Top 50+ Solved International Economy MCQ Questions Answer
Q. If a nation has an open economy it means that the nation:
a. Allows private ownership of capital
b. Has flexible exchange rates
c. Has fixed exchange rates
d. Conducts trade with other countries
Q. Dumping refers to:
a. Reducing tariffs
b. Sale of goods abroad at low a price, below their cost and price in home market
c. Buying goods at low prices abroad and selling at higher prices locally
d. Expensive goods selling for low prices
Q. International trade and domestic trade differ because of:
a. Different government policies
b. Immobility of factors
c. Trade restrictions
d. All of the above
Q. Market in which currencies buy and sell and their prices settle on is called the
a. International bond market
b. International capital market
c. Foreign exchange market
d. Eurocurrency market
Q. International Labor Organization is agency of
a. IBRD
b. UN Security Council
c. International Fund for Agricultural
d. United Nations
Q. Headquarter of International Labor organization is located in
a. Geneva
b. Rome
c. France
d. Tokyo
Q. Which of the following is the main objective behind the establishment of WTO
a. To settle disputes between nations
b. To widen the principle of free trade to sectors such as services and agriculture
c. To cover more areas than GATT
d. All of them
Q. " Term of trade " between two countries refer to a ratio of
a. Export prices to import prices
b. Currency Values
c. Export to imports
d. Balance of trade to balance of payments
Q. WTO comes as the third economic pillar of world-wide dimensions along
a. International Monetary Funds
b. international Economic
c. International Funding Organisation (IFO)
d. International Development Bank (IDB)
Q. Gold standard means
a. Currency of the country is made of
b. Paper currency is not used
c. Currency of the country is freely convertible
d. (A) and (C)
Q. Underlying the application of the monopolistic competition model to
a. increases market size
b. allows companies to charge higher price
c. increases consumer choices
d. decreases the number of firms in an industry