B. | Net Barter terms oftrade |
| C. | Terms of trade |
| D. | Commodity terms of trade |
| Answer» C. Terms of trade | |
| 153. |
When many commodities are traded terms of trade is expresed as _ of its export pricr to import price |
| A. | sum |
| B. | multiple |
| C. | index ratio |
| D. | index |
| Answer» C. index ratio | |
| 154. |
If import prices rse more than export prices, terms of trade have _ |
| A. | improved |
| B. | deteriorated |
| C. | increased |
| D. | advanced |
| Answer» B. deteriorated | |
| 155. |
The limitations of Commodty terms of trade gave rise to _ |
| A. | Net barter terms of trade |
| B. | gross barter term of trade |
| C. | single factoral terms of trade |
| D. | double fctoral terms of trade |
| Answer» B. gross barter term of trade | |
| 156. |
A favourable terms of trade indicates _ imports for given exports |
| A. | more |
| B. | less |
| C. | lower |
| D. | same |
| Answer» A. more | |
| 157. |
is equally important as price of exports |
| A. | Income from exports |
| B. | Production level of exports |
| C. | amount of labor fromexports |
| D. | raw materials used for exports |
| Answer» A. Income from exports | |
| 158. |
A decline in price would increase exports if demand is__ |
| A. | inelastic |
| B. | elastic |
| C. | constant |
| D. | fluctuating |
| Answer» B. elastic | |
| 159. |
_ _ introduced the concept of Gross barter terms of trade |
| A. | Adam Smith |
| B. | Alfred Marshall |
| C. | F W Taussig |
| D. | David Ricardo |
| Answer» C. F W Taussig | |
| 160. |
Single factoral terms of trade take in to account |
| A. | Export and import prices |
| B. | Changes in efficiency of factors producing export goods |
| C. | Changes in demand for imports |
| D. | Changes in demand for exports |
| Answer» B. Changes in efficiency of factors producing export goods | |
| 161. |
Two countries can gain from foreign trade if |
| A. | Cost ratios are different |
| B. | Price ratios are different |
| C. | Both cost ratios and price ratios are different |
| D. | Tarifs are different |
| Answer» C. Both cost ratios and price ratios are different | |
| 162. |
J.S.Mill brought in _ factor to explain termsof trade |
| A. | cost |
| B. | demand |
| C. | supply |
| D. | quality |
| Answer» B. demand | |
| 163. |
Reciprocal demand is |
| A. | Mutual demand of two countries to each other’s goods |
| B. | Mutual supply |
| C. | price of export and import |
| D. | Investment |
| Answer» A. Mutual demand of two countries to each other’s goods | |
| 164. |
The developing Countries it is argued usually |
| A. | Enjoy Favourable terms of trade |
| B. | Suffers from adverse terms of trade |
| C. | have better income terms of trade |
| D. | have better bargaining power |
| Answer» B. Suffers from adverse terms of trade | |
| 165. |
Comparative advantage occurs when ……..than other country . |
| A. | A country has more population |
| B. | A country can produce more goods |
| C. | A country has a lower opportunity cost in the production of a good |
| D. | A country has more product lines |
| Answer» C. A country has a lower opportunity cost in the production of a good | |
| 166. |
A tariff------ |
| A. | Increases the volume of trade |
| B. | Reduces the volume of trade |
| C. | Has no effect on the volume of trade |
| D. | encourages foreign goods |
| Answer» B. Reduces the volume of trade | |
| 167. |
Terms of trade of less developed countries are generally unfavourable because |
| A. | They export primary goods |
| B. | They export capital goods |
| C. | They export few goods |
| D. | They import few goods |
| Answer» A. They export primary goods | |
| 168. |
According to J S Mill, equilibrium terms of trade is determined by __ demand |
| A. | Market |
| B. | Aggregate |
| C. | Effective |
| D. | Reciprocal |
| Answer» D. Reciprocal | |
| 169. |
Marshall and Edgeworth introduced a geometrical device to explain the gains from trade which is known as |
| A. | Indifference cur |
| B. | Offer curve |
| C. | Isoquant |
| D. | Demand curve |
| Answer» B. Offer curve | |
| 170. |
The concept of offer curves is associated with the names of |
| A. | David Ricardo |
| B. | J S Mill and Alfred |
| C. | Alfred Marshall an |
| D. | Edgeworth and Pareto |
| Answer» C. Alfred Marshall an | |
| 171. |
The offer curve of a country is based on |
| A. | Relative prices |
| B. | Price of exports |
| C. | Price of imports |
| D. | Volume of exports |
| Answer» A. Relative prices | |
| 172. |
Reciprocal demand is |
| A. | Mutual supply |
| B. | Ratio of volume of |
| C. | Ratio of earnings f |
| D. | Mutual demand of tw |
| Answer» D. Mutual demand of tw | |
| 173. |
In a free world in which no restrictions exist, international trade will lead to |
| A. | Reduced real li |
| B. | Reduced efficiency |
| C. | Reduced real GDP |
| D. | Increased efficiency |
| Answer» D. Increased efficiency | |
| 174. |
A commercial policy is a government policy related to _. |
| A. | Commercial transactions of private companies |
| B. | Economic transactions across international borders |
| C. | Commercial transactions of developed countries |
| D. | Taxes |
| Answer» B. Economic transactions across international borders | |
| 175. |
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 | |
| 176. |
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 | |
| 177. |
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 | |
| 178. |
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. | |
| 179. |
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. | |
| 180. |
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 | |
| 181. |
_ 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 | |
| 182. |
The European Economic Community (EEC) was founded in 1957 under the treaty of _. |
| A. | Paris |
| B. | Rome |
| C. | Washington |
| D. | Veraiiles |
| Answer» B. Rome | |
| 183. |
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. | |
| 184. |
European union was initially formed with _ European countries. |
| A. | 27 |
| B. | 28 |
| C. | 6 |
| D. | 5 |
| Answer» C. 6 | |
| 185. |
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 | |
| 186. |
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 | |
| 187. |
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 | |
| 188. |
ASEAN was formed with the signing of _. |
| A. | European declaration |
| B. | American declaration |
| C. | Asean declaration |
| D. | Bangkok declaration |
| Answer» D. Bangkok declaration | |
| 189. |
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 | |
| 190. |
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 | |
| 191. |
Under free trade _ benefit more. |
| A. | consumer |
| B. | agents |
| C. | middlemen |
| D. | traders |
| Answer» A. consumer | |
| 192. |
Under free trade __ will be higher. |
| A. | wages |
| B. | trade wars |
| C. | civil wars |
| D. | restrictions |
| Answer» A. wages | |
| 193. |
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 | |
| 194. |
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 | |
| 195. |
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 | |
| 196. |
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 | |
| 197. |
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 | |
| 198. |
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 | |
| 199. |
_ is a type of tariff barriers. |
| A. | Embargo |
| B. | Ad–valorem duties |
| C. | Product standard |
| D. | Consular Formalities |
| Answer» B. Ad–valorem duties | |
| 200. |
_ _ is a type of non – tariff barriers. |
| A. | Import Quotas |
| B. | Export duties |
| C. | Import Duties |
| D. | Specific Duties |
| Answer» A. Import Quotas | |
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