NCERT Class 11 Chapter 11 Business Studies International Business 1 MCQ

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1. Bilateral arrangements instituted to restrain the rapid growth of exports of specific manufactured goods, are called

A. Administered protection

B. Voluntary export restraints

C. Imposed export restraints

D. None of the above

2. Which of the following is the criteria for approving an IDA credit?

A. Poverty test

B. Performance test

C. Project test

D. All of the above

3. Which type of elasticity plays a crucial role in determining international trade?

A. Elasticity of demand

B. Price Elasticity of demand

C. Income elasticity of demand

D. Cross elasticity of demand

4. Quotas of all IMF members are reviewed at intervals of

A. Five years

B. Not more than five years

C. Three years

D. Two years

5. The Theory of Relative Factor Endowments is given by

A. David Ricardo

B. Adam Smith

C. F W Taussig

D. Ohlin and Hecksher

6. The theory of comparative cost advantage is given by

A. David Ricardo

B. Adam Smith

C. F W Taussig

D. Ohlin and Heckscher

7. Interest payments on loans borrowed abroad are recorded in

A. Capital Account

B. Current Accounts

C. Errors and Omission Section

D. Official Reserve Account

8. ____________ is the payment method most often used in International Trade which offers the exporter best assurance of being paid for the products sold internationally.

A. Bill of Lading

B. Letter of Credit

C. Open Account

D. Drafts

9. Key controllable factors in global marketing are:

A. Government policy and legislation

B. social and technical changes

C. marketing activities and plans

D. all of the above.

10. A tariff fails to restrict imports when the demand for imports is

A. Perfectly price elastic

B. Price inelastic

C. Of unitary price elasticity

D. None of the above

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11. International Trade is most likely to generate short-term unemployment in:

A. Industries in which there are neither imports nor exports

B. import-competing industries

C. Industries that sell to domestic and foreign buyers.

D. Industries that sell to only foreign buyers

12. What was the first economic theory of international trade to be developed?

A. The theory of mercantilism

B. The theory of comparative advantage

C. The theory of absolute advantage

D. The Heckscher-Ohlin theory

13. According to the credit tranche policy of the IMF, credit is made available in

A. Five tranches, each equivalent to 20% of country's qouta

B. Four tranches, each equivalent to 25% of country's quota

C. Ten tranches, each equivalent to 10% of country's SDRs

D. Four tranches, each equivalent to 25% of country's SDRs

14. Which one is not international Institution?

A. IMF

B. IDA

C. IBRD

D. TRAI

15. A member in IMF, has a reserve tranche position in the IMF to the extent that its quota exceeds

A. The borrowings of its currency in IMF

B. The IMP's holdings of its currency in the special disbursement account

C. The IMF's holding of its currency in the General Resources

D. None of the above

16. Under which system of valuation, SDRs were valued in terms of 16 currencies, which were assigned specific weights?

A. Standard basket valuation

B. Standard charted valuation

C. Various currencies valuation

D. None of the above

17. Which of the following is true about the Board of Governors of IMF?

A. They meet once a year

B. They may vote by mail at other times except the annual meeting

C. Both (A) and (B)

D. They are elected annually

18. Balance of Payment can be made favourable if

A. Exports are increased

B. Imports are increased

C. Devaluation of money

D. (A) and (C).

19. How many countries have been undertaken to lend to IMF if there is need to cope with an impairment of the International monetary system?

A. 11

B. 50

C. 15

D. 20

20. How is comparative advantage defined?

A. You produce the things you are especially good at, and buy from others, the goods you are less efficient in producing.

B. To produce and consume all goods without trade.

C. How the world actually works.

D. Globalization, growing economic linkages among countries.

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21. What are the four factor endowments?

A. National resources, labor, physical capital and human capital

B. Types of technology

C. Material inputs used up in the process of production

D. International differences in climate

22. The Heckscher- Ohlin model is principally focused on what aspect of economics?

A. International trade

B. Supply and demand

C. Normative economics

D. Production possibility frontier

23. A no-trade world will have which of the following characteristics:

A. Countries will have same relative endowments of production factors

B. Consumers across countries will have identical and homogenous tastes

C. There will be no distortions or externalities

D. all of the above

24. The first phase of globalization started around 1870 and ended with ….

A. World War I

B. World War II

C. The Establishment of GATT

D. In 1913 when GDP was High

25. Transportation cost of trade affects:

A. pattern of trade

B. boundaries between tradable and non-tradable goods

C. Global supply chains

D. all of the above