Suraj Patel Education
Semester VI
Business Economics
Question bank for University examination 2020
Part 2 Link Click Here
https://www.surajpateleducation.com/2020/12/business-economics-tybcom-mcq-pdf.html
1. Which of these are the limitation of Heckscher Ohlin theory
a) Over simplication
b) Partial equilibrium
c) Both (a) and (b)
d) none of these
2. In Heckscher Ohlin theory if international trade the most important source of difference inrelative community prices between nations is a difference in a factor endowment.
a) Factor Endowments
b)
technology
d) demand conditions
3. Heckscher Ohlin theory of international trade is known as ______ theory of internationa trade.
a) Classical
b) Opportunity cost
c) Modern
d) None of these
4.
According to Heckscher Ohlin theory, product price
depends on ________ .
a) factor intensity
b) better abundance
c) Both (a) and (b)
d) None of these
5.
According to Heckscher Ohlin
theory, the international Trade Tech place due to difference in _______.
a) tractor supply
b)
technology
c) capital formation
d) all of the above
6. Commodity
terms of trade is also known as _______.
b) Net barter terms of trade
c) income terms of trade
d) utility terms of trade
7.
The Ricardo's comparative cost theory is based on
which of the following assumption
b) full employment equilibrium
c) free trade
d) all of these
8.
Which of the following is not the assumption of
Ricardo's comparative cost theory?
a) Labour is perfectly mobile within a country
b) Technology is constant
c) Labour is homogeneous
d)
Two
countries exchanging more than two commodities
9.
Which of these are limitation of
Ricardo's comparative cost theory?
a) one sided theory
b) unrealistic assumption of perfectly mobility
c) restrictive model
d)
all of
these
10. Factor endowment theory of international trade was developed by
a) Adam Smith
b) David Ricardo
c) Heckscher and Ohlin
d) Alfred Marshall
11.
Heckscher Ohlin theory is based on which of the
following assumption
a) two countries
b) two goods
c) two factors
d) all of these
12. The
concept of income terms of great is given by ______.
a) Prof. Taussig
b) Prof. Viner
c) G.S. Dorrance
d) None of above
13. _______
has introduced the concept of single factoral terms of trade.
a) Prof. Viner Jacob
b) Prof. Taussig
c) G.S Dorrance
d) Prof. Ohlin
14. Prof. Viner has introduced the following concepts of terms of trade.
a) single factoral terms of trade
b) real cost terms of trade
c) utility terms of trade
d) all of above
15. _____ refer as an index of the value of exports divided by price index for imports.
a) Gross barter terms of trade
b) income terms of trade
c) Net barter terms of trade
d) utility terms of
trade
16. The rate
at which one country's product exchange for those of the other is referred as
____.
a) terms of trade
b)
internal trade
c) international trade
d) none
of the above
17. Terms of trade expresses the relationship between _____
a) export and import
b) demand and supply
c) export price and import price
d) none of these
18. Types of terms of trade include _______.
a) Net barter terms of trade
b) Gross barter terms of trade
c) income terms of trade
d) all of the above
19. _________ introduced the concept of gross barter terms of trade.
a) Adam Smith
b) Alfred Marshal
c) Taussi
d) David Ricardo
20. Reciprocal
demand is expressed in terms of _______.
a) demand curve b) offer curve
c) supply curve d) all of
the above
21. Commercial
policy is also refer as _____.
a) trade policy
b) international trade policy
22. The objective of commercial policy is / are _______ .
a) increase trade relatio
b) protect domestic market
c) district import of goods
d) All of the above
23. Free trade policy is absence of _____.
a) tariffs
c) exchange contro
b) qoutas
d) all of the above
24. Under
free trade _____ benefit more.
b) agents
c) middleman
d) none of these
25.
Under free trade _____ will be
higher.
a) wages b)
interest
c) rent d) all of the above
26. Free
trade is based on the principle of _______.
b) comparative disadvantage
c) production possibility advantage
d) None of these
27. Which of
the following is not an argument for protectionism ________.
a) to protect infant industries b) to increase the level of imports
c) to protect small industries d) to
improve the balance of payments
28. A tariff is a tax on ______ .
a) domestic goods and services b) foreign goods and services
c) quality of goods d) none
of the above
29. Protectionism ________.
a) increase the quality of imports b)
decrease the government revenue
c) increase the government
earnings from tax d) all of the above
30. Which of
the following is an argument for free trade ______.
a) prevents monopolies
b) unfavourable terms of trade
c) unfavourable balance of payments
d) all of the above
31. The main
objective of trade barriers are ______.
|
|
a) to encourage new industries domestically |
b) to reduce unnecessary imports |
|
|
c) to conserve valuable foreign exchange |
d) all of the above |
|
32. |
________ is a type of tariff barriers. |
|
|
|
a) Embargo |
b) Ad-valorem duties |
|
|
c)
product standard |
d)
consular formalities |
|
33. |
______ is a type of non tariff barriers |
|
|
|
a) Import Quotas |
b) Export Duties |
|
|
c)
Import Duties |
d)
Specific Duties |
34. An
international trading company of the government of India ______.
b) Estate Service Corporation
c) State Trading Corporation
d) all of the above
35. Offer
curve represent ______ demand.
a) horizontal b) vertical
c) reciprocal d) none
of these
36. The offer
curve of the country reveals its offer of _______ against its demand for
imports.
a) price b) demand
c)
exports d) none
of these
37. _______
had put forward the technique of offer curve.
a) Marshall and Edgewort
b) J.S Mill
c) David Ricard
d) None of these
38. According to J.S Mill, equilibrium terms of trade is determined by _____ demand.
a) Market
b) Aggregate
c) Reciprocal
d)
Effective
39. Gains from international trade leads to ______.
a) expansion of market
b) increase in national income
c) world welfare
d) all of these
40. Tariff
barriers restrict import _______.
a)
indirectly b)
directly
c) none of these d) all of
the above
41. _______
create a trade bloc.
a) OPEC b) NAFTA
c) ASEAN d) all of the above
42.
Consular documents include
______.
a) Certificate of origin b) Import
certificates
c) Certified consular invoices d) All of the above
43.
Trade barriers are often called
______.
a) Free trade b) Protection
c) both (a) and (b) d) None
of the above
44.
Redistribution effect is called
______.
a) Revenues effect b)
Consumption effect
c) Productive effect d) Transfer effect
45. Imposing of tariff, raises domestic prices causing fall in consumption of
domestic goods is_______.
a) Protective effect b)
Revenue effect
c)
Consumption effect d) Terms
of trade effect
46. _____ is the world's largest single market area.
a) European Union
b) India
c) Pakista
d) Sri Lanka
47. At
present, European union consist of ________ member countries.
|
a) 26 |
b) 27 |
|
c) 28 |
d) None of the above |
48. _________
occurs when a group of countries agrees to eliminate tariff between themselves.
a) Free trade area
b) preferential trade agreement
c) both a and b
d) none of these
49. When an economy union involves unifying currency it becomes _______.
a) Customs Union
b) Trade Union
c) Economic and Monetary Union
d) all of the above
50. __________
is an official institution of European Union.
a)
European Council b)
European Parliament
c) European commission d)
European Investment Bank