# ICAR NET: Economics MCQs (Practice_Test 13 of 122)

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The three offer curves, viz, a0, a1, a2, of country a cut the offer curve of b at points a, b, c which is equivalent to international terms of trade as shown in the diagram below: From the above, it can be easily deducted that

a reaps all gains from trade at all points, viz a, b, c

a reaps all gains from trade at point c only

both a and β share gains from trade reciprocally

both a and β gain from trade, but a gains more than β

Consider the following statements: Foreign indirect investment includes

global Depository receipts and Foreign Currency Convertible Bonds.

Foreign Institutional investment.

Non-resident External Deposits.

Investment of a Multiplier Company in a domestic power project.

Of these statements

1 and 2 are correct

1 and 3 are correct

1, 2 and r are correct

2, 3 and 4 are correct

Which one of the following pairs is not correctly matches?

Taussig: Barter terms of trade

Prebisch: Deteriorating terms of trade

Marshall: Offier curves

Walras: Dumping conditions

Which one of the following pairs is not correctly matched?

- Special duty
- Duty based on quantity

- Autarchy
- Absence of trade

- Quota
- Non-tariff distortion

- Optimum tariff
- Exchange control

Which one of the following pairs is correctly matched?

- Exchange rate change
- Lowering of the value of a country's currency in terms of other currencies.

- Exchange rate change
- Decline in the value of a country's currency in terms of other currencies.

- Exchange rate change
- Increase in the value of a country's currency in terms of other currencies.

- Exchange rate change
- Increase in a country's foreign exchange reserves

The rate of exchange at equilibrium is one that maintains

the balance between imports and exports

the balance of payments at equilibrium, over a certain period, without any net change in the country's foreign exchange reserves.

the balance of payments all equilibrium with domestic deflationary policy

satisfactory foreign-exchange-reserve at the disposal of the monetary authority

Which of the following items may be included in the current Account part of the bland of payment statement?

merchandise exports.

Foreign tourists expenditure in home country.

Foreign short-term investment in home country.

Banking, insurance and transport services

Income received on investments abroad.

Select the correct answer using the codes given below:

1 alone

1, 2 3 and 4

1, 2, 4 and 5

1, 3 and 4

Meteorologists average the maximum and the minimum readings of temperature instead of averaging the hourly readings, assuming that the variation of temperature is

symmetric over the day

uniform throughout the day

continuous

un-predictable

Which one of the following is true when a variable has two values?

Arithmetic mean of geometric mean and harmonic means is equal to the arithmetic mean of the distribution

Geometric means of arithmetic means and harmonic means is equal to the geometric mean of the distribution

Harmonic me and of arithmetic mean and geometric means is equal to the harmonic mean of the distribution.

All means are equal to each other

Given that l: Literacy rate of the whose society lf: Literacy rate for female population lm: Literacy rate of male population and s: Ratio between female and total population. Which one of the following is correct?

l = lf s + lm (1 − s)

1 f m l = l s + l + s

1 f m l l s l s s s = -- + ± + ____

None of the above

L V Charlier collected data of the stork population in Oslo and the number of babies born in the city in 40 years. He found the correlation coefficient between both to be 0.86. From this it can be inferred that

the correlation is not every high

the correlation is very high

the correlation leads to a mysterious connection between the rate of stork an human population in Norway.

the correlation is spurious

In case of high income inequality, the income distribution is

a symmetric distribution

an U-shaped distribution

an inverted J-shaped distribution

None of the above

Consider the following statements:

Histogram is an area diagram.

Class-frequencies can be interpolated from the histogram.

Of these statements

1 alone is correct

2 alone is correct

1 and 2 are correct

Neither 1 nor 2 is correct

If the price date for 1970 and 1990, and quantity data for 1990 are given, which type of index (taking 1990 as the base year) can be constructed?

Marshall-Edgeworth Index

Fisher Index

Paasche Index

Laspey's Index

The following economists are associated with the ‘exploitation/Dependency theory’

Paul Baran

A. G. Frank

S. Amin

G. Palma

Which one of the following is the correct chronological order of them?

1, 2, 3, 4

2, 1, 3, 4

2, 1, 4, 3

1, 2, 4, 3