QN1: Which of the following can be renewed indefinitely?
a) Patent
b) Trademark
c) Copyright
d) all of the above
Answer
Answer: b) Trademark
QN2: This kind of risk applies to a host government’s future acts that might restrict a subsidiary’s payment to the parent firm.
a) general instability risk
b) ownership/control risk
c) operation risk
d) transfer risk
Answer
Answer: d) transfer risk
QN3: ___ was considered to be the main source of wealth by the mercantilists.
a) Diamonds
b) Gold
c) Money
d) People
Answer
Answer: c) Money
QN4: This is not a characteristic of “centrally planned economies.”
a) a communist philosophy
b) an active government role in economic planning
c) bureaucratic political/economic systems
d) market-oriented economy
Answer
Answer: d) market-oriented economy
QN5: Trade theories assume that trade is:
a) unilateral
b) bilateral
c) multilateral
d) Can’t say
Answer
Answer: b) bilateral
QN6: Which of the following events changed the economic relations and co-operation of nations worldwide
a) World War I
b) World War II
c) World War III
d) Gulf War
Answer
Answer: b) World War II
QN7: Which of these is not an organisation formed after the Bretton Woods Conference.
a) IMF
b) WTO
c) IBRD
d) None of the above
Answer
Answer: b) WTO
QN8: Sweden has adopted this economic system.
a) capitalism
b) socialism
c) communism
d) modified communism
Answer
Answer: b) socialism
QN9: The currency of this organisation is SDRs.
a) IMF
b) WTO
c) IBRD
d) None of the above
Answer
Answer: a) IMF
QN10: The following organisation provides conditional loans to countries with BoP difficulties.
a) IMF
b) WTO
c) IBRD
d) GATT
Answer
Answer: a) IMF
QN11: An economic union requires:
a) uniform tariff rates among member countries
b) uniform tariffs against outsiders
c) removal of restrictions on movement of factors of production
d) harmonization of the national economic policies
Answer
Answer: d) harmonization of the national economic policies
QN12: When did India seek loan/ s from IMF?
a) 1966
b) 1991
c) Both a and b
d) 1972
Answer
Answer: b) 1991
QN13: Which institutions have been criticised because it is felt that they promote interests of developed countries?
a) IMF & WTO
b) IMF & World Bank
c) World Bank and WTO
d) IMF & UNCTAD
Answer
Answer: b) IMF & World Bank
QN14: IMF & UNCTAD
a) IMF
b) World Bank
c) GATT
d) WTO
Answer
Answer: b) World Bank
QN15: This is not a nontariff barrier.
a) documentation
b) quota
c) product inspection
d) countervailing duties
Answer
Answer: d) countervailing duties
QN16: Globalisation is studied under several themes. Which of the following is not one of them?
a) Political
b) Economic
c) Cultural
d) Natural
Answer
Answer: d) Natural
QN17: Developed countries are
a) largest recipients and largest sources of FDI
b) largest recipients and moderate sources of FDI
c) moderate recipients and largest sources of FDI
d) moderate recipients and moderate sources of FDI
Answer
Answer: a) largest recipients and largest sources of FDI
QN18: Which of these helps in measuring economic growth of a nation?
a) GDP growth rate
b) Population
c) Human Development Index
d) Lifestyle development index
Answer
Answer: a) GDP growth rate
QN19: Which of these have voting rights based on economic size of the nation?
a) IMF
b) UNCTAD
c) GATT
d) WTO
Answer
Answer: b) UNCTAD
QN20: The principle of relative advantage states that a country should produce a product with the ___ comparative advantage.
a) least
b) greatest
c) equal
d) somewhat higher
Answer
Answer: b) greatest
QN21: Which of the following does not represent BRIC nations?
a) Brussels
b) Russia
c) India
d) China
Answer
Answer: a) Brussels
QN22: Which of these is an example of preferential trade area?
a) NAFTA
b) CAFTA
c) SAPTA
d) LAFTA
Answer
Answer: a) NAFTA
QN23: This type of intellectual property refers to know-how
a) patent
b) trademark
c) copyright
d) trade secret
Answer
Answer: d) trade secret
QN24: Which of these is not a type of regional economic co-operation/ trade bloc?
a) NAFTA
b) ASEAN
c) EU
d) SACU
Answer
Answer: d) SACU
QN25: According to the principle of absolute advantage, a country should import a commodity that can be only produced at a ___ cost than can other nations.
a) Higher
b) lower
c) same
d) cost is irrelevant
Answer
Answer: a) Higher
QN26: How many countries are members of NAFTA?
a) 2
b) 3
c) 5
d) 8
Answer
Answer: b) 3
QN27: Balance of payments is
a) Difference between value of imports and exports
b) Difference between volume of imports and exports of services
c) Difference between volume of imports and exports
d) Difference between value of imports and exports of services
Answer
Answer: a) Difference between value of imports and exports
QN28: IMF engages in deficit financing when ___ of a country is negative.
a) Government Debt
b) Revenue
c) Balance of payments
d) Balance of trade
Answer
Answer: c) Balance of payments
QN29: The main aim of this economic system is social welfare and equality of all.
a) Capitalism
b) Socialism
c) Democracy
d) Totalitarian
Answer
Answer: c) Democracy
QN30: This kind of quota is the most restrictive.
a) absolute quota
b) tariff quota
c) voluntary quota
d) VER
Answer
Answer: a) absolute quota
QN31: Which of the agreements monitors and regulates trade in services?
a) TRIPS
b) TRIMS
c) GATT
d) GATS
Answer
Answer: d) GATS
QN32: Which country is considered to offer highest risk to intellectul property?
a) US
b) EU
c) India
d) China
Answer
Answer: d) China
QN33: Which index is considered to be an informal substitute of PPP?
a) Big Mac
b) Big Apple
c) Big Nano
d) Big Donald
Answer
Answer: a) Big Mac
QN34: Which of these is true about dumping?
a) Anti-dumping duties may apply
b) It is not legal
c) It offers economic benefit to organisation engaged in dumping
d) All of the above
Answer
Answer: a) Anti-dumping duties may apply
QN35: Many members of the European Union members have adopted a single currency (i.e, the euro) in order to form this kind of economic cooperation.
a) free trade area
b) customs union
c) common market
d) economic union
Answer
Answer: d) economic union
QN36: This type of economic system is followed by Japan?
a) Capitalism
b) Socialism
c) Market socialist
d) Market capitalist
Answer
Answer: a) Capitalism
QN37: Which of these is not a hard currency?
a) Euro
b) Yen
c) US $
d) Yuan
Answer
Answer: d) Yuan
QN38: ___ is the difference between total imports and exports of goods
a) Balance of trade
b) Balance of payments
c) Balance of revenue
d) Balance of volume trade
Answer
Answer: a) Balance of trade
QN39: ___ is the agreement which monitors implementation of intellectual property rights in WTO member nations
a) TRIPS
b) TRIMS
c) GATT
d) GATS
Answer
Answer: a) TRIPS
QN40: This type of trade barriers is easiest to deal with.
a) Tariffs
b) nontariff barriers
c) private barriers
d) international barriers
Answer
Answer: a) Tariffs
