Top 250+ Solved Business Economics MCQ Questions Answer
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
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
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
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
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
Q. According to J S Mill, equilibrium terms of trade is determined by __ demand
a. Market
b. Aggregate
c. Effective
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
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
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
Q. Reciprocal demand is
a. Mutual supply
b. Ratio of volume of
c. Ratio of earnings f
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
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
Q. The classical economist Adam Smith was a champion of _ .
a. Protectionism
b. Free Trade
c. Trade Wars
d. Intra indstry 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
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