PPSC Economics Topic 5 MCQS Test Preparation

Candidates who have done their higher education in the Economics subject and are looking to start their career through PPSC, here we come with the best preparation solution for them. We come with the online PPSC economics tests. These tests are designed by professionals who are familiar with the idea that how examiners arrange the paper for PPSC. Candidates can get a full book test as well as the Topic-wise tests. However, here on this page, the PPSC economics online test of Topic 5th is available.

MCQ's Test For PPSC Economics Topic 5 International Economics

Try The MCQ's Test For PPSC Economics Topic 5 International Economics

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PPSC Economics Topic 5 International Economics

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Question # 1

The term of trade is given by theprices.

Question # 2

Trade based on comparative advantage assures that.

Question # 3

A feasible effect of international trade is that a

Question # 4

Which exchange rate mechanism is intended to insulates the balance of payments from short term capital movements while providing exchange rate stability for commercial transactions.

Question # 5

If a country has a linear production possibilities frontier then production is said to be subject to.

Question # 6

When the price of foreign currency exchange is above the equilibrium level.

Question # 7

Small nations whose trade and financial relationships are mainly with a single partner tend to utilize.

Question # 8

The product cycle theory of trade is essentially a

Question # 9

A tariff that prohibits imports has only

Question # 10

The world trade organization is sometimes criticized for all of the following reasons except.

Question # 11

_____________ represent the most widely used tool in international finance for measuring the average value of a currency relative to a number of other currencies

Question # 12

Small nations with more than one major trading partner lend to peg the value of their currencies to.

Question # 13

Advocates of industrial policy maintain that government should.

Question # 14

The exchange rate is kept the same across geographically separate markets by

Question # 15

According to the Heckscher - Ohlin model

Question # 16

If import licenses are auctioned off to domestic importers in a competitive market their scarcity value accurse to.

Question # 17

The least common type of transaction in the foreign exchanges is a.

Question # 18

In developed countries tariffs on raw materials tend to be.

Question # 19

International dumping may involve.

Question # 20

Most tariffs have

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PPSC Economics Chapter 5 Important MCQ's

Sr.# Question Answer
1 A main advantage of specialization results from
A. Economics of large scale production
B. The specializing country behaving as a monoploidy.
C. smaller production runs resulting in lower unit costs
D. High wages paid to foreign workers
2 Which exchange rate mechanism is intended to insulates the balance of payments from short term capital movements while providing exchange rate stability for commercial transactions.
A. Dual exchange rates
B. Managed floating exchange rates
C. Adjustable pegged exchange rates
D. Crawling pegged exchange rates.
3 The gain from international trade are closely related to.
A. the labor theory of value
B. How much the autarky price differs from international terms of trade change.
C. The fact that a country must lose from trade
D. All of the above
4 The balance of trade can only worsen if income_______ relative to absorption
A. Increases
B. Decreases
C. Does not change
D. None of the above
5 according to factor price equalization theorem, if country A is labor abundant then once trade opens.
A. Wages and rents should fall in A
B. Wages and rents should rise in A
C. Wages should rise and rents should fall in A
D. Wages should fall and rents should rise in A
6 In the classical model of Ricardo the direction of trade is determined by
A. Absolute advantage
B. Comparative advantage
C. Physical advantage
D. Which way the wind blows
7 If a nation has an open economy it means that the nation.
A. Allows private ownership of capital
B. Has flexible exchange rates
C. Has fixed exchange rates
D. Conducts trade with other countries
8 A country transactions with the rest of the world are recorded in the
A. Balance of international indebtedness
B. Balance of financial transactions
C. Balance of payments
D. Income statement
9 The product cycle theory of trade is essentially a
A. Static short run trade theory
B. Dynamic, long run trade theory
C. Zero sum theory of trade
D. Negative sum theory of trade
10 Import substitution is an example of
A. The principle of comparative advantage
B. The pricnipal of absolute advantage
C. An outward looking growth strategy
D. An inward looking growth strategy

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