Top 50+ Solved International Economy MCQ Questions Answer
Q. Which of the following trade policies limits specified quantity of goods to be
a. Quota
b. Import tariff
c. Specific tariff
d. All of the above
Q. In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ in
a. Military capabilities
b. labour productivities
c. relative availabilities of factors of production
d. Taste
Q. Since 1980s which of the following changes has happened in the world trade?
a. Share of "north-north" trade has decreased in total merchandise exports
b. Share of "south-- south" trade has increased in total merchandise eports
c. share of agriculture produce has decreased in total merchandise exports
d. all of the above
Q. According to Ricardo, a country will have a comparative advantage in:
a. Industries in which there are neither imports nor exports
b. import competiting industrie
c. Industries that sell to domestic and foreign buyers
d. industries that sell to only foreign buyers
Q. If a country has a linear (downward sloping) production possibilities
a. constant opportunity costs
b. decreasing opportunity costs
c. first increasing and then decreasing opportunity
d. increasing opportunity costs.
Q. Wassily Leontief used an input-output table in order to test the
a. Ricardian theory of comparative
b. Heckscher Ohlin theory of comparative
c. Linder theory of overlapping demand
d. all of the above
Q. Which of the following is one of the conclusions of New Trade Theory
a. Countries as a while must gain from trade
b. A country can only hurt itself by using government policies
c. Consumers gain from the increased variety of goods that trade makes
d. A country may export a good or import it, but not both
Q. .A tax of 20 cents per unit of imported cheese would be an example of a (an):
a. Compound tariff
b. Effective tariff
c. Ad valorem tariff
d. Specific tariff
Q. According to the argument for protection, tariffs can shield new industries from import competition until they have grown strong and efficient enough to withstand the competition by foreign producers.
a. Scientific tariff argument
b. Infant industry argument
c. beggar they neighbour argument
d. foreign dumping argument
Q. Ad valorem tariffs are collected as
a. fixed amounts of money per unit traded
b. a percentage of the price of the product
c. a percentage of the quantity of imports
d. all of the above
Q. Which of the following does not form part of current account under balance of
a. Export and import of goods
b. Export and import of services
c. Income receipts and payments
d. Capital receipts and payments
Q. Gifts and Relief are
a. Merchandise Payment
b. Service Payment
c. Factory Income
d. Transfer payment
Q. A country is said to be in debt trap if
a. It has to abide by the conditionality imposed by the International Monetary Fund
b. It is required to borrow money to make interest payments on outstanding loans
c. It has been refused loans or aid by creditors
d. The World Bank charges a very high rate of interest on outstanding as well as new loans
Q. The effective rate of protection
a. distinguishes between tariffs that are effective and those that are ineffective
b. is the minimum level at which a tariff becomes effective in limiting imports
c. shows how effective a tariff is in raising revenue for the government
d. shows the increase in value added for domestic production that a particular tariff structure makes possible, in percentage terms
Q. Which type of tariff is expressly forbidden by the U.S. Constitution?
a. Import tariff
b. Export tariff
c. Specific tariff
d. Ad valorem tariff