Question # 1

A country transactions with the rest of the world are recorded in the

Choose an answer

Balance of international indebtedness

Balance of financial transactions

Balance of payments

Income statement

A current account surplus implies that

Choose an answer

The country is a net lender to the rest of the world

The country is running a net capital account surplus

Foreign investment in domestic securities is at very low levels

All of the above

In balance of payments accounting tourism and travel are classified in the

Choose an answer

Merchandise trade account

Services account

Unilateral transfers account

Capital account

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

Choose an answer

an excess supply of that currency exists in the foreign exchange market.

an excess demand for that currency exists in the foreign exchange market

The supply of foreign exchange shifts outward to the right

the supply of foreign exchange shifts backward to the left

Which exchange rate system does not require monetary reserves for official exchange rate intervention.

Choose an answer

Floating exchange rates

Pegged exchange rates

Managed floating exchange rates

Dual exchange rates

Among the institutions and polices that have been created to support developing countries are.

Choose an answer

the World bank

The international Monetary Fund

The Generalized system of Preferences

All of the above

Absolute advantage is determined by

Choose an answer

Actual difference in labor productivity between countries.

Relative difference in labor productivity between countries.

Both a and b

Neither a nor b

A tariff can ___________ raise a country's welfare

Choose an answer

Never

Sometimes

always

None of the above

___________ are quotas that lead to a complete abolishment of trade.

Choose an answer

Nontariff barriers

Embargoes

Voluntary export restraints

Orderly marketing agreements

Quotas are government imposed limits on the ___ of goods trade between countries.

Choose an answer

Prices

Quantity

Revenue

Costs

Dynamic gains from trad could result from

Choose an answer

The stimulus of additional investment spending as markets open

Economies of large scale production as markets open

Additional competition made possible by the opening of markets

All of the above

International trade forces domestic firms to become more completive in terms of.

Choose an answer

The introduction of new products

Product design and quality

Product price

All of the above

International trade is based on the idea that

Choose an answer

Exports should exceed imports

Imports should exceed exports

Resources are more mobile internationally than are goods

Resources are less mobile internationally than are goods

According to the Heckscher - Ohlin model

Choose an answer

^{Every one automatically gains from trade}

The gainers from trade out number the losers from trade

The scarce factor necessary gains from trade

None of the above

Tariff levels in advanced countries tend to be ___ tariff levels in developing countries.

Choose an answer

Higher than

Equal to

Lower than

There is no general pattern

The movement to free international trade is most likely to generate short term unemployment in which industries'.

Choose an answer

Industries in which there are neither imports nor exports

Import competing industries.

Industries that sell to domestic and foreign buyers

Industries that sell to only foreign buyers

In today world most countries impose tariffs

Choose an answer

Only on imports

Only on exports

On both imports and exports

On imports exports and nontrade goods

The NAFTA is a

Choose an answer

Monetary union

Free trade area

Common market

Customs union

According to the________ the export of the product that embodies large amounts of the relatively cheap, abundant resorce results in an increase in its price and income of the resource used intensively in the import competing product decrease as its demand falls.

Choose an answer

Ricardian equivalence theorem

Smithian equivalence theorem

Stolpher Samuelson theorem

Bemanke Greenspan theorem

The difference between a country's balances of payments and its balance of international indebtedness.

Choose an answer

Is equal of official reserve transactions

Occurs because of foreign exchange fluctuations

Reflects statistical discrepancies

Reflects the difference between flow and stock concepts

Most tariffs have

Choose an answer

Only revenue effects

Only protective effects

Both protective ad revenue effects

Neither protective or revenue effects

More Classes

Other Links

PPSC Economics Chapter 5 International Economics MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer