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8th Chapter

12th Economics Chapter 8 Test

Here you can prepare 12th Economics English Medium Chapter 8 International Trade Test. Click the button for 100% free full practice test.

2nd Year Economics Chapter 8 Online MCQ Test for 12th Class Economics Chapter 8 (International Trade)

This online test contains MCQs about following topics:

. Difference between domestic and foreign trade, Advantages of international trade, Classical theory of international trade, Free trade and protection, Balance of trade vs balance of payments, foreign exchange rate, Fixed and floating exchage, Globalization MNCs, TNCs, WTO, Graphic explanation of trade theory.

ICS Part 2 Economics Ch. 8 Test
ic

2nd Year Economics Chapter 8 Online MCQ Test for 12th Class Economics Chapter 8 (International Trade)

Sr. # Questions Answers Choice
1 Term 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. A and C of above
2 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
3 The receipts and payments for goods exported and imported are counted in
  • A. Trade account
  • B. Capital account
  • C. Current account
  • D. monetary account
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 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
6 Export goods is called trade in
  • A. Visible goods
  • B. Invisible goods
  • C. Basic goods
  • D. Real goods
7 The balance of payment account of a country includes
  • A. Official transfer of foreign exchange
  • B. smuggling transactions
  • C. loans and aid
  • D. Both and c of the above
8 IMF give loans.
  • A. To fill gape in balance of payments
  • B. to fill gap in government budget
  • C. To decrease inflation
  • D. To increase employment opportunities
9 Balance of payments of country inclueds
  • A. Balance of trade
  • B. Capital receipts and payments
  • C. Saving and investment account
  • D. a and b above
10 If balance of payment country is in deficit, then
  • A. Current account will be in deficit
  • B. Country can increase money supply to end deficit
  • C. The country can borrow from abroad
  • D. a and c above

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