International & National Tarde Test 02 Mcqs Preparation Online

1. In a free trade world in which no restrictions exist, international trade will lead to?

A. Reduced real living standard

B. Decreased efficiency

C. Increased efficiency

D. Reduced real GDP

2. Term of trade of a country show?

A. (a) and (c) of above

B. Ratio of prices of exports and imports

C. Ratio of import duties

D. Ratio of goods exported and imported

3. Terms of trade of developing countries are generally unfavourable because?

A. They import value added goods

B. They export few goods

C. They export primary goods

D. (a) and (b) of above

4. Govt. policy about exports and imports is called?

A. Commercial policy

B. Monetary policy

C. Finance policy

D. Fiscal policy

5. Two countries can gain from foreign trade if?

A. Tariff rates are different

B. (a) and (c) of above

C. Cost ratios are different

D. Price ratios are different

6. Dumping refers to?

A. Buying goods at low prices abroad and selling at higher prices locally

B. Sale of goods abroad at low a price, below their cost and price in home market

C. Reducing tariffs

D. Expensive goods selling for low prices

7. According to Hecksher and Ohlin basic cause of international trade is?

A. Difference in ideology

B. Difference in factor endowments

C. Difference in political systems

D. Difference in markets

8. All are advantages of foreign trade EXCEPT?

A. Optimum utilisation of country's resources

B. People get foreign exchange

C. Cheaper goods

D. Nations compete

9. International trade and domestic trade differ because of?

A. All of the above

B. Immobility of factors

C. Trade restrictions

D. Different government policies

10. What would encourage trade between two countries?

A. Frontier checks

B. National currencies

C. Reduced tariffs

D. Different tax system

International & National Tarde Test 02 Mcqs Preparation Online

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