International Economics - 2

LIST OF ATTEMPTED QUESTIONS AND ANSWERS



Multiple Choice Multiple Answer
Question
Objectives of the IMF
Correct Answer
Stability in the BOP , Stability in internal price level , Stability in the exchange rate
Your Answer
Stability in the exchange rate , Stability in the BOP , Stability in internal price level

True/False
Question
If production takes place at the optimum level price will be not be equal to the minimum average cost of production
Correct Answer
False
Your Answer
False

True/False
Question
In case of exports, agriculture has surpassed gems & jewellery in terms of a higher rate of increase, though lesser in absolute figure.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Why is it so common to give protection to infant industry?
Correct Answer
Because the new firms are weak and vulnerable , Unless the conditions are conducive , expansion in output cannot be assured , To discourage the imports
Your Answer
Because the new firms are weak and vulnerable , Unless the conditions are conducive , expansion in output cannot be assured , To discourage the imports

Select The Blank
Question
Current account balance is important in determining nation's________
Correct Answer
External Investment position
Your Answer
Internal Investment position

True/False
Question
The reigns of policy formulation & operations of the World Bank are in the hands of the Board of Directors.
Correct Answer
False
Your Answer
False

True/False
Question
IMF or World Bank want trading counties to follow a uniform code of classification to emphasis their importance on the world economy.
Correct Answer
False
Your Answer
False

Select The Blank
Question
Under perfect competition same price for ________ will prevail in the product market and price of factors of production also will be same for same varieties
Correct Answer
Identical commodities
Your Answer
Identical commodities

Select The Blank
Question
________ hypothesis advocates globalisation, that it accelerates the country's growth process
Correct Answer
Convergence
Your Answer
Bhagwati

Multiple Choice Single Answer
Question
In case of tangency between price ration & production possibility cure - post Globalisation - is achieved at a parallel but lower level, then it shows that …
Correct Answer
Production capabilities of both the goods have declined
Your Answer
The commodity prices have declined

Multiple Choice Single Answer
Question
Apart from the gold or foreign curreny, the quota that each country had to pay was based on ..
Correct Answer
Size of GDP
Your Answer
Size of GDP

Multiple Choice Multiple Answer
Question
Balance of payment includes …
Correct Answer
Current Account , Capital Account , Reserve Movements
Your Answer
Current Account , Capital Account , Reserve Movements

True/False
Question
Production equilibrium is realised at the point of tangency between the production possibility curve and factor price ratio.
Correct Answer
True
Your Answer
True

Match The Following
Question
Correct Answer
Your Answer
REGULATOR FOR INSURANCE SECTOR
EFFECTIVE WATCH DOG
EFFECTIVE WATCH DOG
HOLDING COMPANY &FOUR SUBSIDIARIES.
GIC & New india,united,oriental,national
GIC & New india,united,oriental,national
THE POTENTIAL &SCOPE WHICH IS STILL UNDER TAPPED
PERSONAL LINE OF INSURANCE & HEALTH CARE AREA.
PERSONAL LINE OF INSURANCE & HEALTH CARE AREA.
RECENT DEVELOPMENT BY GOVT OF INDIA
SET UP AN AGRICULTURE INSURANCE COMPANY OF INDIA.
SET UP AN AGRICULTURE INSURANCE COMPANY OF INDIA.

Multiple Choice Multiple Answer
Question
Why is it that factor price equalization is not found frequently in countries?
Correct Answer
Presence of factor cost
Your Answer
Presence of factor cost , There is no perfect competition in the market , In absence of commodity price equalization factors cannot move towards equality

True/False
Question
The inception of WTO dates back to 1995
Correct Answer
True
Your Answer
True

True/False
Question
In multiversion scheme to ensure serailizibility it is necessary that a transaction should be able to determine easily and quickly which version of the data item should be read.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
What was the main reason for rise in price during 1970's?
Correct Answer
rise in petroleum prices
Your Answer
rise in petroleum prices

Multiple Choice Single Answer
Question
Globalisation started taking root in the world economy since the
Correct Answer
Eighties
Your Answer
Seventies

Multiple Choice Single Answer
Question
When a particular transaction never makes progress because the data item it wants to lock is already locked and other transaction are also waiting for the same data item then it is said to be
Correct Answer
Starvation
Your Answer
Alive Lock

True/False
Question
Wait-die scheme is based on preemptive technique.
Correct Answer
False
Your Answer
True

Multiple Choice Single Answer
Question
According to the Absolute advantage theory why will there be any kind of difference in cost of the same product in two countries?
Correct Answer
Due to productivity
Your Answer
Lack of technology

Multiple Choice Multiple Answer
Question
What are the problems being faced by the developing countries due to reduced trade barriers?
Correct Answer
entering of giants in the market , stiff competition to the local trades
Your Answer
entering of giants in the market , stiff competition to the local trades , Demand sensitivity of the product

True/False
Question
Developed countries come closer through trade because consumption patterns are know to each other
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
What is reason behind many Latin American and African countries forming a union?
Correct Answer
These countries have put a common front against the imperial power
Your Answer
These countries have put a common front against the imperial power

True/False
Question
Wound wait and wait die schemes avoids starvation.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
A transaction may release locks, but may not obtain any new locks this phase is called as
Correct Answer
Shrinking Phase
Your Answer
Growing phase

Match The Following
Question
Correct Answer
Your Answer
Real protection
An industry takes into account the higher prices a producer has to pay on imported inputs owing to imposition of tariffs
The proportion of total costs accounted for by imported inputs
Tariff barriers
Specific tariff
Specific tariff
Non Tariff barrier
Quotas
Quotas
Effective protection
The proportion of total costs accounted for by imported inputs
An industry takes into account the higher prices a producer has to pay on imported inputs owing to imposition of tariffs

Multiple Choice Multiple Answer
Question
Invisible Trade comprises …
Correct Answer
Travel & Transport , Insurance , Interest Payments
Your Answer
Travel & Transport , Insurance , Transfer Payments & Gifts

Multiple Choice Multiple Answer
Question
Identify the assumptions of H-O theory?
Correct Answer
Technology in both the country are same , Production function of a commodity is same
Your Answer
Technology in both the country are same , Efficiency in production , Production function of a commodity is same

Select The Blank
Question
Apart from international reserves, ________ also widens the monetary base of the central bank.
Correct Answer
Net domestic assets
Your Answer
Net domestic assets

True/False
Question
In case of multiple peg, the domestic currency changes propotionately to any change in exchange rates of nations of the basket
Correct Answer
False
Your Answer
True

Multiple Choice Single Answer
Question
The institutional aspect of reforms refer to
Correct Answer
It's proper & effective implementation
Your Answer
Working beyong bureacratic compliance

Multiple Choice Multiple Answer
Question
Why is tariff imposed?
Correct Answer
Because it is the major source of revenue , To attain self-sufficiency in the country , To give protection to the domestic countries
Your Answer
Because it is the major source of revenue , To attain self-sufficiency in the country , To give protection to the domestic countries

Multiple Choice Multiple Answer
Question
What are the main highlights of Product life cycle?
Correct Answer
These are normally labor scarce countries , Producers use more capital than labor , Money is spent in research and development to innovate new ways of using capital intensive technique
Your Answer
These are normally labor scarce countries , Producers use more capital than labor , Money is spent in research and development to innovate new ways of using capital intensive technique

Multiple Choice Single Answer
Question
Day to day functioning & policy implementation of the IMF are the responsibilities of the
Correct Answer
Executive Directors
Your Answer
Executive Directors

Multiple Choice Single Answer
Question
The rate of increase in the India's trade deficit as seen is highest in the year -
Correct Answer
1998-99
Your Answer
1998-99

Multiple Choice Single Answer
Question
Does a big population mean a big labor force?
Correct Answer
It is always compared in relation to the other factors
Your Answer
It is always in comparison with capital

Select The Blank
Question
Due to Export Subsidy selling price abroad ________ the home market price
Correct Answer
Will be less than
Your Answer
Will be less than

True/False
Question
The AMS completely believed & worked on lines of poverty eradication & rural upliftment.
Correct Answer
False
Your Answer
True

Multiple Choice Multiple Answer
Question
How dose a country determine the imports and exports items of a particular country?
Correct Answer
By comparing hourly output per labor , The country with least average cost would be ideal
Your Answer
By comparing the labor capital ratio , By comparing hourly output per labor , The country with least average cost would be ideal

True/False
Question
According to SITC codification scheme, in the import or the export list, any food item was given the code 00 & crude petroleum was given 03.
Correct Answer
False
Your Answer
True

Multiple Choice Single Answer
Question
Pegged Exchange rate was initially advocated by
Correct Answer
IMF
Your Answer
IMF

Select The Blank
Question
Complete specialization would mean that a country will produce only one product and ________ production for other products.
Correct Answer
exchange surplus
Your Answer
exchange surplus

Select The Blank
Question
Pegged Exchange Rate came to be known as ________.
Correct Answer
Official Exchange Rate
Your Answer
Official Exchange Rate

Select The Blank
Question
________was introduced by the IMF in 1967
Correct Answer
SDR
Your Answer
SDR

Select The Blank
Question
The main obsticle experienced in tha way of regional blocks is that after growing for 10-15 years ________ reaches a plateau
Correct Answer
internal trade expansion
Your Answer
internal trade expansion