MCQOPTIONS
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MCQOPTIONS
This section includes 200 Mcqs, each offering curated multiple-choice questions to sharpen your Economics (CBCS) knowledge and support exam preparation. Choose a topic below to get started.
| 101. |
Tariff can be levied upon |
| A. | Export only |
| B. | Import only |
| C. | Both exports and imports |
| D. | Partly exports partly imports |
| Answer» D. Partly exports partly imports | |
| 102. |
Gold imports had increased during 1992-99 due the repeal of the Gold Control Order in |
| A. | 1990 |
| B. | 1991 |
| C. | 1992 |
| D. | 1993 |
| Answer» C. 1992 | |
| 103. |
The ratio between the price of a country s export goods to its import goods is called |
| A. | Income terms of trade |
| B. | Gross barter terms of trade |
| C. | Real cost terms of trade |
| D. | Commodity or net barter terms of trade |
| Answer» E. | |
| 104. |
According to Exports data during 2011-12 (April-June), country with the largest importer of Indian goods was |
| A. | UAE |
| B. | China |
| C. | Indonesia |
| D. | Europe |
| Answer» B. China | |
| 105. |
Which of the following items is not included in the invisible items of balance of payments? |
| A. | Shipping |
| B. | Insurance |
| C. | Export and import of goods |
| D. | None of the above |
| Answer» D. None of the above | |
| 106. |
Specific tariffs are assessed |
| A. | On the value of product |
| B. | On the basis of subsidies |
| C. | On the basis of physical weight |
| D. | On the basis rate fixed by the government |
| Answer» D. On the basis rate fixed by the government | |
| 107. |
If a country has fundamental deficit in in the balance of payments, it should resort to |
| A. | Exchange control |
| B. | Devaluation of its currency |
| C. | Inflation |
| D. | Loans |
| Answer» C. Inflation | |
| 108. |
Effects of tariffs included |
| A. | Income effect |
| B. | Effect on demand |
| C. | Effect on supply |
| D. | All of the above |
| Answer» B. Effect on demand | |
| 109. |
High tariffs have the effect of restricting |
| A. | The volume of international trade |
| B. | The price of goods |
| C. | The quantity of goods |
| D. | All of the above |
| Answer» B. The price of goods | |
| 110. |
Ad valorem tariffs are |
| A. | Duties levied per physical unit of the commodity imported |
| B. | Duties levied as fixed percentage of the value of the imported commodity |
| C. | Duties which tend to vary with the prices of the imported commodities |
| D. | None of the above |
| Answer» C. Duties which tend to vary with the prices of the imported commodities | |
| 111. |
Which of the following is/are not the policy measure/measures to correct deficit in Balance of Payments? |
| A. | Fiscal and Monetary |
| B. | Structural reforms |
| C. | External financing |
| D. | Issuing new currency |
| Answer» E. | |
| 112. |
On the basis of origin and destination of goods, tariff may be classified into |
| A. | Specific duties, ad valorem duties and compound duties |
| B. | Single-column tariff, double-column tariff and triple column tariff |
| C. | Export duties, import duties and transit duties |
| D. | All of the above |
| Answer» C. Export duties, import duties and transit duties | |
| 113. |
On the basis of retaliation, tariffs can be of the types of |
| A. | Revenue and protective tariffs |
| B. | Retaliatory and countervailing tariffs |
| C. | Non-discriminatory and discriminatory tariffs |
| D. | Double column or multiple tariffs |
| Answer» C. Non-discriminatory and discriminatory tariffs | |
| 114. |
A tariff results in an improvement in terms of trade on one hand and on the other hand, increases the |
| A. | Demand of the commodity |
| B. | Price of the commodity |
| C. | Level of welfare |
| D. | Gains from trade |
| Answer» D. Gains from trade | |
| 115. |
Under the redistribution effect of tariff, the loss of consumer s surplus is neither transferable to the produces nor to the government and is called by Kindleberger as the |
| A. | Deadweight loss of the tariff |
| B. | Cost of the tariff |
| C. | Both (a) and (b |
| D. | All of the above |
| Answer» E. | |
| 116. |
As per the latest press release by the RBI dated 14th June, 2019, exports in April 2019 registered a positive growth of |
| A. | 2.84% |
| B. | 3.84 % |
| C. | 4.84 % |
| D. | 5.84% |
| Answer» B. 3.84 % | |
| 117. |
The huge trade deficit India experienced during the 1980s was mainly due to |
| A. | Slow growth of exports and fast rise in imports |
| B. | Slow growth of imports and fast rise of exports |
| C. | Increased in defence expenditure |
| D. | Inflation |
| Answer» B. Slow growth of imports and fast rise of exports | |
| 118. |
As per the latest press release by the RBI dated 14th June, 2019, imports in April 2019 registered a positive growth of |
| A. | 2.46 % |
| B. | 3.46 % |
| C. | 4.46 % |
| D. | 5.46 % |
| Answer» D. 5.46 % | |
| 119. |
Which of the following is an export item/items that shows a positive growth in May 2019? |
| A. | Fertilizers |
| B. | Vegetable oils |
| C. | Transport equipment |
| D. | Drugs & Pharmaceutical |
| Answer» E. | |
| 120. |
The slow growth of exports during 2004-2007 was the result of |
| A. | The depreciation of rupee against dollar |
| B. | The appreciation of rupee against dollar |
| C. | Increased in the general price level |
| D. | None of the above |
| Answer» C. Increased in the general price level | |
| 121. |
The principal reasons for the sluggishness of exports during 1980s was |
| A. | Domestic supply constraints |
| B. | Domestic demand constraints |
| C. | International supply constraints |
| D. | International demand constraints |
| Answer» B. Domestic demand constraints | |
| 122. |
During the period of the first Five-Year Plan, India s imports mainly consisted of |
| A. | Silver |
| B. | Foodgrains |
| C. | Pharmaceuticals |
| D. | None of the above |
| Answer» C. Pharmaceuticals | |
| 123. |
A single factoral terms of trade shows that a country s factoral terms of trade improve as productivity |
| A. | Remains constant in its export industries |
| B. | Improves in its export industries |
| C. | Deteriorates in its export industries |
| D. | Increases in its import industries |
| Answer» C. Deteriorates in its export industries | |
| 124. |
The net terms of trade refers to |
| A. | The ratio of unit value index of imports to unit value index of imports. |
| B. | The ratio of unit value of a commodity to per capita income |
| C. | The ratio of unit value of a commodity of domestic country to the unit value of a commodity of foreign countries |
| D. | The ratio of unit value of domestic exports to the unit value of foreign exports |
| Answer» B. The ratio of unit value of a commodity to per capita income | |
| 125. |
A trade policy without tariffs and other quantitative restrictions blocking the movement of goods between countries is |
| A. | Import policy |
| B. | Export policy |
| C. | Free trade policy |
| D. | Exim policy |
| Answer» D. Exim policy | |
| 126. |
Prof. Ronald Findlay modified Ricardo s measure of gains from trade using |
| A. | A straight line |
| B. | Balance of payments |
| C. | The community indifference curve |
| D. | Short-term and long-term lendings and borrowings |
| Answer» D. Short-term and long-term lendings and borrowings | |
| 127. |
Import quotas include |
| A. | Ad valorem duty |
| B. | Tariff or custom quota |
| C. | Specific duty |
| D. | Compound duty |
| Answer» C. Specific duty | |
| 128. |
Which of the following is not included in the effects of quotas |
| A. | Price effect |
| B. | Consumption effect |
| C. | Income effect |
| D. | Protective effect |
| Answer» D. Protective effect | |
| 129. |
The objective of import quotas include |
| A. | To protect domestic industries from foreign competition by restricting imports |
| B. | To stabilize and maintain the external price level by regulating exports |
| C. | To correct adverse balance of payments restricting exports |
| D. | None of the above |
| Answer» B. To stabilize and maintain the external price level by regulating exports | |
| 130. |
The system devised to administer the types of quotas is |
| A. | Tariff quota |
| B. | Import licensing |
| C. | Export duties |
| D. | None of the above |
| Answer» C. Export duties | |
| 131. |
There is an improvement in the welfare of country only when the |
| A. | Positive effect of a tariff is lesser than its negative effect |
| B. | Positive effect is larger than its negative effect |
| C. | Positive effect of a tariff is equal to its negative effect |
| D. | None of the above |
| Answer» C. Positive effect of a tariff is equal to its negative effect | |
| 132. |
Which of the following an import item/items that shows a negative growth in May 2019? |
| A. | Vegetable oils |
| B. | Drugs & Pharmaceutical |
| C. | Engineering goods |
| D. | Electronic goods |
| Answer» B. Drugs & Pharmaceutical | |
| 133. |
The types of terms of trade does not include |
| A. | Utility terms of trade |
| B. | Real cost terms of trade |
| C. | Productive capacity terms of trade |
| D. | Double factoral terms of trade |
| Answer» D. Double factoral terms of trade | |
| 134. |
During the period of 1950-51, the traditional exports like tea, jute and cotton textiles formed |
| A. | 45 per cent of the total exports |
| B. | 50 per cent of the total exports |
| C. | 55 per cent of the total exports |
| D. | 60 per cent of the total exports |
| Answer» D. 60 per cent of the total exports | |
| 135. |
India s foreign trade policy during the late 1950s was often termed as |
| A. | Import pessimism |
| B. | Export pessimism |
| C. | Import optimism |
| D. | Export optimism |
| Answer» C. Import optimism | |
| 136. |
The classical theorists believed that the gains from trade resulted from |
| A. | Stabilisation of price level |
| B. | Increased production and specialization |
| C. | Exchange and specialization |
| D. | Perfect competition |
| Answer» C. Exchange and specialization | |
| 137. |
In world markets, the actual gain is always less than the potential gain since there is always |
| A. | Perfect completion |
| B. | Imperfect completion |
| C. | Stability |
| D. | None of the above |
| Answer» C. Stability | |
| 138. |
The production possibility curve represents |
| A. | The supply side |
| B. | The demand side |
| C. | Combination of four commodities |
| D. | None of the above |
| Answer» B. The demand side | |
| 139. |
The overall exports of India (merchandise and service) during April-May 2019-20 are estimated to have a positive growth over the same period last year is |
| A. | 2.32 % |
| B. | 3.32% |
| C. | 4.32% |
| D. | 5.32% |
| Answer» D. 5.32% | |
| 140. |
The concept of single factoral terms of trade was developed by |
| A. | Jacob Viner |
| B. | G.S. Dorrance |
| C. | G.Haberler |
| D. | F.W. Taussig |
| Answer» B. G.S. Dorrance | |
| 141. |
The terms of trade of a country improves when |
| A. | The import price of a country relatively rises to its export prices |
| B. | The import price of a country is the same with its export prices |
| C. | The export price of a country does not rise in relation to its import prices |
| D. | The export price of a country relatively rises to its import prices |
| Answer» E. | |
| 142. |
According to the absolute differences in cost theory of trade |
| A. | No country should specialize in the production of any commodity |
| B. | Every country should specialize in the production of commodities which it can produce more cheaply than other countries and exchange it for commodities which are cheaper in other countries |
| C. | Every country should specialize in production of goods which it can produce at higher cost than other countries and exchange it for commodities which are costlier than other countries |
| D. | All of the above |
| Answer» C. Every country should specialize in production of goods which it can produce at higher cost than other countries and exchange it for commodities which are costlier than other countries | |
| 143. |
The gains from trade refers to |
| A. | A duty levied on goods when they enter and leave a country s national boundary |
| B. | A tariff that maximizes a country s welfare |
| C. | Net benefits or increases in goods that a country gets by trading with other countries |
| D. | The demand and supply curve of a country |
| Answer» D. The demand and supply curve of a country | |
| 144. |
The various methods of measuring gains from trade does not include |
| A. | Haberler s approach |
| B. | Ricardo s-Malthus approach |
| C. | Modern approach |
| D. | Mill s approach |
| Answer» B. Ricardo s-Malthus approach | |
| 145. |
The concept of commodity or net barter terms of trade has been used by economists to measure |
| A. | The gains from domestic trade |
| B. | The gains from internal trade |
| C. | The gains from international trade |
| D. | The gains from prices |
| Answer» D. The gains from prices | |
| 146. |
Relative factor abundance in H-O theory of trade can be defined in terms of |
| A. | The physical & price criterion of relative factor abundance(and the price criterion of relative factor abundance |
| B. | Perfect mobility of factors of production |
| C. | Production governed by increasing returns to scale |
| D. | Similar factor intensities |
| Answer» D. Similar factor intensities | |
| 147. |
According to Jacob Viner, the classical economists measured the gains from trade in terms of |
| A. | Increase in national income |
| B. | Difference in comparative costs |
| C. | Terms of trade |
| D. | All of the above |
| Answer» E. | |
| 148. |
The income terms of trade is called the |
| A. | Capacity to export |
| B. | Capacity to import |
| C. | Capacity to change |
| D. | Capacity to remain constant |
| Answer» C. Capacity to change | |
| 149. |
The theory of gains from trade was at the core of the |
| A. | Technical progress |
| B. | Change in employment |
| C. | Modern theory of international trade |
| D. | Classical theory of international trade |
| Answer» E. | |
| 150. |
The modern economists considered the gains from trade resulted from |
| A. | Increased production and specialization |
| B. | Increased competition |
| C. | Exchange and specialization |
| D. | All of the above |
| Answer» D. All of the above | |