CSS :: International and National Trade
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21. |
"Terms of trade" between two countries refer to a ratio of: |
A. |
Export prices to import prices |
B. |
Currency values |
C. |
Exports to imports |
D. |
Balance of trade to balance of payments |
Answer: Option A
Explanation:
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22. |
What would encourage trade between two countries? |
A. |
Different tax system |
B. |
Quality control |
C. |
Reduced tariffs |
D. |
Fixing import quotax |
Answer: Option C
Explanation:
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23. |
It is drawback of protection: |
A. |
Consumers have to pay higher prices |
B. |
Producerrs get higher profits |
C. |
Quality of goods may be affected |
D. |
All of the above |
Answer: Option D
Explanation:
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24. |
It is drawback of free trade: |
A. |
Prices of local goods rise |
B. |
Government looses income from custom duties |
C. |
National resources are underutilized |
D. |
(a) and (b) of above |
Answer: Option B
Explanation:
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25. |
Gold standard means: |
A. |
Currency of the country is made of gold |
B. |
Paper currency is not used |
C. |
Currency of the country is freely convertible into gold |
D. |
(a) and (c) of above |
Answer: Option D
Explanation:
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26. |
Terms of trade of a country: |
A. |
Mean the trade agreement between trading countries |
B. |
Is another name of exchange ratio of two currencies |
C. |
Show the ratio between total export earnings and import bill of a country |
D. |
Are determined by the price index of export and import goods |
Answer: Option D
Explanation:
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27. |
Pakistan's terms of trade: |
A. |
Have risen over past few years |
B. |
Have fallen over past few years |
C. |
Always remain above 100 |
D. |
Are determined by federal govt. |
Answer: Option B
Explanation:
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28. |
Exchange value of Pak rupee against other currencies has fallen because: |
A. |
Our total exports are smaller |
B. |
Our imports are more than exports |
C. |
Exports are more than imports |
D. |
Pakistan does not produce gold |
Answer: Option B
Explanation:
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29. |
This is an advantage of foreign trade: |
A. |
We can preserve our natural resources |
B. |
New technology comes to the country |
C. |
People need not go abroad |
D. |
We can get foreign currencies |
Answer: Option B
Explanation:
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30. |
This is NOT an advantage of foreign trade: |
A. |
We can get gold from abroad |
B. |
New technology comes to the country |
C. |
We can import goods which are in short supply in Pakistan |
D. |
We can made best use of natural resources |
Answer: Option A
Explanation:
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