40+ Introduction to International Trade MCQ | (Free Resource) Business Economics

21. The gain from trade is maximum if the international terms of trade are _________ .
a) nearer to the internal terms of trade of trading partner
b) nearer to the domestic terms of trade of importing country
c) equal to exporting country
d) none of the above.

22. An offer curve differs from _________ .
a) usual demand and supply curves
b) usual demand curve
c) usual supply curve
d) none of the above

23. International trade increases the welfare of _________ .
a) all participating countries
b) only exporting country
c) only importing country
d) only developed countries

24. International trade results in __________ .
a) all of the given below
b) innovations
c) reduction in costs
d) diversifies consumption

25. Cultural changes due to international trade are __________ .
a) positive and negative
b) only positive
c) only negative
d) none of the above

26. The concept of gross barter terms of trade was introduced by _______ .
a) Frank Taussig
b) Alfred Marshall
c) Francis Edgeworth
d) John S. Mill

27. The concept of income terms of trade was introduced by _________ .
a) Graeme S Dorrance
b) Frank W Taussig
c) David Ricardo
d) Francis Edgeworth

28. Utility terms of trade was introduced by _________ .
a) Jacob Viner
b) Adam Smith
c) J. S. Mill
d) Frank Taussig

29. The concept of offer curves was introduced by __________ .
a) A. Marshall and F Edgeworth
b) Adam Smith and David Ricardo
c) JohnS. Mill and John M Keynes
d) None of the above

30. Terms of trade will be favourable to a country when __________ .
a) all of the given below
b) its exports have inelastic demand
c) its imports have elastic demand
d) its supply of exports is elastic

Answer: 21)nearer to the internal terms of trade of trading partner 22)usual demand and supply curves 23)all participating countries 24)all of the given below 25)positive and negative 26)Frank Taussig 27)Graeme S Dorrance 28)Jacob Viner 29)A. Marshall and F Edgeworth 30)all of the given below