Q. Under a fixed exchange rate system, ____________________are official changes in the value of a country's currency relative to other currencies.
✅ Correct Answer: (A)
devaluation
International Economics MCQs and Notes
Q. _________________ is an open position in the market with an expectation of gains through the fluctuations.
✅ Correct Answer: (B)
speculation
Q. ______________means the measures adopted for avoiding risks.
✅ Correct Answer: (A)
hedging
Q. The foreign exchange rate is NOT
✅ Correct Answer: (B)
rate at which of one commodity expresses in terms of another.
Q. Net barter Terms of Trade is defined as
✅ Correct Answer: (A)
px/pm
Q. ____________states that at constant commodity prices, an increase in the quantity of one factor increases the production of the commodity intensive in this factor and reduces the output of the other commodity which is intensive in the constant factor.
✅ Correct Answer: (C)
rybczynski theorem, and
Q. _______________states that international trade will bring about equalization in the returns to homogeneous factors across countries, even without their physical movement.
✅ Correct Answer: (B)
stolper-samuelson theorem,
Q. It is drawback of protection:
✅ Correct Answer: (B)
Producerrs get higher profits