Business Environment And International Business - Practice Test

[#431] In the two good Ricardian Trade Model, complete specialization in production occurs in fee trade equilibrium because

(A) the production possibility frontier satisfies increasing opportunity cost

(B) there are diminishing returns to the factor of production

(C) there are increasing returns to the factor of production

(D) the production possibility frontier satisfies constant opportunity cost

Correct Answer

(D) the production possibility frontier satisfies constant opportunity cost

[#432] Consider the following statements. Assertion (A): Under FEMA, the receiver of laundered money is to be made culpable, instead of sender/ distributor. Reason (R): FEMA differs from the earlier exchange regulation Act FERA with regard to penalties and punishment in case of violation of the Act.

(A) (A) is correct but (R) is not correct

(B) (A) and (R) both are correct but (R) is not the right explanation of (A)

(C) (A) and (R) both are correct and (R) is the right explanation of (A)

(D) (A)and (R) both are incorrect

Correct Answer

(C) (A) and (R) both are correct and (R) is the right explanation of (A)

[#433] Match the following. List-I (Concepts) List-II (Features) a. Free trade 1. Its value is fixed in gold b. International liquidity 2. Removes tariffs and non-tariff barriers c. Regional economic integration 3. Aggregate stock of internationally acceptable assets d. Special drawing rights 4. It permits trading partner's mutual gains from trade of goods and services

(A) a-4, b-3, c-2, d-1

(B) a-3, b-1, c-4, d-2

(C) a-2, b-1, c-4, d-3

(D) a-3, b-4, c-1, d-2

Correct Answer

(A) a-4, b-3, c-2, d-1

[#434] Which of the following is/are not the objective of IMF?

(A) Removal of disparities in international payment

(B) Imposition of trade tariff

(C) Imposition of exchange control

(D) Both B and C

Correct Answer

(D) Both B and C

[#435] Consider the following statements.

(A) Fiscal policy is composed of policy decisions relating to entire financial structure of the government including tax revenue, public expenditures, loans, transfers, debt management, budgetary deficit, etc. that is taken care of by Ministry of Finance

(B) The objective of monetary policy is to ample liquidity in the market so that price stability and economic growth are taken care of

(C) Both A and B

(D) None of the above

Correct Answer

(C) Both A and B

Business Environment And International Business - Study Mode

[#431] In the two good Ricardian Trade Model, complete specialization in production occurs in fee trade equilibrium because

Correct Answer

Correct Answer

Correct Answer

[#434] Which of the following is/are not the objective of IMF?

Correct Answer

[#435] Consider the following statements.

Correct Answer