XII Economics Set 2 Chap 6-12

Trade between two countries is known as ………….trade

• External

• Internal

• Inter-regional

• Home

Which of the following factors influence trade?

• The stage of development of a product

• The relative price of factors of productions.

• Government.

• All of the above.

International trade differs from domestic trade because of................

• Trade restrictions

• Immobility of factors

• Different government policies

• All the above

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

• Some nations prefer to produce one thing while others produce another

• Resources are not equally distributed among all trading nations

• Trade enhances opportunities to accumulate profits

• Interest rates are not identical in all trading nations

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

• absolute cost

• comparative cost

• Factor endowment theory

• none of these

Exchange rates are determined in..............

• money market

• foreign exchange market

• stock market

• capital market

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

• Fixed exchange rate

• Flexible exchange rate

• Constant

• Government regulated

Net export equals ……

• Export x Import

• Export + Import

• Export - Import

• Exports of services only

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

• Jacob Viner

• G.S.Donens

• Taussig

• J.S.Mill

Terms of Trade of a country show ……………

• Ratio of goods exported and imported

• Ratio of import duties

• Ratio of prices of exports and imports

• Both (a) and (c)