1st Year Principles of Economics Chapter 12 TestInternational Trade

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

1. "International balance of payment is all that transaction for which either foreign exchange is spent or received". This definition is stated by:

   1. Marshall

   2. Samuelson

   3. Ricardo

   4. Hicks

2. Balance of visible goods of a country mean:

   1. Quantity of imports & exports

   2. Value of imports & exports

   3. Value of imported & exported goods and services

   4. Value of imported & exported services

3. Because of devaluation of currency of a country, its exports:

   1. Decrease

   2. Increase

   3. Remains constant

   4. Go on changing

4. "It is the systematic record of all economic transactions of a country with rest of the world". This definition is stated by:

   1. Prof Marshall

   2. Prof Ricardo

   3. Prof Kindleberger

   4. Prof Adam Smith

5. One of the following is not advantage of international trade:

   1. Provision of necessities of life

   2. Imperfections of market

   3. Provision of necessities of defense

   4. Provision of medicines & machinery

6. Which one of the following is included in balance of trade:

   1. Visible goods

   2. Invisible goods

   3. Visible & invisible goods

   4. General goods

7. Balance of payment of a country is balanced when its:

   1. Receipts are more than payments

   2. Receipts are less than payments

   3. Receipts are equal to payments

   4. Payment are less than receipts

8. Balance of payments is annual statistical record of:

   1. Visible goods

   2. Invisible goods

   3. Foreign loans

   4. Visible and invisible goods

9. The difference between total receipts and total payment of country in a year is called:

   1. Balance of trade

   2. Balance of country

   3. Balance of payment

   4. Inflation

10. In balance of payment are included:

    1. Visible items

    2. Invisible items

    3. Visible and invisible items

    4. Material items