NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc.: Economics MCQs (Practice_Test 118 of 122)
Doorsteptutor material for competitive exams is prepared by world's top subject experts: get questions, notes, tests, video lectures and more- for all subjects of your exam.
- an optimum tariff
- improves the terms of trade
- keeps the terms of trade constant
- lowers the terms of trade
- reduces the country՚s welfare level
- For the Heckscher-Ohlin theory of trace to be valid, the relative factor endowments of two countries should be
- close to each other
- as divergent as possible
- identical
- of no concern
- Which one of the following statements is NOT correct?
- Trade between two countries can take place when their supply and demand conditions are identical
- trade between two countries can take place with different supply conditions and similar demand conditions
- Trade between two countries an take place will identical supply conditions and dissimilar demand conditions
- Trade between two countries can take place with difference supply and demand conditions.
- If the price elasticity of demand for exports is zero, then exports in local currency will
- be the same after devaluation
- fall after devaluation
- substantially increase after devaluation
- partially increase after devaluation
- Customs union always leads to
- trade diversion alone
- trade creation alone
- neither trade diversion nor trade creation
- An import tariff in a labour surplus economy distributes income in favour of
- landlords
- wage eamers
- owners of capital and skills
- Government
- Consider the following assumptions:
- Perfect competition
- Perfect mobility of factors between countries
- Constant returns to scale
- Which of the above assumptions are associated with Ricardo՚s Theory of
- Comparative Costs?
- 1,2 and 3
- 1 and 2
- 1 and 3
- 2 and 3
- Comparative Costs?
- Which of the above assumptions are associated with Recardo՚s offer curves of two countries, H and F: The diagram indicates that
- H is a large country
- F is a large country
- both H and F are large countries
- Both H and F are small countries
- Which one of the following pairs is NOT correctly matched?
- Match Item 1: WTO
- Match Item 2: Generally forbids the use of quantitative restrictions in trade
- Match Item 1: IMF
- Match Item 2: Provides finance to correct disequilibrium in balance of payments.
- Match Item 1: SAARC
- Match Item 2: Promotes trade among south Asian countries
- Match Item 1: ASEAN
- Match Item 2: Economic organization of all
- Asian countries
- The assumption of non-factor intensity reversal used in proving the Heckscher-Ohlin theorem is
- necessary
- sufficient
- necessary and sufficient
- neither necessary nor sufficient
- Consider the following statements: Foreign Portfolio Investment in India means
- investment by a foreign firm to start a subsidiary
- investment by a foreign firm to take over an existing firm
- foreign investment in shares
- foreign investment in bonds
- the automatic borrowing rights of a member f IMF are determined by
- the seriousness of its balance of payments disequlibrium
- its subscribed quota in the fund
- the size of its holdings of reserve currencies
- the value of its currency in terms of gold
- Consider the following statements: As per the Trade Related Investment Measures (TRIMs)
- all restrictions on foreign capital companies are to be scrapped
- no restrictions will be imposed on any area of investment
- imports of raw materials are to be allowed freely
- export of part of the output will be mandatory
- Which of the above statements are correct?
- The utilisation of disguised unemployment as a source of savings potential in underdeveloped countries was suggested by
- R Nurkse
- P Baran
- R Harrod
- W W Rostow
- Which one of the following pairs is NOT correctly matched
- Match Item 1: Rolling plan for developing countries
- Match Item 2: Kaldor
- Match Item 1: Economic determinism
- Match Item 2: Marx
- Match Item 1: Balanced growth theory
- Match Item 2: Nurkse
- Match Item 1: Development with unlimited surplus of labour
- Match Item 2: Lewis