Question # 1

Advantages of international trade are

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One

Two

Three

Many

Inflation can be controlled by:

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Fiscal policy

Monetary policy

Trade policy

Both a and b

The systematic record of visible and invisible exports and imports of a country in one year is called

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Balance of trade

Balance of payment

External balance

Internal balance

Foreign exchange is used in

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Local trade

Regional trade

Domestic trade

International trade

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

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Two

Three

Four

Many

Balance of payments is annual statistical record of

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Visible goods

Invisible goods

Foreign loans

Visible and invisible goods

Which economist has stated the definition of balance of payments

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Robbins

Kindleberger

Marshall

Keynes

In balance of payment are included

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Visible items

Invisible items

Visible and invisible items

Material items

If the face value of a coin is greater than the value of metal used in:

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Legal money

Token money

Standard money

Both b and c

A system where the goods are exchanged with money is known as:

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Monetary system

Barter system

Coins system

Modified system

Which of the following is not invisible trade

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Expenditure on education in other country

Expenditure on imported machinery

Expenditure of passengers traveling by air

Expenditure of goods carried by a ship

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

The base of international trade theory of Adam Smith is

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Absolute advantage

Comparative cost

Cheaper cost

Low cost

The record of visible and invisible items on international account is called

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Balance of payment

Balance of trade

Balance of budget

Capital account

One of the following is not included in the methods of removing deficit in balance of payments of a country

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Increase in exports

Increase in imports

Devaluation of currency

Decrease in the quantity of money

Difficulties in barter system:

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Lack of double coincidence of wants

Lack of storing value

Lack of common measure of value

All of these

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

International Monetary fund is

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Local

Regional

National

International

When general price level increases due to increase in aggregate demand, it is known as?

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Stagflation

Hyper inflation

Demand pull inflation

Cost push inflation

The base of international trade theory of Devid Ricardo is

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Absolute advantage

Comparative cost

Cheaper cost

Low cost

In which year international monetary fund was established

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1941

1944

1945

1947

Recent international depression was appeared in:

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1936

1990

2005

2008

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Principles of Economics Icom Part 1 English Medium Chapter 12 Online Test MCQs With Answers

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