economics b.a. part-i, paper-subsidiary

ECONOMICS
B.A. PART-I, PAPER-SUBSIDIARY 01.Who said? "Economics is only positive science".
? '' '' (A) Hicks - (B) Marshall -
(C) Robbins - (D) Pigou -
02. which of the following is not a welfare economist?
?
(A) J.B. Say - . . (B) Marshall -
(C) Pigou - (D) Cannon -
03. which of the following statement is true?
?
(A) Human wants are unlimited - (B) Means are limited - (C) Alternative use of means -
(D) all of these - 04. Who was the father of Economics?
?
(A) J.B. Say - . . (B) Malthus -
(C) Adam Smith - (D) Robbins -
05. Economics is studied:
: (A) In the forms of Normative science - (B) In the form of positive science - (C) In the form of science and Art -
(D) In the form of only Art - 06. "Economics is both Art and Science." This statement is of:
'' '' : (A) Robinson - (B) Pigou -
(C) Keynes - (D) Prof. Kosha - .
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07. Prof. Robbins Was supporter of: -
. :-
(A) Art form of economics - (B) Science from of economics - (C) Both Art and Science from of economics - (D) All of these - 08. The subject matter of Economics

(A) Consumption - (B) Production -
(C) Exchange - (D) All of these - 09. According to Prof. Adam Smith Economics is:
. : (A) Science of welfare -
(B) Science of wealth - (C) Science of welfare and wealth - (D) All of these - 10. Economics is a science because:
: (A) Because of systematic study of facts -
(B) Principles of economics establish relationship between cause and effect –
(C) Both (A) and (B) - (A) (B)
(D) None of these - 11. Consumer behaviour is studied in: -
:- (A) In Micro Economics - (B) In Income Theory - (C) In Macro Economics - (D)None of the above - 12. Micro Economics includes:
(A) Individual unit - (B) Small unit - - (C) Individual price determination - (D) All of above - 13. 'Micros' which means small belong to:
'' , - ?
(A) Arabic word- (B) Greek word -
(C) German word - (D) English word-
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14. The word 'Micro and Macro' was firstly used by:
' ' ?
(A) Marshall - (B) Boulding - (C) Keynes - (D) Ragner frish -
15. National income is studied in:
: (A) In Micro Economics - (B) In Macro Economics - (C) Both A and B - A B (D) None of these - 16. What is essential for the demand of any goods:
:
(A) Desire for a commodity - (B) Ability to purchase - (C) Willingness to purchase -
(D) All of the above - 17. Factors affecting demand is not:
: (A) Change in price -
(B) Change in income -
(C) Change in the Quantity of money -
(D) None of the above - 18. What is the nature of demand curve?
?
(A) Demand curve slopes downwards to the right -
(B) Demand curve slopes upwards to the right -
(C) Demand curve slopes upwards to the left -
(D) None of these - 19. Law of demand in Giffen Goods-
-
(A) Applied - (B) Not applied -
(C) Uncertain - (D) None of these - 20. Which of the following are substitute Goods.
(A) Tea and Coffee - (B) Motor and Petrol -
(C) Pen and Ink - (D) All of the above -
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21. Law of Equi-marginal utility is called:
- :
(A) Law of increasing utility -
(B) Law of Diminishing utility -
(C) Law of substitutions -
(D) None of these - 22. Who propounded the ordinal utility of theory?
?
(A) Marshall – (B) Pigou -
(C) Hicks & Allen - (D) Ricardo - 23. When marginal utility is negative, then total utility –
, - (A) Is maximum -
(B) Starts Decreasing -
(C) Increasing at Decreasing rate -
(D) None of these - 24. Elasticity of Demand is a-
-
(A) Qualitative statement -
(B) Quantitative statement -
(D) None of these - 25. Elasticity of Demand for necessities goods is:
:
(A) Zero – (B) Greater -
(C) Unlimited – (D) Less than one -
26. Who explained consumer surplus for the first the time?
?
(A) Malthus – (B) Pigou -
(C) Dupit - (D) Boulding -
27. Which rule is the base of consumer surplus?
?
(A) Law of Diminishing Returns -
(B) Law of equality - (C) Law of saving -
(D) None of the above -
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28. Who explained consumer surplus in a scientific way for the first time?
?
(A) Adam Smith - (B) Ricardo - (C) Marshall – (D) Robinson -
29. What is the reason of consumer surplus?
?
(A) Law of Diminishing utility -
(B) Price equal to marginal utility -
(C) Equal price for all units -
(D) All of the above - 30. Consumer surplus is equal to:
:
(A) Total utility – (Price x number of units purchased) - - ( x ) (B) Price – (Total utility x number of units purchased) – - ( x ) (C) Numbers of units purchased – (Total utility x Price) – - ( x )
(D) None of these - 31. Price elasticity of demand means:
:
(A) Change in demand due to change in price -
(B) Change in demand -
(C) Change in real income -
(D) All of the above - 32. Which of the following shows elasticity of demand less than one?
?
(A) Necessity Goods - (B) Comfort Goods - (C) Luxury Goods - (D) All of the above - 33. With which method, Elasticity of Demand is measured:
:
(A) Total Expenditure method -
(B) Percentage or Proportional Method -
(C) Point method -
(D) All of the above -
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34. The nature of cross elasticity in Complementary Goods:
:
(A) Negative - (B) Positive -
(C) Both (A) and (B) - (A) (B) (D) None of the above-
35. If the demand for a goods change by 80% due to 60% change in price the elasticity of demand is:
60% 80% :
(A) 0.5 (B) 1.3 (C) 1 (D) 0 36. In the ----------- all factor or inputs become variable and no inputs is fixed.
----------- (A) Short run -
(B) Long run -
(C) Law of variable proportions -
(D) Law of diminishing marginal return -
37. The law of variable proportions is also called as--------------.
-------------- (A) Law of diminishing marginal returns-
(B) Law of increasing marginal returns -
(C) Law of returns -
(D) Law of proportionate returns -
38. The law of variable proportions depends on the assumption-----------------.
........ (A) Heterogeneity of factor -
(B) Homogeneity of factors -
(C) Changing technology -
(D) Varied types of goods -
39. Which is the best stage of production in the law of variable proportions?
?
(A) Increasing returns -
(B) Diminishing returns -
(C) Positive marginal returns -
(D) Negative marginal return - 40. In law of increasing returns-
- (A) MC < AC (B) M C > AC (C) MC = AC (D) MC x AC
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41. Which of the following is not variable inputs?
- ?
(A) Raw material - (B) Power - (C) Equipment - (D) None of these - 42. The title of Thomas Robert Malthus most impressive writing was-
- (A) An essay on population growth -
(B) Population and food growth -
(C) An essay on the principle of population -
(D) The limitation of man - 43. According to Malthus the population growth is.
, (A) Proportionally - (B) Exponentially -
(C) Arithmetically - (D) Geometrically -
44. Nature checks on population growth can include?
?
(A) War - (B) Famine - (C) Disease - (D) All of these - 45. When did Malthus principal first published?
?
(A) 1698 (B) 1798 (C) 1898 (D) 1998 46. How many years does population become double according to Malthus?
, ?
(A) 200 (B) 256 (C) 25 (D) 2000 47. ''Nature’s dining table is for limited guest, so an invited visitor must starve'' Whose statement is this?
'' , '' ?
(A) Karl Marx - (B) Dalton -
(C) Robbins - (D) Malthus -
48. “A baby come to the world not only with a mouth and stomach but also with pair of hands'' Whose statement of this?
" , '' ?
(A) Prof. Cannon - . (B) Dalton -
(C) Karl Marx - (D) Hicks -
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49. ------------- introduced in 1924 “the principle of optimum population” in his book “wealth”.
------------- 1924 "" " " (A) Malthus - (B) C.P. Blanker - .. (C) Edwin Cannon - (D) Raymond Pearl - 50. Economic cost includes explicit cost and?
- ......... (A) Implicit cost - (B) Social cost -
(C) Fixed cost - (D) Money cost -
51. Opportunity cost is-
-
(B) Total cost -
(C) Accounting cost -
(D) Cost of foregone opportunity -
52. The cost which vary as the level of output varies are called-
- , -
(A) Variable cost - (B) Direct cost -
(C) Prime cost - (D) All of the above - 53. Which one of the following is correct?
?
(A) TC=TFC x TVC (B) TC=TFC=TVC (C) TC=TFC+TVC (D) TC=TFC-TVC 54. When production is zero total cost will be-
- (A) Zero -
(B) Equal to variable cost -
(C) Equal to fixed cost -
(D) Equal to marginal cost -
55.Which of the following is not an essential condition of pure competition?
?
(A) Large numbers of buyers and sellers - (B) Homogeneous product - (C) Freedom of entry - (D) Absence of transport -
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56. Under which of the following forms of markets structure does a firm has no control over the price of its product?
?
(A) Monopoly ()
(B) Oligopoly () (C) Monopolistic competition ( )
(D) Perfect competition ( ) 57. Profit of the Firm will be maximum at: -
:-
(A) MR – MC (B) Additional revenue from extra unit equals its additional cost.
( ) (C) Both of above ( ) (D) None of the above ( ) 58. The demand curve facing a perfectly competitive firm is:
:
(A) Downward sloping ( ) (B) Perfectly inelastic ( ) (C) A concave curve ( ) (D) Perfectly elastic ( ) 59. Under the Monopoly price discrimination depends upon:
:
(A) Elasticity of demand for commodity ( )
(B) Elasticity of supply for commodity ( )
(C) Size of Market ( ) (D) All of the above ( ) 60. Marginal revenue is equal to price for which of the following types of market structure?
?
(A) Perfect competition -
(B) Monopolistic competition - (C) Monopoly -
(D) Oligopoly - 61. Monopoly market is:
:
(A) Single seller market -
(B) Single Buyer Market - (C) Single buyer and seller -
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62. For a firm with monopoly power:
:
(A) Price is equal to marginal cost -
(B) Price is less than marginal cost -
(C) Price exceeds to marginal cost -
(D) None of these - 63. The condition of short - run equilibrium under perfect competition is:
:
(A) MC = MR - MC = MR
(B) MR cuts MR from below - MC, MR
(C) MC is rising when it cuts AR - MC , AR
(D) All of the above - 64. Which of the following is not an essential condition of perfect competition?
?
(A) Large number of buyers and sellers - (B) Homogeneous product - (C) Perfect knowledge of the market -
(D) None of these - 65. All monopolies have the characteristics except one of the following:
:
(A) Diseconomies scale - (B) no close substitutes - (C) Influence over price - (D) barriers to entry -
66. For a Monopoly, the industry demand is the firm’s:
, : (A) Profit function -
(B) Marginal revenue curve -
(C) Supply curve -
(D) Demand curve -
67. Monopoly can be controlled by: -
:-
(A) by social boycott -
(B) by Anti-monopoly legislation - (C) by public ownership - (D) by all of the above -
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68. The condition of long run equilibrium for a perfectly competitive firm will be :
: (A) Price = MC = AC (B) Price = TC (C) MC = AVC (D) MC = MR 69. A firm which is the sole seller of a product without any close substitute is called-
, -
(A) Monopoly - (B) Oligopoly - (C) Competition - (D) Bureaucracy – 70. Which of the following is a characteristic of a monopoly:
:
(A) Single seller or producer -
(B) No close substitutes - (C) Inelastic demand curve -
(D) All of the above - 71. The reasons for the emergence of monopoly are: -
:-
(A) Concentration of ownership of raw materials - (B) State regulation -
(C) Public utility service - (D) All of these - 72. Which of the following is the best example of perfectly competitive market:
: (A) Diamond - (B) Athletics shoes - (C) Soft drinks - (D) Farming - 73. Perfectly competitive firms are price takers because:
:-
(A) Each firm is very large -
(B) There are no good substitutes for the goods -
(C) Other firms also produce similar goods -
(D) their demand curve is downward sloping - 74. National income is calculated in India -
-
(A) by Central Statistical Organization - (B) by National Sample Survey Organization - (C) by Reserve Bank of India - (D) by Finance Ministry -
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75.National income is calculated

(A) At Current prices -
(B) At constant prices - (C) Both Current and constant prices -
(D) On price ratios -
76. -
Double counting means-
(A) Counting the product more than once - (B) Counting the product at different levels - (C) Calculating both the product and the payment - (D) Calculate the monetary value of the product - . 77. Which of the following is a method of measuring National Income?
?
(A) Income Method - (B) Expenditure Method -
(C) Product Method - (D) All of the above - 78. The difference between GDP and NDP is due to
GDP NDP
(A) Depreciation – (B) Indirect Tax - (C) Subsidy - (D) Direct Tax - 79. Intermediate goods are not included in GDP because

(A) Such goods are difficult to define -
(B) Such goods are not directly consumed -
(C) They cannot be valued -
(D) They create the problem of duplicity -
80. The main exponent of social accounting method was

(A) Fisher – (B) Marshall -
(C) Pigou - (D) Richard Stone -
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81. Which of the following is a cause of difficulties in the measurement of national income?
?
1.Difficulty in collecting data -
2. Difficulty of Double Counting -
3. The trend of Barter System -
(A) Only 1 - 1 (B) Only 2 - 2
(C) Only 3 - 3 (D) All of these- 82. What is the main indicator of economic progress of a country?
?
(A) Number of countrymen - (B) Level of Education - (C) Per capita income - (D) None of these - 83. Which of the following are not included in the three-sector economy under the circular flow of income?
?
(A) Household sector - (B) Business sector - (C) Government sector - (D) External sector -
84. ?
For what period is the national income calculated?
(A) One year - (B) Two years - (C) Three years - (D) Five years - 85. According to Marginal Productivity Theory of Distribution, Marginal Productivity of the factor means that

(A) How much is being produced from the last unit of the factor

(B) How much is being produced from the first unit of the factor

(C) How much is being produced from the total unit of the factor

(D) None of these - 86. Which theory of distribution is more valid in modern times?

(A) Marginal Productivity Theory -
(B) Demand-Supply Theory - -
(C) Both A and B above - A B
(D) None of these -
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87. The author of the book "The Distribution of Wealth (1899)" is –
" (1899)" - (A) J. B. Clark -. . (B) Adam Smith -
(C) David Ricardo - (D) J. S. Mill - ..
88. Who among the following has given the Marginal Productivity Theory of Distribution?
?
(A) Adam Smith - (B) J. S. Mill - ..
(C) J. B. Clark - . . (D) David Ricardo - 89. Which of the following is not included in the assumptions of Clark’s marginal productivity of distribution?

(A) Perfect competition -
(B) Constant population - (C) Constant amount of capital -
(D) Labour is heterogeneous -
90. Marginal Productivity Theory of Distribution is based on the following assumptions:
:
1. Depreciation rule applies in the economy
-
2. There should be a situation of perfect competition in the market
- 3. The quantity of the means of production should be stable
- (A) Only 1 - 1 (B) Only 2 - 2
(C) Both 1 and 2 -1 2 (D) All of the above - 91. Who has contributed significantly to the modern form of Marginal Productivity Theory of Distribution?
?
(A) Adam Smith - (B) Lionel Robbins -
(C) J. B. Clark - . . (D) Marshall -
92. Every factor of production gets reward equal to its:
:
(A) Cost - (B) Marginal productivity - (C) Price - (D) Increasing return -
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93. According to Ricardo's rent principle, the reason for the application of rent is –
-
(A) Soil fertility -
(B) Lack of land - (C) The difference between the fertility of the land -
(D) Fixed supply of land - 94. On which laws of returns is Ricardo's theory of rent based?
?
(A) On the law of increasing returns - - (B) On the law of constant returns - - (C) On the law of diminishing returns - - (D) None of these three -
95. What is the lowest grade land called?
?
(A) Land - (B) Marginal land -
(C) Super marginal land - (D) East Frontier Land -
96. According to the modern theory of rent –
- (A) Rent affects the price - ,
(B) Rent does not affect the price - ,
(C) Both A and B above - A B
(D) None of these -
97. By “original and indestructible power of the soil” David Ricardo means
" "
(A) Fertility of the soil - (B) Rent of soil -
(C) Value of the soil - (D) None of these -
98. According to the Ricardian Theory rent is

(A) Difference of product of superior land and inferior land
- (B) Difference of income between smaller farmers and bigger farmers
- (C) Surplus of product of all categories of land above the marginal land
-
(D) None of these -
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99. According to the Modern theory, rent arises on
?
(A) Labour only - (B) Land only -
(C) Capital only - (D) All factors -
100. The modern Theory of rent has been developed by
?
(A) J. M. Keynes - .. (B) Alfred Marshall -
(C) Joan Robinson - (D) D.H. Robertson - ..
101. The following affect rent except
: (A) Better location - (B) Fertility of land - (C) Cleverness of landlords - (D) Scarcity of land -
102. Which one of the following pairs of economists and theories propounded by them is correctly matched?
?
(1) J.S. Mill - Wage Fund Theory
.. -
(2) Marshall - Demand and supply theory of wages
-
(A) Only 1 - 1 (B) Only 2 - 2
(C) Both 1 and 2 - 1 2 (D) None of these -
103. According to the modern theory of wages, wages are determined by

(A) The demand for labour -
(B) the supply of labour -
(C) Both the demand for labour and the supply of labour -
(D) none of these - 104. Which one of the following pairs of economists and theories propounded by them is correctly matched?
?
(1) Prof. Marshall - Classical Theory of interest
. -
(2) J.M. Keynes - Liquidity Preference Theory of Interest
.. -
(A) Only 1 - 1 (B) Only 2 - 2
(C) Both 1 and 2 - 1 2 (D) None of these -
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105. Change in interest rate does not greatly affect the amount of currency to be held for the following purposes

(A) Transaction motive - -
(B) Precautionary motive -
(C) Both transaction and precautionary motive -
(D) Speculative motive - 106."Interest is the reward for parting with liquidity for a specified period." Whose statement is this?
'' '' ?
(A) Marshal - (B) Night -
(C) Bentham - (D) Keynes -
107. Who has contributed the modem theory of interest rate determination?
?
(A) Paul A. Samuelson - . (B) Gunnar Myrdal -
(C) Knut Wicksell - (D) J.R. Hicks - ..
108. Who propounded the liquidity preference theory of interest?
?
(A) J.M. Keynes - .. (B) J.S. Mill - ..
(C) Fisher - (D) Marshall –
109. Which of the following is responsible for variation in interest rates?
?
(A) Shortage of money -
(B) Variation of risk - (C) Variation in production -
(D) various uses of money -
110. The rate of interest is determined at the point where-
- (A) IS and LM curves intersect each other - IS LM
(B) IS curve is minimum - IS
(C) IS curve is maximum - IS
(D) none of the above -
111. According to Keynes, interest is a payment for:
, :
(A) Use of durable goods - (B) Use of capital -
(C) Use of money - (D) Use of land -
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112. Whose name is associated with the “Uncertainty-bearing theory of profit”?
“ ” ?
(A) J. Schumpeter - . (B) F.H. Knight - ..
(C) J.B. Clark - . . (D) F.W.Watker- . . 113. According to Schumpeter innovation plays an important role in
-
(A) Capitalist - (B) Landowner -
(C) Entrepreneur - (D) Labour –
114."Profit is both the cause as well as the effect of innovations.'' Whose statement is this?
" '' ?
(A) Marshall - (B) Schumpeter - (C) Knight - (D) Keynes -
115. Whose name is associated with the “Uncertainty-bearing theory of profit”?
" - " ?
(A) J. Schumpeter - (B) F.H. Knight -
(C) J.B. Clark - (D)F.W.Watker –. .
116. According to Prof Knight, profit is the reward for
?
(A) Innovation - '-' (B) Capital -
(C) Foreseeable risks - (D)Uncertainty bearing - - 117. According to Professor Knight Risks are of _____ kinds:
_____ : 1. Insurable certain risks -
2. Uninsurable risks or Uncertainties - - (A) 1 only - 1 (B) 2 only - 2
(C) Both 1 and 2 - 1 2 (D) None of these - 118. Which is the correct order of money evolution?
?
(A) Commodity Money, Paper Money, Metal Money - , , (B) Commodity Money, Metal Money, Paper Money, Credit Money - , , , (C) Credit Money, Metal Money, Paper Money - , ,
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119. Which one is included in the primary function of money?
?
(A) Medium of Exchange -
(B) Measure of Value -
(D) Store of Value -
120. Which one is included in the secondary function of money?
?
(A) To make Deferred Payments -
(B) Store of Value -
(C) Transfer of Value -
(D) All of these - 121. “Money is what money does”. Who said this: -
“ ” : - (A) Hartley Withers - (B) Harte - (C) Prof. Thomas - . (D) Keynes -
122. The function of money is: -
:- (A) Medium of Exchange -
(B) Measure of Value -
(C) Store of Value -
(D) All the above - 123. What are the necessary conditions of Barter System?
?
(A) Limited Needs -
(B) Limited Exchange Area -
(C) Economically Backward Society -
(D) All the above - 124. What are the advantages of Barter System?
?
(A) Simple System -
(B) More Mutual Co-operation -
(C) No Economic Disparities -
(D) All the above -
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125. Who is the author of the book "Principles of Economics"?
“Principles of Economics” .?
(A) Marshall - (B) Robertson -
(C) Keynes - (D) Pigou -
126. Who wrote “The Purchasing Power of Money”?
“The Purchasing Power of Money” ?
(A) Keynes - (B) Robertson -
(C) Marshall - (D) Hawtrey –
127. The classical economists focussed on the role of money as –
:- (A) Medium of exchange -
(B) Medium of distribution -
(C) Wealth -
(D) Link between present and future - 128. Arrange the following theories in the chronological order-
:-
(I) Cheque - (II) Metal Money -
(III) Goods Money - (IV) Paper Money - (A) (IV) (I) (III) (II) (B) (I) (III) (II) (IV) (C) (III) (II) (IV) (I) (D) (II) (IV) (I) (III) 129. Who is the author of the book "A Treatise on Money"?
‘A Treatise on Money’ ?
(A) Crowder - (B) Keynes -
(C) Robertson - (D) Pigou -
130. Money contains: -
(A) Coins - (B) Currency notes -
(C) Cheques - (D) All of the above - 131. The money that is legally accepted by everyone in the economy is called
, :-
(A) Legal tender money - (B) Plastic money - (C) Commodity money - (D) Credit money -
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132. Who is the author of the book “An Outline of Money”?
“An Outline of Money” ?
(A) Marshal - (B) Crouther -
(C) Keynes - (D) Fisher - 133. Who is the author of the book "The General Theory of Employment Interest and Money"?
“The General Theory of Employment Interest and Money” (A) Crowder - (B) Keynes -
(C) Robertson - (D) Pigou -
134. The currency whose metallic value is less than the declared value is called-
-
(A) Symbol currency - (B) Principal currency - (C) Commodity money - (D) None of these - 135. In present India currency means –
–
(A) Coins - (B) Paper money - (C) Demand deposit - (D) All of these - 136. All currency notes, except one rupee note, are issued by –
, –
(A) President - (B) Ministry of Finance -
(C) Reserve Bank of India - (D) State Bank of India -
137. Currency operations are reduced by –
–
(A) Ministry of Finance - (B) Finance Commission -
(C) Reserve Bank of India - (D) Planning Commission -
138. Whose statement is “Anythings that possesses general acceptability is called money”?
“ ” ?
(A) Seligman - (B) Pigou -
(C) Kent - (D) Ely – 139. Who propounded the statement "Bad money drives good money out of circulation"?
“ ” ?
(A) Crowder - (B) Keynes -
(C) Robertson - (D) Gresham -
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140. When money supply increases then price level rises proportionately according to:-
- :-
(A) Marshall - (B) Fisher -
(C) Keynes - (D) Cantillon -
141. In the classical theory, an increase in money supply lead to-
, -
(A) Decrease in price level -
(B) Increase in savings -
(C) Decrease in investment -
(D) Increase in price level -
142. In the equation Vm=I/P, Vm represents-
Vm=I/P Vm - (A) Quantity of Money - (B) Value of money -
(C) Value of good - (D) None of these - 143. Who is the author of the book "Principles of Economics"?
“Principles of Economics” .?
(A) Marshall - (B) Robertson -
(C) Keynes - (D) Pigou -
144. In Marshall's equation M=KY, Y represents
M=KY Y -
(A) Income - (B) Annual income -
(C) Real annual income - (D) None of these - 145. According to Milton Friedman, quantity theory of money deals with-
-
(A) Price -
(B) Income -
(C) Supply for money -
(D) Demand for money -
146. The classical economists focussed on the role of money as –
:- (A) Medium of exchange -
(B) Medium of distribution -
(C) Wealth -
(D) Link between present and future -
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147. If the values of all variable in Fisher’s quantity theory of money are doubled, the price level become-
, –
(A) Half - (B) Double -
(C) Constant - (D) None of these - 148. According to Fisher’s quantity theory of money: -
:- (A) MV=PT (B) MU=TP (C) MV=MP (D) MV=RT 149. According to Fisher’s, if the quantity of money is doubled, then the value of money will be: -
?
(A) Half - (B) Double -
(C) Constant - (D) None of these - 150. The exponent of the following equation was p=kR/M
– p=kR / M
(C) Marshall - (D) Hawtrey –
151. In Fisher's equation –
–
(A) M is constant - M (B) P is constant - P
(C) P and M is constant - P M (D) V and T constant - V T
152. Who formulated the n=pk equation?
n=pk - (A) Keynes - (B) Robertson -
(C) Marshall - (D) Pigou – 153. Who formulated the equation M=KPT?
M=KPT ?
(C) Marshall - (D) Pigou -
154. Who formulated the M=KY equation?
M=KY ?
(C) Marshall - (D) Pigou -
24 | P a g e
155. According to Keynes’ income theory-
- (A) Y=C-I (B) Y=C+I (C) Y=C+R (D) Y=C-R 156. According to Keynes’ income theory-
- (A) I = S (B) I > S (C) I < S (D) I + S 157.Inflation:
: (A) Always reduces the cost of living - (B) Always reduces the standard of living - (C) Reduces the price of products - (D) Reduces the purchasing power of a Rupee - . 158. Inflation is the state in which .........
........ (A) The value of money decreases -
(B) The value of money increases -
(C) The value of the money increases first and then decreases –

(D) The value of money decreases first and increases later –

159. In inflation market goods-
- (A) Gets Cheaper -
(B) Get expansive -
(C) Decreasing in sufficiency -
(D) Do not get - 160. Benefits of increasing inflation-
- (A) Corporations - (B) Government - (C) Creditor - (D) Borrower - 161. Which of the following is the cause of cost-push inflation?
?
(A) Increase in consumption -
(B) decrease in taxation - (C) Increase in demand -
(D) Increase in salary and wage -
25 | P a g e
162. Best way to control inflation-
- (A) Punish the guilty - (B) Increase production at on all level - (C) fixed the price - (D) Creating an atmosphere of fear and terror - 163. The following steps should be taken by the central bank to control inflation-
- (A) Sale of government securities in the open market
- (B) Decrease bank rate - (C) Purchase of securities - (D) Shortfall in reserve - 164. It is used to measure of inflation-
- (A) Consumption price index -
(B) International trade index -
(C) Whole sale price index -
(D) None of these - 165. "Currency expansion is unjust and currency contraction unjustified" is the statement.
" " (A) Crowder – (B) Keynes -
(C) Robertson – (D) Samuelson –
166. When inflation is between 10-20%, it is-
10-20% , - (A) Creping Inflation - (B) Running Inflation -
(C) Walking Inflation - (D) Hyper Inflation -
167. Which of the following comes under monetary measures to contain inflation?
?
(A) Credit control -
(B) Demonetisation of currency -
(C) Issue of new currency -
26 | P a g e
168. Which of the following comes under Fiscal measures to contain inflation?
?
(A) Reduction in unnecessary expenditure - (B) Increase in Taxes - (C) Both A and B - A B (D) None of these - 169. Which of the following types of inflation is based on the pace of increase in prices?
?
(A) Creeping inflation - (B) Walking inflation- (C) Hyperinflation - (D) All of the above - 170. Consider the following statements regarding the effect of inflation and select the correct answer from the given alternatives.

1.
2.
3.
(A) Only statement 1 is correct - 1
(B) Only statement 2 is correct - 2
(C) Only statement 3 is correct - 3
(D) All the above statements are correct -
171. Which of the following measures is used to control inflation?
?
(A) Monetary measures - (B) Fiscal measures -
(C) Both A and B - A B (D) None of these - 172. Which of the following is the cause of inflation:
: (A) Increase in Money Supply -
(B) Increase in Public Expenditure -
(C) Deficit Financing - (D) All of the above -
27 | P a g e
173. On increase in black money-
- (A) Increase in inflation -
(B) Decrease in inflation -
(C) Both A and B - A B
(D) None of these - 174. Who regulates the money circulation in India?
?
(A) State bank of India -
(B) Reserve Bank of India - (C) NABARD -
(D) Commercial Bank -
175. Which of the following is not an organised sector in India?
?
(A) Nationalised Bank - (B) Regional Rural Bank -
(C) Cooperative Bank - (D) Chits and money Lenders - 176. The first complete commercial bank in India is:
:
(A) Oudh Commercial Bank - (B) Dena bank -
(C) Imperial bank - (D) Presidency bank -
177. Which among the following rural bank has been named after river?
?
(A) Prathana Bank -
(B) Varada Grameen Bank -
(C) Thar anchalik Grammen Bank -
(D) Aravali Ketirya Grammen Bank -
178. What is the animal on the insignia of the RBI?
.. ?
(A) Lion – (B) Tiger – (C) Panther – (D) Elephant - 179. The accounting year of the RBI is:
... ?
(A) July-June - - (B) April-March - - (C) January-December - - (D) None of these -
28 | P a g e
180. Individual cannot open his account in:
:
(A) Urban Co-operative Bank -
(B) Reserve Bank of India - (C) Regional Rural Bank -
(D) Scheduled Commercial Bank - 181. Nationalisation of banks was done with the purpose of:
?
(A) Financing the industries -
(B) Improving credit facilities - (C) Consolidating the economy - (D) Improving security of deposits - 182. Final decision of printing currency in India rests with the:
:
(A) RBI - . ..
(B) Ministry of Finance -
(C) Cabinet committee on economic affairs -
(D) Both ‘A’ and ‘B’ - ‘A’ ‘B’00
183. Where is the Headquarter of SBI?
?
(A) New Delhi - (B) Mumbai -
(C) Patna - (D) Lucknow -
184. The rate at which banks lend to RBI is known as:
, ... :
(A) Bank rate - (B) Repo rate -
(C) Reverse repo rate - (D) Interest rate - 185. Full form of CRR is:
CRR :
(A) Credit reserve ratio -
(B) Cash recovery ratio - (C) Cash reserve ratio -
(D) Credit recovery ratio -
29 | P a g e
186. Who is authorized to issue coin in India?
?
(A) SBI - . .. (B) RBI - . ..
(C) Ministry of Finance - (D) Supreme Court -
187. Which of the following pairs is not correctly matched?
:
(A) Exim Bank : Financing for export import –
- : -
(B) RBI : Bankers Bank -
(C) IDBI : Industrial finance -
(D) FCI : Financial assistance to commercial institutions –
... : 188. The largest nationalized bank in India is:
:
(A) RBI - (B) SBI - (C) CBI - (D) New Bank of India - 189. The effect of decrease in the Cash Reserve Ratio of banks is:
:
(A) Increase in income of banks -
(B) Increase in the demand for securities by banks -
(C) Availability of more funds for credit creation of banks -

(D) All of the above - 190. When was Reserve of India was established?
?
(A) In 1935 - 1935 (B) In 1938 - 1938 (C) In 1951 - 1951 (D) In 1969 - 1969 191. Which of the following is not an asset of commercial banks?
?
(A) Fixed deposit -
(B) Commercial credit -
(C) Purchased bills -
(D) Treasury bill of banks -
30 | P a g e
192. Which of the following is not a main function of central bank?
?
(A) Authority to issue currency -
(B) Banker’s bank -
(C) Bank of the government -
(D) Promoter of industrial development - 193. When was the International Monetary Fund established?
?
(A) 27 December 1945 - 27 1945 (B) 30 January 1947 - 30 1947
(C) 1 January 1946 - 1 1946 (D) 24 September 1947 - 24 1947
194. Headquarter of International Monetary Fund is

(A) Washington - (B) Geneva -
(C) Singapore - (D) Paris - 195. The function of International Monetary Fund is-
-
(A) Giving loans to poor countries -
(B) Solving the problem of international payments -
(C) Economic reforms in a debt-ridden country - (D) None of the above - 196. The International Monetary Fund gives credit assistance to its member countries for the following purposes-
-
(A) For long term economic growth -
(B) For the establishment of heavy industries -
(C) To correct short term imbalance of balance of payments
-
(D) For infrastructure facilities in the country - 197. Paper gold is called?
?
(A) To SDR -
(B) Paper rupee which is fully backed by gold - (C) The currency of the European market -
(D) The special currency of the Arab countries -
31 | P a g e
198. The purpose of IMF is to
:
1. To promote international monetary cooperation - 2. To facilitate the expansion and balanced growth of international trade
-
3. To promote exchange stability -
(A) Only 1 - 1 (B) only 2 - 2
(C) Only 3 - 3 (D) all of the above - 199. If the Balance of Payment of a country is adverse, then which institution will help that country?
, ?
(A) World Bank -
(B) World Trade Organization -
(C) International Monetary Fund - (D) Asian Development Bank -
200. At present all the transactions of IMF are expressed as -
- (A) In gold - (B) In dollars - (C) In SDR - (D) None of the above - 201. Consider the following statements: -
Established as a result of the Bretton Woods Conference?
?
1. of the International Monetary Fund.
- 2. of the International Bank for Reconstruction and Development.
- 3. of the United Nations.
- Which of the above statements are correct?
- ?
(A) 1 and 2 - 1 2 (B) 2 and 3 - 2 3
(C) 1 and 3 - 1 3 (D) 1, 2 and 3 - 1, 2 3
202. When was the Bretton Woods conference held?
?
(A) In July 1944 - 1944 (B) In August 1944 - 1944 (C) In September 1944 - 1944 (D) In October 1944 - 1944
32 | P a g e
203. Which of the following is also known as International Bank for Reconstruction and Development?
?
(A) Asian Development Bank -
(B) World Bank -
(C) Reserve Bank of India -
(D) International Monetary Fund -
204. When was the World Bank established?
?
(A) 1916 - 1916 (B) 1944 - 1944
(C) 1945 - 1945 (D) 1947 - 1947 205. The Headquarter of World Bank is in

(A) Geneva - (B) Washington DC -
(C) New York - (D) Paris -
206. World Bank is known as

(A) International Bank for Reconstruction and Development
-
(B) International Bank for Construction and Development
-
(C) International Bank for Cooperation and Development
-
(D) None of the above - 207. International Bank for Reconstruction and Development gives?
?
(A) Short term loan - (B) Long term loan -
(C) Both of the above - (D) None of these - 208. Long term financial assistance for development purpose is provided by
?
(A) ADB - (B) WTO -
(C) IMF - (D) World Bank -
33 | P a g e
209. Which of the following statement is correct?
?
1.IBRD provides loans for construction of infrastructure.
- 2. The IMF provides loans to reduce the balance of payments deficit.
- (A) Only 1 - 1 (B) Only 2 - 2
(C) Both 1 and 2 - 1 2 (D) None of these - 210. India is getting loan from World Bank for which of the following project?
?
(A) Rural development -
(B) Infrastructure development -
(C) Poverty alleviation -
(D) All of the above - 211. Which of the following statements is correct?
?
1. Both the IMF & IBRD have headquarters in Washington
- IMF IBRD
2. IBRD is known as World Bank also - IBRD
(A) Only 1 - 1 (B) Only 2 - 2
(C) Both 1 and 2 - 1 2 (D) none of these - 212. Which of the following is not the function of the World Bank?
?
(A) To provide long term loan to the member countries
-
(B) To ensure exchange rate stability
-
(C) To provide loan to private investors belonging to member countries on its own guarantee
- (D) To provides loan mainly for productive activities
- 213. Which one of the following is not a direct tax?
?
(A) Income tax - (B) Corporate Tax - (C) Custom Duty - (D) Property Tax -
34 | P a g e
214. The tax whose Impact and incidence falls on the same person is called:
, :
(A) Direct tax - (B) Indirect tax - (C) Multiple tax - (D) Progressive tax - 215. If the rate of tax is the same for all income groups, then that tax will be:
, : (A) Progressive tax - (B) Regressive tax - (C) Proportional tax - (D) All of the above - 216. In which year Wealth Tax was first introduced in India?
?
(A) 1948 (B) 1957 (C) 1976 (D) 1991 217. “Expenditure is a better measure of ‘ability to pay tax’ than income.” This statement was given by:
“ , |” : (A) A. Dalton - . (B) N. Kaldor - . (C) R. Musgrave - . (D) Adam Smith - 218. Incidence of taxation on that person who:
, : (A) Cannot shift on others -
(B) Can shift on others -
(C) Can deprive -
(D) Can deferment -
219. If income elasticity of demand is high then:
: (A) Tax rates should be reduced -
(B) Tax rates should be increased -
(C) Tax should not be imposed -
(D) None of the above - 220. From which year Service Tax was introduced in India:
?
(A) 1990-91 (B) 1994-95 (C) 2004-05 (D) 2000-01 221. The largest contribution to India’s tax revenue is:
:
(A) Corporate tax - (B) Person income tax - (C) Service tax - (D) Custom duty -
35 | P a g e
222. The most important source of income of state government in India is:
:
(A) Land tax - (B) Agricultural income tax - (C) Import tax - (D) Sell tax - 223. “Ability to pay tax’ is a function of:
:
(A) Distribution of income -
(B) Size of national income - (C) Size of population –
(D) All of the above - 224. Agricultural income can be taxed by:
:
(A) By state governments only - (B) By central government only - (C) By central and state governments both - (D) By local organizations only - 225. The curve showing the relationship between tax rate and tax generated income is:
:
(A) Phillips curve - (B) Lorenz curve -
(C) Ozieve curve - (D) Laffer curve -
226. Carbon Tax is levied on the sale of:
‘ ’ : (A) Diamond – (B) Fossil fuel -
(C) Carbon dioxide - -- (D) Sugarcane - 227. What is charged in return for the services provided by the government:
: (A) Tax – (B) Fee – (C) Fine - (D) Gift - 228. In time of crisis, when people give financial money to the government as per their wish, it is called:
:
(A) Gift - (B) Subsidy - (C) Fee – (D) Tax –
36 | P a g e
229. Which of the following statement is true:
:
(A) Both tax and duty are optional -
(B) Both tax and duty are mandatory -
(C) Tax is optional, but duty is mandatory - ,
(D) Duty is optional, but tax is mandatory - ,
230. The largest contribution to the income of central government is:
:
(A) Direct tax - (B) Indirect tax - (C) Foreign debt - (D) Foreign donation - 231. The process of ‘Shifting of taxation’ is:
(Shifting of Taxation) :
(A) To shift from impact of tax to incidence of tax - (B) To shift from incidence of tax to impact of tax - (C) Both of the above are possible -
(D) None of the above - 232. The modern theory of public expenditure was propounded by whom of the following?
?
(A) Samuelson – (B) Malthus -
(C) Adam Smith - (D) Fisher - 233. Who is the author of 'The pure theory of public Expenditure'.
' ' (A) Lutz - (B) Samuelson -
(C) Keynes - (D) Robbins –
234. Who explained the law of increasing state activities?
?
(A) Musgrave - (B) Rostow -
(C) Pryor - (D) Wagner - 235. Who said "The increase in public expenditure is due to increase in income."
" "
(A) Keynes - (B) Wagner - (C) Breton - (D) None of these -
37 | P a g e
236. Who gave the Growth-oriented theory of public expenditure?
?
(A) Peacock-Wiseman - - (B) Rostow and Musgrave -
(C) Wagner - (D) Pryor - 237. 'Displacement effect' is related to:
' ' (A) Peacock-Wiseman - - (B) Rostow and Musgrave - (C) Wagner - (D) None of these - 238. What should the government do in public expenditure during inflation?
?
(A) should increase it -
(C) should decrease it -
(B) Both (A) and (B) - (A) (B)
(D) None of these - 239. During the unemployment, public expenditure in:
: (A) should be increase - (C) should be decrease - (B) Both (A) and (B) - (A) (B) (D) None of these - 240 "The very best of all plans of finance is to spend little." Who says?
" , " (A) J.B. Say - . . (B) Dalton -
(C) Marshall - (D) Fisher – 241. Who among the following is the author of the book 'Public Finance'?
' ' ?
(A) Dalton - (B) Marshall -
(C) Robbins - (D) Hicks-
242. 'Fixed expenditure' is:
(A) Expenditure on defence -
(B) Expenditure on road lights -
(D) None of these -
38 | P a g e
243. Variable expenditure is:
:
(A) Expenditure on postal services -
(B) Expenditure on education -
(C) Expenditure on defence -
(D) Both (A) and (B) - (A) (B)
244. What is the effect of increase in public expenditure on the saving capacity of the people?
(A) Increases - (B) Decreases -
(C) Remains unchanged - (D) None of these - 245. What is the effect of increase in public expenditure on the efficiency of the people.
(A) Increases - (B) Decreases -
(C) Remains constant - (D) All of the above - 246. Expenditure on MGNREGA is:
:
(D) None of these - 247. Which of the following is a non-plan expenditure?
- ?
(A) Salaries payment - (B) Interest payment -
(C) Subsidies – (D) All of the above - 248. Which of the following is a plan expenditure?
?
(A) Loan payment -
(B) Interest payment -
(C) Construction of roads and bridges -
249. The comparative cost theory of international trade has been given by: -
:-
(A) Adam smith - (B) David Ricardo - (C) Gottfried Haberler - (D) Heckscher Ohlin -
39 | P a g e
250. ultimately ----- was replaced by the --------on 1st January 1995: -
1 1995 ----- -------- : - (A) GATS, WTO - ,
(B) WTO, GATT - ,
(C) GATT, WTO - ,
(D) IMF, GATT - , 251. The theory of absolute cost advantage is given by: -
: -
(A) David Ricardo - (B) Adam smith -
(C) Taylor – (D) Ohlin and Heckscher- 252. The theory of mercantilism Propagates: -
: -
(A) Encourages imports and exports - (B) Encourages exports and discourages imports
- (C) Discourages exports and imports - (D) Discourages exports and encourages imports - 253. The theory of Absolute cost advantage is based on doctrine of 'Laissez fair' which means: -
' 'Laissez fair'' : -
(A) Let make freely -
(B) Freedom of enterprise - (C) Freedom of commerce -
(D) All of the above - 254. The theory of relative factor endowments is given by: -
: -
(A) Ohlin and Heckscher - (B) Taylor - (C) Ricardo – (D) Mill –
255. Foreign trade, ------- is an exchange of capital, goods and services across borders of territories. ,-------- , - (A) International – (B) National - (C) Both A and B - A B (D) None of the above -
40 | P a g e
256. Two countries can gain from foreign trade if-
-
(A) Cost ratio are different -
(B) Tariff rates are different - (C) Price ratio are different -
(D) Both (A) and (C) - (A) (C)
257.To increase exports a developing country must-
- (A) Improve quality of goods - (B) Decrease the value of currency - (C) Import cheap labour - (D) Both (A) and (B) - (A) (B)
258. The largest item in India's import list is-
-
(A) Consumer goods - (B) Machinery - (C) Petroleum – (D) Computer – 259. The theory explaining trade between two countries is called-
-
(A) Comparative advantage -
(B) Comparative bargain - (C) Comparative trade -
(D) Comparative returns -
260. A country can have an increased surplus in its balance of trade as a result of ..........
............ (A) Declining imports and rising exports -
(B) Higher tariffs imposed by its trading partners - (C) An increase in domestic inflation -
(D) An increase in capital inflow -
261.The main guard of International Trade is-
-
(A) IMF - .. (B) IBRD - . ... (C) WTO - (D) IFC - ...
41 | P a g e
262. ECGC is related to-
.... -
(A) Export promotion -
(B) Export financing and insurance -
(C) Export quality certification -
(D) Publication of export statistics -
263.The objective of establishing trade point is:
:
(A) countries exchanging import-export - - -
(B) countries exchanging import-export information - - -

(C) Exchange Centre for foreign banking trade - -
(D) Hub of collecting customs -
264. In the last few years with reference to India's foreign trade which of the following statement is true?
?
(A) Import has decreased -
(B) Export has decreased -
(C) Imports have decreased but exports have increased -
(D) Both import and export have increased - 265. From which cash crop of India receives the maximum foreign exchange earnings by way of export?
?
(A) Jute – (B) Tobacco -
(C) Tea – (D) Coffee - 266. According to smith ‘‘vent for surplus’’ approach is applicable in-
'' '' -
(A) In developed countries -
(B) In underdeveloped countries - (C) In developing countries -
42 | P a g e
267. According to comparative advantage theory, international trade will not take place if –
, -
(A) One country is efficient in production of both goods
-
(B) One country is inefficient in production of both goods
-
(C) Opportunity cost of two products are different in both countries
- - (D) Opportunity cost of two products are same in both countries
- 268. International trade contributes and increases the world .......
....... (A) Population - (B) Inflation -
(C) Economy – (D) Trade barriers - 269. Free international trade maximizes world output through………..
……….. (A) Countries reducing various taxes imposed
-
(B) Countries specializing in production of goods they are best suited for
- (C) Perfect competition between countries and other special regions
- (D) The diluting the international business laws and conditions between countries
- 270. Trade between two countries can be useful if cost ratios of goods are -
- (A) Undetermined - (B) Decreasing -
(C) Equal - (D) Different –
271. International trade and domestic trade differ because of……...
............ (A) Different government policies -
(B) Immobility of factors - (C) Trade restrictions -
(D) All of the above - 272. Government policy about exports and imports is called-
-
(A) Commercial policy - (B) Fiscal policy -
(C) Monetary policy - (D) Finance policy -
43 | P a g e
273. Which of the following is international trade-
-
(A) Trade between countries -
(B) Trade between regions - (C) Trade between provinces -
(D) Both (B) and (C) - (B) (C)
274. Which is not an advantage of international trade-
-
(A) Export of surplus production -
(B) Import of defence material -
(C) Dependence on foreign countries - (D) Availability of cheap raw materials - 275. If Japan and Pakistan start free trade difference in wages in two countries will
........ (A) Increase - (B) Decrease - (C) No effect - (D) Double - 276. Foreign trade creates among countries:
:
(A) Conflicts – (B) Cooperation -
(C) Hatred – (D) Both (A) and (B) - (A) (B)
277. Net exports equals:
(A) Exports × Imports - ×
(B) Exports + Imports - +
(C) Exports – Imports - –
(D) Exports of services only -
278. A tariff -
-
(A) Increases the volume of trade -
(B) Reduces the volume of trade -
(C) Has no effect on volume of trade -
(D) Both (A) and (C) - (A) (C)
44 | P a g e
279. The terms of trade of developing countries are generally unfavourable because-
-
(A) They export primary goods - (B) They import value added goods - (C) They export few goods - (D) Both (A) and (B) - (A) (B)
280. What would encourage trade between two countries?
?
(A) Different tax system -
(B) Quality control -
(C) Reduced tariffs -
(D) Fixing import quota -
281. This is an advantage of foreign trade:
:
(A) We can preserve our natural resources - (B) New technology comes to the country -
(C) People need not go abroad -
(D) We can get foreign currencies - 282. International trade and domestic trade differ because of?
?
(A) Trade restrictions -
(B) Immobility of factors - (C) Different government policies -
(D) All of the above - 283. What would encourage trade between two countries?
?
(A) Different tax system -
(B) Frontier checks -
(C) National currencies -
(D) Reduced tariffs - 284. It is drawback of free trade-
-
(A) Prices of local goods rise -
(B) Government loses income from custom duties -
(C) National resources are underutilized -
(D) Both (A) and (B) - (A) (B)
45 | P a g e
285. It is drawback of protection-
-
(A) Consumers have to pay higher prices -
(B) Producers get higher profits -
(C) Quality of goods may be affected -
(D) All of the above - 286. In foreign trade protection policy means-
-
(A) Restrictions on exports -
(B) Restriction on transfer of foreign exchanges -
(C) Restrictions on imports -
(D) All of the above - 287. ………reffers to the tax imposed on imports.
.......... (A) Imported tax - (B) Tariffs -
(C) Subsidies - (D) Import quotas - 288. A voluntary export restraint is the opposite form of....
.....
(A) Import quotas - (B) International Tariffs -
(C) Subsidies – (D) Dumping -
289. ……. is a group of countries agree to abolish all trade restriction and barriers?
…… (A) European Economic Community -
(B) Economic Union -
(C) Custom union -
(D) Free trade area - 290. In international trade, the full form of NAFTA is-
, -
(A) National American free trade agreement - (B) North Asian free trade agreement - (C) New anti-tariff free trade agreement - (D) North American free trade agreement -
46 | P a g e
291. AFTA is-
AFTA -
(A) ASEAN free trade area -
(B) American free trade area -
(C) Asian free trade area -
(D) Agreement for free trade area - 292. ………was established by a multilateral treaty of 23 countries in 1947.
……… 1947 23 (A) WTO - (B) UN -
(C) GATT – (D) NAFTA – 293. Tariffs are taxes imposed on ……..
…….. (A) Imported products - (B) Exported products -
(C) Hazardous goods - (D) Surplus goods -
294. Tariff result in a decrease in consumer surplus because-
-
(A) The price and the quantity consumed of the protected good increases
-
(B) The price and the quantity consumed of the protected good decreases
-
(C) The price of the protected good increases and quantity consumed decreases
-
(D) The price of the protected good decreases and quantity consumed increases
-
295. International trade forces domestic firms to become move competitive in terms of?
?
(A) The introduction of new products -
(B) Product design and quality - (C) Product price -
(D) All of the above - 296. Dumping refers to

(A) Buying goods at low prices abroad and selling at higher prices locally
- (B) Expensive goods selling for low prices
- (C) Reducing tariffs- (D) Sale of goods abroad at low price below their cost and higher price in domestic market
-
47 | P a g e
297. Transportation cost of trade affects: -
:-
(A) Pattern of trade -
(B) Boundaries between tradable and non-tradable goods - - (C) Global supply chains - (D) All of the above - 298. Which of the following trade policies limit specified quantity of goods to be imported at one tariff rate?

?
(A) Quota - (B) Import tariff -
(C) Specific tariff - (D) All of the above - 299. Which of the following policies permits a specified quantity of goods to be imported at one tariff rate and applies a higher tariff rate to imports this quantity?
?
(A) Tariff quota - (B) Import tariff -
(C) Specific tariff - (D) All of the above - 300. Free trade is based on the principle of?
?
(A) Comparative advantage -
(B) Comparative scale -

economics b.a. part-i, paper-subsidiary

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