Question # 1

Quantity theory of money was criticized by:

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Marshall

Sameulson

Keynes

Both b and c

When general price level increases due to increase in cost of production, it is known as ?

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Stagflation

Hyper inflation

Demand pull inflation

Cost push inflation

The relation between quantity of money and value of money is:

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Positive

Negative

Direct

Inverse

Comparative cost theory was presented by

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Marshall

Ricardo

Hecksher

Ohlin

The most appropriate definition of money was given by:

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F.A.Walker

Keynes

Pigou

Crowther

Balance of payment of a country in unfavourable when its

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Receipts are more than payments

Receipts are less than payments

Receipts are equal to payments

None of three

The base of international trade theory of Adam Smith is

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Absolute advantage

Comparative cost

Cheaper cost

Low cost

The trade that takes place between the inhabitants of two countries is called

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Domestic trade

International trade

National trade

Regional Trade

Money which can be converted into cash money is known is:

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Near money

Paper money

Legal tender money

Token money

One of the following is not disadvantage of international trade

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Dependence on production of limited goods

Supply of goods injurious to health

Bitter pill for political freedom

Development of civilization & culture

In between how many countries international trade takes place under comparative cost theory

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Two

Three

Four

Many

In balance of payment are included

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Visible items

Invisible items

Visible and invisible items

Material items

Balance of payment of a country is balanced when its

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Receipts are more than payments

Receipts are less than payments

Receipts are equal to payments

None of three

The exchange of goods and services from country to country is called

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Foreign

National trade

Corporate trade

Domestic trade

International trade is based on the following except

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Different factors of production are required for the production of different goods

Factors of production exist in different ratios in different countries

Factors of production are in abundant quantity in different countries

Factors of production are in limited quantity in different countries

Which economist explained the absolute difference of cost of two good between two countries

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Malthus

Adam Smith

Ricardo

J.S Mill

Deflation means:

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Rapid increase in price level

General decrease in price level

General increase in price level

Both a and c

One of the following is invisible item of balance of payment

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Import of motor cars

Exports of cotton

Expenditure of passengers traveling by air

Private investment in foreign country

According to classical theory of international trade, a country imports those goods from the other country which

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Are durable

Are standardised

Are produced comparatively at high cost

Are not produced in that country

Inflation can be controlled by:

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Fiscal policy

Monetary policy

Trade policy

Both a and b

Comparative cost theory is also called

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Theory of comparison cost

Theory of specialization of cost

Theory of balanced cost

Theory of specialization of production

Balance of payment of a country is favourable when its

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Receipts are more than payments

Receipts are less than payments

Receipts are equal to payments

None of three

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