Q. When demand is perfectly inelastic, an increase in price will result in: A decrease in total revenueAn increase in total revenueNo change in total revenueA decrease in quantity demanded Answer: An increase in total revenue

Q. Under free exchange markets the rate of foreign exchange is determined by: Balance of Payments theoryMint par theoryPurchasing power parity theoryNone of the above Answer: Balance of Payments theory

Q. For measuring the changes in the price level of the country, which among the following index number is used Cost of living index numberProduction index numberSecurity Price index numberWhole sale price index number Answer: Whole sale price index number

Q. The new world Trade organization (WTO), which replaced the GATT came into effect from____ 1ST January 19911st January 19951st April 19941st May 1995 Answer: 1st January 1995

Q. Terms of trade that relate to the Real Ratio of international exchange between commodities is called: Real cost terms of tradeCommodity terms of tradeIncome terms of tradeUtility terms of trade Answer: Income terms of trade

Q. What is meant by Autarky in international trade? Monopoly in international tradeImposition of restrictions in international tradeRemoval of all restrictions from international tradeThe idea of self sufficiency and no international trade by a country Answer: The idea of self sufficiency ...

Q. In the short run, when the output of a firm increases, its average fixed cost: Remains constantDecreasesIncreasesFirst decreases and then rises Answer: Decreases

Q. Normally a demand curve will have the shape: HorizontalVerticalDownward slopingUpward sloping Answer: Downward sloping