Q. Which among the following are differences between Balance of Trade and Balance of Payment?
✅ Correct Answer: (D)
all the above
International Economics MCQs and Notes
Q. ______________ is a summary statement of all economic transactions of the residents of a nation with the residents of Rest of the World (ROW) during a particular period of time.
✅ Correct Answer: (D)
net exports
Q. law of one price prevails when
✅ Correct Answer: (D)
all the above
Q. Which among the following is true with regard to the PPP theory?
✅ Correct Answer: (D)
all the above
Q. Pure theory of international trade is termed so because
✅ Correct Answer: (C)
monetary approaches are absent in them
Q. The exchange rate system that is followed in India is
✅ Correct Answer: (C)
managed float system
Q. Recardo’s Law of Comparitive advantage is based on
✅ Correct Answer: (A)
labour theory of value
Q. A key effect of devaluation is that it
✅ Correct Answer: (A)
makes the domestic currency cheaper relative to other currencies.
Q. __________ is the deliberate downward adjustment in the official exchange rate, reduces the currency's value.
✅ Correct Answer: (A)
devaluation