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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

22.

What would encourage trade between two countries?

A.	Different tax system	B.	Quality control
C.	Reduced tariffs	D.	Fixing import quotax

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

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

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

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

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.

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

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

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