Top 80+ Solved Introductory Economics 2 MCQ Questions Answer
Q. A _______________is an upward adjustment in the official exchange rate, which increases thevalue of the currency.
a. devaluation
b. depreciation
c. revaluation
d. appreciation
Q. Which among following is NOT an implication of devaluation?
a. devaluation makes the country's exports relatively less expensive for foreigners.
b. devaluation makes foreign products relatively more expensive for domestic consumers, thus discouraging imports.
c. devaluation help to increase the country's exports
d. may therefore help to reduce the current account surplus.
Q. Which among following is an implication of revaluation?
a. revaluation makes the country's exports relatively more expensive for foreigners.
b. revaluation makes foreign products relatively more expensive for domestic consumers, thus encouraging imports.
c. revaluation help to reduce the country's exports to reduce the current account surplus.
d. all the above
Q. Devaluation leads to
a. increasing the price of imports and stimulating greater demand for domestic products.
b. domestic inflation.
c. rise in domestic interest rates.
d. all the above
Q. PDS Stands for:
a. public distribution system
b. public division system
c. price distribution system
d. all of these
Q. India’s Green revolution was most successful in …………Production:
a. wheat
b. rice
c. maize
d. cotton
Q. The worst form of land tenurs system was…………………….
a. zamindary
b. riotwary
c. mahalwari
d. malguzari
Q. Import quota is :
a. tariff
b. non-tariff trade barrier
c. concession
d. international obligation
Q. Balance of payments must always balance because:
a. trade deficit is cancelled by invisible credits
b. import always equals exports
c. of an accounting connection
d. what a country gets, it must either pay or save
Q. Trade Policy measures for correction of balance of payments disequilibrium include of exportpromotion:
a. export promotion
b. import control
c. both a & b
d. import substitution
Q. In calculating India’s balance of payments position, we must:
a. omit invisible items
b. omit exports and imports of gold
c. include expenditure by foreign tourists as imports
d. include long term loans abroad as debit