International Economics Book Back Practice Test

12th Standard Economics — International Economics: Book Back Online Practice Test

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Trade between two countries is known as ____________ trade

A.External B.Internal C.Inter-regional D.Home

Which of the following factors influence trade?

A.The stage of development of a product B.The relative price of factors of productions C.Government D.All of the above

International trade differs from domestic trade because of

A.Trade restrictions B.Immobility of factors C.Different government policies D.All the above

In general, a primary reason why nations conduct international trade is because

A.Some nations prefer to produce one thing while others produce another B.Resources are not equally distributed among all trading nations C.Trade enhances opportunities to accumulate profits D.Interest rates are not identical in all trading nations

Which of the following is a modern theory of international trade?

A.Absolute cost B.Comparative cost C.Factor endowment theory D.None of these

Exchange rates are determined in

A.Money market B.Foreign exchange market C.Stock market D.Capital market

Exchange rate for currencies is determined by supply and demand under the system of

A.Fixed exchange rate B.Flexible exchange rate C.Constant exchange rate D.Government regulated exchange rate

Net export equals ______

A.Export x Import B.Export + Import C.Export - Import D.Exports of services only

Who among the following enunciated the concept of single factoral terms of trade?

A.Jacob Viner B.G.S. Dorrance C.Taussig D.J.S. Mill

Q10

Terms 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.Both (a) and (c)

Q11

Favourable trade means value of exports are ________ than that of imports.

A.More B.Less C.More or Less D.Not more than

Q12

If there is an imbalance in the trade balance (more imports than exports), it can be reduced by

A.decreasing customs duties B.increasing export duties C.stimulating exports D.stimulating imports

Q13

BOP includes

A.visible items only B.invisible items only C.both visible and invisible items D.merchandise trade only

Q14

Components of balance of payments of a country include

A.Current account B.Official account C.Capital account D.All of above

Q15

In the case of BOT,

A.Transactions of goods are recorded. B.Transactions of both goods and services are recorded. C.Both capital and financial accounts are included. D.All of these

Q16

Tourism and travel are classified in which of balance of payments accounts?

A.merchandise trade account B.services account C.unilateral transfers account D.capital account

Q17

Cyclical disequilibrium in BOP occurs because of

A.Different paths of business cycle B.The income elasticity of demand or price elasticity of demand is different C.long-run changes in an economy D.Both (a) and (b)

Q18

Which of the following is not an example of foreign direct investment?

A.the construction of a new auto assembly plant overseas B.the acquisition of an existing steel mill overseas C.the purchase of bonds or stock issued by a textile company overseas D.the creation of a wholly owned business firm overseas

Q19

Foreign direct investments not permitted in India

A.Banking B.Atomic energy C.Pharmaceutical D.Insurance

Q20

Benefits of FDI include, theoretically

A.Boost in Economic Growth B.Increase in the import and export of goods and services C.Increased employment and skill levels D.All of these

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About this International Economics test

This free online practice test covers International Economics from the 12th Standard Economics (Samacheer Kalvi) syllabus. Choose the number of questions and an optional time limit, then answer and submit — everything is checked in your browser, with the correct answers and a worked explanation shown at the end. For the full solutions to every question in this set, see the solved MCQs page.

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