Top 250+ Solved Business Economics MCQ Questions Answer

From 226 to 240 of 288

Q. Reciprocal demand is

a. Mutual demand of two countriesto each other’s goods

b. Mutual supply

c. price of export and import

d. Investment

  • a. Mutual demand of two countriesto each other’s goods

Q. 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

  • b. Suffers from adverse terms of trade

Q. 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

  • c. A country has a lower opportunity cost in the production of a good

Q. 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

  • b. Reduces the volume of trade

Q. 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

  • a. They export primary goods

Q. According to J S Mill, equilibrium terms of trade is determined by __ demand

a. Market

b. Aggregate

c. Effective

d. Reciprocal

  • d. Reciprocal

Q. 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

  • b. Offer curve

Q. 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

  • c. Alfred Marshall an

Q. The offer curve of a country is based on

a. Relative prices

b. Price of exports

c. Price of imports

d. Volume of exports

  • a. Relative prices

Q. Reciprocal demand is

a. Mutual supply

b. Ratio of volume of

c. Ratio of earnings f

d. Mutual demand of tw

  • d. Mutual demand of tw

Q. 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

  • d. Increased efficiency

Q. 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

  • b. Economic transactions across international borders

Q. The classical economist Adam Smith was a champion of _ .

a. Protectionism

b. Free Trade

c. Trade Wars

d. Intra indstry trade

  • b. Free Trade

Q. The origin of protectionist policy can be traced back to _ __.

a. Free trade era

b. Mercantilists days

c. Globalisation period

d. Brettonwoods system

  • b. Mercantilists days

Q. 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

  • b. For enabling competitive efficiency of industries
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