Top 50+ Solved Bus Economics MCQ Questions Answer
Q. International trade increases the welfare of ________________
a. only developed countries
b. only exporting countries
c. all participating countries
d. only importing countries
Q. Ricardian theory assumes that labour is ________________ within the country.
a. inefficient
b. heterogeneous
c. homogeneous
d. sufficient
Q. Income terms of trade indicate increased capacity to ________________.
a. export
b. import
c. profit
d. investment
Q. An offer curve differs from ________________.
a. usual demand curve
b. usual supply curve
c. indifference curve
d. usual demand and supply curve
Q. Utility terms of trade was introduced by ________________.
a. jacob viner
b. frank taussig
c. j. s. mill
d. adam smith
Q. When supply of exports is elastic, a country will have ________________ terms of trade.
a. unfavorable
b. favorable
c. income
d. different
Q. Hecksher-Ohlin theory states that the relative factor prices in two countries are determined by ________________.
a. labour efficiency
b. capital efficiency
c. technological developments
d. differences in factor endowments
Q. ________________ is not an objective of commercial trade policy.
a. to determine the rate of interest
b. to protect domestic industries from foreign competition
c. to preserve foreign exchange reserves
d. to maintain favorable balance of payments
Q. Tariff rate quotas are ________________
a. based on the value of the traded commodity only
b. low tariff rate on an initial quantity of import within the quota limit and very high tariff rate on imports above the initial amount
c. based on the quantity or volume of the quantity only
d. combination of tariffs and quotas
Q. Which of the following is not a NTB?
a. voluntary export restrictions
b. administrative barriers
c. tariff rate quotas
d. local content requirement
Q. A free trade area is a trade bloc where ________________
a. countries agree to have a common unified tariff against non-members
b. countries agree to reduce or eliminate tariff barriers on selected goods imported from other member nations
c. countries agree to reduce or eliminate tariff barriers on all goods imported from other member nations
d. all barriers are eliminated to allow free movement of goods, services, capital and labour
Q. The ________________ was signed to create the EU in 1993.
a. treaty of london
b. treaty of maastricht
c. treaty of lisbon
d. treaty of rome
Q. ________________ refers to the alliance of multiple countries pursuing common goals.
a. single market
b. multilateralism
c. customs union
d. regionalism
Q. WTO was set up on ________________
a. 31st july, 1995
b. 1st january, 2000
c. 1st june, 1985
d. 1st january, 1995