Q. Normally the demand curve will have a _______________ shape. Upward sloping Downward sloping Vertical Horizontal Answer: Downward sloping

Q. ‘Infant industry argument’ in international trade is given in support of: Granting ProtectionFree tradeEncouragement to export oriented small and tiny industriesNone of the above Answer: Granting Protection

Q. Which of the following is also known as International Bank for Reconstruction and Development? Asian Development BankWorld BankReserve Bank of IndiaInternational Monetary Fund Answer: World Bank

Q. Who propounded the opportunity cost Theory of international trade? RicardoMarshallHeckscher & OhlinHaberler Answer: Haberler

Q. Which among the following is not a function of International Monetary Fund? It serves a medium term and long term credit institution’It provides a mechanism for improving short term balance of payments position’It provides machinery for international consultations’It provides reservoir of ...

Q. The supply of a good refers to: Stock available for saleTotal stock in the warehouseActual Production of the goodQuantity of the good offered for sale at a particular price per unit of time Answer: Quantity of the good offered for sale at a particular price per unit of time

Q. Price and demand are positively correlated in case of: NecessitiesComfortsGiffen goodsLuxuries Answer: Giffen goods

Q. When cross elasticity of demand is a large positive number, one can conclude that: The good is normalThe good is inferiorThe good is a substituteThe good is a complement Answer: The good is a substitute

Q. Irrespective of price, Sofia always spends Rs. 100 a week on ice cream, we conclude that: Elasticity of demand is 0Elasticity of demand is 1Elasticity of demand is infiniteThe law of demand has been violated Answer: Elasticity of demand is 1

Q. Law of demand shows relation between: Income and price of commodityPrice and quantity of a commodityIncome and quantity demandQuantity demanded and quantity supplied Answer: Price and quantity of a commodity

Q. If quantity demanded is completely unresponsive to changes in price, demand is: InelasticUnit elasticElasticPerfectly inelastic Answer: Perfectly inelastic

Q. The following are causes of shift in demand EXCEPT the one: Change in incomeChange in priceChange in fashionChange in prices of substitutes Answer: Change in price