International & National Tarde Test 04 Mcqs Preparation Online

1. The theory explaining trade between two countries is called?

A. Comparative trade theory

B. Comparative disadvantage theory

C. None of the above

D. Comparative cost theory

2. Rich countries have deficit in their balance of payments?

A. Always

B. Sometimes

C. Alternate years

D. Never

3. Trade between two countries takes place when?

A. Cost ratios of commodities are low

B. Cost ratios of commodities are high

C. Cost ratios of commodities are different

D. Cost ratios of commodities are equal

4. The theory explaining trade between two countries is called?

A. Comparative advantage

B. Comparative trade

C. Comparative returns

D. Comparative bargain

5. Foreign trade?

A. Benefits all countries

B. Benefits underdeveloped countries

C. Benefits democratic countries

D. Benefits developed countries

6. In foreign trade, Protection policy means?

A. Restrictions on imports

B. Restriction on transfer of foreign exchange

C. Restrictions on exports

D. All of the above

7. Foreign trade has the advantage?

A. Can import machinery and technology

B. (b) and (c) of above

C. Can import scarce raw materials

D. Trading countries get foreign exchange

8. If a country decreases the external value of its currency, it will affect?

A. Volume of imports

B. All of the above

C. General price level

D. Volume of exports

9. Foreign trade?

A. All of the above

B. Increases international mobility of labour

C. Increases employment opportunities

D. Increases competition

10. David Ricardo presented the theory of international trade called?

A. Theory of absolute advantage

B. Theory of comparative advantage

C. Theory of equal advantage

D. Theory of total advantage

International & National Tarde Test 04 Mcqs Preparation Online

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