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12th Standard Economics International Economics English Medium Free Online Test One Mark Questions with Answer Key 2020 - 2021

12th Standard

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Economics

Time : 00:20:00 Hrs
Total Marks : 20

    Answer all the questions

    20 x 1 = 20
  1. 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)

  2. Components of balance of payments of a country includes

    (a)

    Current account

    (b)

    Official account

    (c)

    Capital account

    (d)

    All of above

  3. Benefits ofFDI 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

  4. Absolute Cost Advantage was developed by

    (a)

    Adam Smith

    (b)

    Ricardo

    (c)

    T.R.Hicks

    (d)

    Doltan

  5. International trade was developed by

    (a)

    Adam Smith and Ricardo

    (b)

    Eli Heckscher and Bertil Ohlin

    (c)

    Ricardo and A.C. Pigou

    (d)

    Adam Smith and Ohlin

  6. _______ means value of exports is more than that of imports.

    (a)

    Unfavorable trade

    (b)

    International trade

    (c)

    Favorable trade

    (d)

    External trade

  7. _________ is one of the types of BoP disequilibrium.

    (a)

    Income terms of trade

    (b)

    Devaluation

    (c)

    Structural

    (d)

    FDI

  8. A country's _________ also determines the exchange rate.

    (a)

    Terms of trade

    (b)

    Trade

    (c)

    Policy issue

    (d)

    Internal trade

  9. Which of the following is not an another term used for Internal Trade?

    (a)

    ‘domestic trade’

    (b)

    ‘home trade’

    (c)

    ‘external trade;

    (d)

    ‘intra-regional trade’.

  10. Find the missing flow of concept of H-O Theorem. Abundance of skilled labour → specialisation → ………?……..→ exchange for goods are services produced by countries with abundance of unskilled labour

    (a)

    import

    (b)

    export

    (c)

    devaluation

    (d)

    factor endowment

  11. Find the incorrect representation. Net Barter Terms of TradeTn= (Px / Pm) x 100

    (a)

    Tn = Net Barter Terms of Trade

    (b)

    Px = Index number of export prices

    (c)

    Pm = Index number of import prices

    (d)

    Tn = Gross Barter Terms of Trade

  12. The principal items on the …………. include imports of goods and services, transfer payments to foreigners, lending to foreign countries.

    (a)

    BoT side

    (b)

    debite side

    (c)

    credit side

    (d)

    BoP side

  13. Find the incorrect one with respect to Indian rupee devaluation

    (a)

    On 29th September, 1949

    (b)

    On 6th June, 1966

    (c)

    On 1st July, 1991

    (d)

    On 9st August, 1990

  14. Suppose the exchange rate between Indian Currency and US Dollar is Rs.1= $65. If it changes to Rs.1 = $55, the value of which currency increased and decreased?

    (a)

    both currency value will increase

    (b)

    both currency value will decrease

    (c)

    Indian currency value will increase and US Dollar Value will decrease

    (d)

    Indian currency value will decrease and US Dollar Value will increase

  15. The trade balance of a country is represented by

    (a)

    the difference between imports and exports

    (b)

    the total imports and exports

    (c)

    the report between imports and exports

    (d)

    the difference between income and expenditure

  16. If a nation has an open economy it means that the nation

    (a)

    Allows private ownership of capital

    (b)

    Has flexible exchange rates

    (c)

    Has fixed exchange rates

    (d)

    Conducts trade with other countries

  17. According to the principle of absolute advantage; India should

    Country Tons of steel DVDs
    China 80 40
    India 20 20
    (a)

    Export steel

    (b)

    Export DVDs

    (c)

    Export steel and DVDs

    (d)

    There is no basis for gainful specialization and trade

  18. With international trade, what would be the maximum number of DVDs that India would be willing to export to China in exchange for each ton of steel

    Country Tons of steel DVDs
    China 80 40
    India 20 20
    (a)

    One DVD

    (b)

    Two DVDs

    (c)

    Three DVDs

    (d)

    Four DVDs

  19. In the classical model of Ricardo, the direction of trade is determined by:

    (a)

    absolute advantage

    (b)

    comparative advantage

    (c)

    physical advantage

    (d)

    which way the wind blows

  20. The factor endowment model of international trade was developed by

    (a)

    Adam Smith

    (b)

    David Ricardo

    (c)

    John Stuart Mill

    (d)

    Eli Heckscher and Bertil Ohlin

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