T.Y B.COM
SEMESTER - 5
MID SEMESTER EXAMINATION
INTERNATIONAL TRADE
(IT)
MCQS --> 2011-2012
1) According to Leontief, U.S.A exports....
a) Capital intensive goods
b) Labor intensive goods
c) Both (a) & (b)
d) None of the above
2) Factor reversal matters when...
a) Factor endowments are similar
b) Factor endowments differ significantly
c) Factor price are same
d) None of the above
3) India should export according to H.O. theory...
a) Capital intensive goods
b) Labor intensive goods
c) Both (a) & (b)
d) None of the above
4) USA should import according to H.O. theory...
a) Labor intensive goods
b) Capital intensive goods
c) Both (a) & (b)
d) None of the above
5) Leontief tested his hypothesis with the help of...
a) Cost curve
b) Supply curve
c) Demand curve
d) Input - output table
6) Imposition of tariff leads to...
a) Decrease in price of imports
b) Decrease in price of exports
c) Increase in price of exports
d) Increase in price of imports
7) Export promotion involves encourage merits of...
a) Luxury items
b) Consumer items
c) Export products
d) Products which are completing with imports
8) An offer curve can be drawn from...
a) Price consumption curve
b) ISO - quant curve
c) Production possibility curve of a country
d) None of the above
9) The opportunity cost theory assumes that...
a) Labor is homogeneous
b) Labor is the only factor of production
c) The price or cost of a commodity can be inferred from its labor content
d) None its labor content
10) Which of the following is not true if a country has ex - change control?
a) Goods which on the basis of comparative advantage should be imported are frequently product domestically
b) Black market tend to prosper
c) Foreign exchange usually sells at different rate for different uses
d) The order of priority for imports is determined strict by supply and demand
11) The achievement of gains from trade requires...
a) Comparative advantage
b) Absolute advantage
c) Net advantage
d) Both (a) & (b)
12) Absolute cost advantage theory was propounded by...
a) Ricardo
b) Marshall
c) Adam smith
d) Malthus
13) Case of trade according to classical economists was...
a) Difference in productivity of capital
b) Differing labor productivity
c) Both (a) & (b)
d) None of the above
14) The shape of offer curve will be...
a) Non linear
b) Linear
c) Straight line
d) None of the above
15) In case of inversing marginal opportunity cost the shape of production possibilities curve will be...
a) Concave to origin
b) Convex to origin
c) Straight line
d) Horizontal line
16) Net barter terms of trade is...
a) Px / PmX100
b) Px / Pm
c) Px X Pm
d) None of the above
17) Assumption of Heckscher - online theory are...
a) Perfect competition
b) Perfect factor mobility with country
c) Immobility of factors outside the country
d) All of the above
18) F list advocated...
a) Protection to infant industry
b) Free trade
c) Both (a) & (b)
d) None of the above
19) Tariff barriers tend to...
a) Reduce the efficiency of world production
b) Reduce the volume of world production
c) Raise prices of tariff - imposing countries
d) All of the above
20) Which of the following would not be trades in the foreign exchange market?
a) Drafts
b) Time deposits
c) US dollars
d) British pounds
21) Organization, which is promoting free trade is...
a) World trade Organization
b) World bank
c) United nation development programme
d) International monetary fund
22) Protection will benefit....
a) Scarce factors of production
b) Abundant factor of production
c) Both (a) & (b)
d) None of the above
23) The improvement in the value of gross barter terms of trade is expressed by...
a) Decrease in the export quantity index
b) Increase in the import quantity index
c) Decrease in the import quantity index
d) None of the above
24) The value of the commodity terms of trade index remains unchanged in case of...
a) The export price index is greater than import price index
b) The change in export price index and the import price in the same percentage
c) The export price index is lower than import price index
d) None of the above
25) When the country's net and gross barter terms of trade are equal...
a) Balance of trade is in equilibrium
b) Balance of payment in equilibrium
c) Both (a) & (b)
d) None of the above
26) As a result of imposition of tariff, a nation's offer curve will...
a) Shift towards axis measuring imports
b) Remain unaffected
c) Shift towards axis measuring exports
d) None of the above
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