Related Mcqs:

1. The amount by which a nation’s import of goods (or goods and services) exceeds its export of goods or goods and services is________________?

   A. Trade surplus
   B. Trade deficit
   C. Trade bloc
   D. None

2. The export of goods (or goods and services) of a nation less its imports of goods (or goods and services)__________________?

   A. Trade Balance
   B. Trade deficit
   C. Trade surplus
   D. None

3. A section in a nation’s international balance of payments which records its export and import of goods and services, its net investment income, and its net transfers ?

   A. Current account
   B. Fixed account
   C. Saving account
   D. Capital account

4. In the Px = export price index, Pm = import price index, Qx = export quantity index,and Qm = import quantity index. Developing countries tend to maintain that their commodity term of trade have declined over the long run suggesting that _________ has declined?

   A. Px/Pm
   B. Pm/Px
   C. (Pm/Px)Qm
   D. (Px/Pm)Qx

5. Restriction on import or export of specified or all goods with a foreign nation by the Government is called ?

   A. Embargo
   B. Contraband
   C. Ban
   D. Restriction

6. How is termed the government’s order to prevent the arrival or departure of merchant ships or to restrict import or export of specified or all goods with a foreign nation ?

   A. Embargo
   B. Contraband
   C. Ban
   D. Restriction

7. When supply exceeds demand, sellers must lower prices to stimulate sales, when demand exceeds supply, prices increase as buyers compete to buy goods. What this theory is called in economics?

   A. Cost push theory
   B. Supply and Demand theory
   C. Fundamental theory
   D. Ricardo’s theory

8. Micheal Roemer’s three-sector model shows that growth in the booming export sector I- reduces the price of foreign exchange II- retards other sectors’ growth by reducing incentives to export other commodities III- reduces incentives to replace domestic goods for imports IV- raises factor and input prices for non-booming sectors ?

   A. I and III only
   B. II and III only
   C. I, II and III only
   D. I, II , III only IV

9. Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to ____ tin and an export quota agreement would require that member countries _________ their export of tin?

   A. purchase; decrease
   B. purchase; increase
   C. sell; increase
   D. sell; decrease

10. If a nation fitting the criteria for the large nation model imposes an import tariff ?

    A. the domestic price of the product will increase by more than the tariff itself
    B. The domestic price of the product will increase by the same amount as the tariff
    C. The domestic price of the product will increase by less than the tariff
    D. None of the above