| 1 |
Exchange rate of currencies is determined by supply and demand in system of |
- A. Fixed exchange rate
- B. flexible
- C. constant
- D. govt. regulated
|
| 2 |
Modern theory of international trade is based on the views of |
- A. Robbins and Ricardo
- B. Adam Smith and Marshall
- C. Heckcsher and Ohlin
- D. Saleem and Kareem
|
| 3 |
A tariff |
- A. Increases the volume of trade
- B. Reduces the volume of trade
- C. Has no effect on volume of trade
- D. A and C of above
|
| 4 |
If Japan and Pakistan start free trade, difference in wages in two countries will |
- A. Increase
- B. Decrease
- C. No effect
- D. Double
|
| 5 |
Visible goods are recorded in this part of balance of payments account |
- A. Current account
- B. Capital account
- C. Govt. Account
- D. Official account
|
| 6 |
A tariff is |
- A. A restriction on the number of export firms
- B. Limit on the amount of imported goods
- C. Tax on imports
- D. B and C of above
|
| 7 |
In Japanese import more goods from Pakistan. |
- A. Our balance of payments will improve
- B. Japan's BOP wll deteriorate
- C. Our BOP will deteriorate
- D. a and b of above
|
| 8 |
All are advantages of foreign trade EXCEPT |
- A. People get foreign exchange
- B. Nations compete
- C. Cheaper goods
- D. Optimum utilisation of country's resources
|
| 9 |
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
|
| 10 |
Govt. policy about exports and imports is called |
- A. Monetary policy
- B. Fiscal policy
- C. Commercial policy
- D. Finance policy
|
