. Which of the following is a modern theory of international trade? a) absolute cost b) comparative cost c) Factor endowment theory d) none of these . Exchange rates are determined in a) money market b) foreign exchange market c) stock market d) capital market .
Exchange rate for currencies is determined by supply and demand under the system of a) Fixed exchange rate b) Flexible exchange rate c) Constant exchange rate d) Government regulated exchange rate . Net export equals …… a) Export x Import b) Export + Import c) Export – Import d) Exports of services only . Who among the following enunciated the concept of single factoral terms of trade? a) Jacob Viner b) G.S.Donens c) Taussig d) J.S.Mill - - International Economics .
Terms of Trade of a country show …………… a) Ratio of goods exported and imported b) Ratio of import duties c) Ratio of prices of exports and imports d) Both (a) and (c) . Favourable trade means value of exports are ……. than that of imports. a) More b) Less c) More or Less d) Not more than .
If there is an imbalance in the trade balance (more imports than exports), it can be reduced by a) decreasing customs duties b) increasing export duties c) stimulating exports d) stimulating imports . BOP includes a) visible items only b) invisible items only c) both visible and invisible items d) merchandise trade only . Components of balance of payments of a country include a) Current account b) Official account c) Capital account d) All of above . In the case of BOT, a) Transactions of goods are recorded.
b) Transactions of both goods and services are recorded. c) Both capital and financial accounts are included. d) All of these . Tourism and travel are classified in which of balance of payments accounts?
a)merchandise trade account b) services account c)unilateral transfers account d) capital account . Cyclical disequilibrium in BOP occurs because of a) Different paths of business cycle. b) The income elasticity of demand or price elasticity of demand is different.