Top 250+ Solved International Economics MCQ Questions Answer
Q. Distinguish between autonomous and accommodating items in the balance of payments.
a. all transactions in the current and capital account are called automatic transactions. accommodating items are transactions that come under the official reserve account.
b. transactions are said to be autonomous if their value is determined independently of the balance of payments. accommodating items are determined by the net consequences of the autonomous items.
c. they take place for business or private motive. accommodating items are required to balance international transactions.
d. all the above
Q. Which among the following sentence is NOT true
a. items are said to be above the line (autonomous) or below the line (accommodating).
b. the sum of the accommodating and autonomous items must be zero, since all entries in the balance of payment s accounts must come under one of the tw3o headings.
c. a surplus in a nation’s balance of payments is given by a net debit balance in the nation’s autonomous items and a deficit is given by a net credit balance.
d. b o p is a systematic statistical statement or record of the character and dimensions of the country’s economic relationship with the rest of the worl
Q. Which among the following is NOT a measure to correct the balance of paymentdisequilibrium?
a. devaluation
b. deflation
c. revaluation
d. non of the above
Q. Tariffs are
a. taxes imposed on imports.
b. taxes imposed on the consumption of domestic goods
c. taxes imposed on the consumption of imported services.
d. taxes imposed on the consumption of domestic services.
Q. When tariffs are imposed
a. the prices of imports would increase to the extent of tariff.
b. the prices of imports would decrease to the extent of tariff.
c. the prices of imports would increase by a multiplier of tariff
d. the prices of imports would decrease by a multiplier of tariff
Q. What are the major drawbacks of tariffs
a. they are restrictions to free trade
b. tariffs seek to establish equilibrium without removing the root causes of disequilibrium.
c. tariffs bring equilibrium by reducing the volume of trade.
d. all the above
Q. Protectionist trade policy is associated with
a. mercantilists
b. heckscher and ohlin
c. modern trade theory
d. wto
Q. Modern trade theory is developed by
a. adam smith
b. heckscher and ohlin
c. david recardo
d. karl marx
Q. According to ________ even though a country is absolutely disadvantageous inboth commodities there is still possibility for trade
a. adam smith
b. heckscher and ohlin
c. david recardo
d. karl marx
Q. Principles of Political Economy and Taxation is the book of
a. adam smith
b. heckscher and ohlin
c. david recardo
d. karl marx
Q. Who reoriented comparative advantage theory?
a. adam smith
b. j m keynes
c. haberler
d. karl marx
Q. Haberler reconstituted comparative advantage theory on the basis of ____
a. opportunity cost theory
b. labour theory of value
c. money
d. non of the above
Q. Factor endowment theory is also known as
a. heckcher ohlin theory
b. limit pricing theory
c. labour theory of value
d. opportunity cost theory
Q. The accounting system used in BOP
a. double entry book keeping system
b. the balance of payment system
c. system of national accounting
d. none of the above
Q. PPP theory is associated with the determination of _______
a. exchange rate
b. money value
c. tariffs
d. quatas