Top 250+ Solved Business Economics MCQ Questions Answer
Q. r1 / w1 < r2 / w2 means
a. Nation 1 is capital abundant
b. Nation 1 is labor abundant
c. Nation 2 is capital abundant
d. Nation 2 has high wages
Q. The rate at which goods are exchangeed between two countries is called
a. Import price
b. Export rate
c. Foreign exchange
d. Terms of trade
Q. 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
Q. Px / Pm is
a. Gros barter terms of trade
b. Net Barter terms oftrade
c. Terms of trade
d. Commodity terms of trade
Q. 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
Q. If import prices rse more than export prices, terms of trade have _
a. improved
b. deteriorated
c. increased
d. advanced
Q. 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
Q. A favourable terms of trade indicates _ imports for given exports
a. more
b. less
c. lower
d. same
Q. 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
Q. A decline in price would increase exports if demand is__
a. inelastic
b. elastic
c. constant
d. fluctuating
Q. _ _ introduced the concept of Gross barter terms of trade
a. Adam Smith
b. Alfred Marshall
c. F W Taussig
d. David Ricardo
Q. 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
Q. 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