1. Dusenberry was of the opinion that less developed countries will have serious and adverse effect on their balance of payments due to

2. Under which of the following conditions will there be the possibility of trade between two countries whose factor endowments are identical?

3. Which of the following items were responsible for most of the increase in international liquidity since World War-II?

1. Gold
2. Dollars
3. Other Convertible Currencies
4. SDRs
Select the correct answer using the codes given below:

4. Consider the following statements: Under the gold-standard inflow of gold from the deficit to the surplus nation results in
1. a fall in the interest rate in the surplus nation.
2. a fall in the interest rate in the deficit nation.
3. an outflow of capital from surplus to deficit nation.
4. an outflow of capital from deficit to surplus nation. Of the above statements:

5. A country is said to be relatively well-endowed with capital if the

6. Consider the following statements: The equivalance between the effects of a tariff and a quota which limits imports by the same amount depends on the assumption that,
1. there are competitive condiditons prevailing abroad.
2. there is perfect competition among quota holders.
3. there is free competition within the domestic import competing industry. Of these statements

7. Consider the following statements:
I. the offer-curve is a straight line.
1. high tariff rates can improve terms of trade.
2. low tariff rates can improve terms of trade.
3. absence of tariff can improve terms of trade. Of these statements:

8. Which one of the following pairs is not correctly matched?

9. The country is likely to be better off after export-ledgrowth provided that

10. Which one of the following pairs is not correctly matched.

11. In respect of the production possibility curve under increasing opportunity costs given above, consider the following statements:
1. The production possibility curve is not indentical with price curve as in the case of constant costs.
2. There would be complete specialisation of a co untry in a single com m o dity in a tw ocommodities and two countries model. Which of the statements is/are correct?

12. Assertion (A): Special Drawing Rights (SDRs) have the characteristics of an international currency.
Reason (R): SDRs were introduced to increase international liquidity

13. Match List-I with List-II and select the correct answer using the codes given below the lists:
List-I List-II (Assumption) (Implication) (a) No transport costs 1. Commodity prices same in trade in the two countries (b) Perfect competition 2. Optimal allocation of in factor markets factors (c) Factor intensities 3. Techniques of producdiffer between tion same in the two goods goods (d) Production functions 4. Techniques of producsame in both tion same in the two countries countries Codes: (a) (b) (c) (d)

14. Which one of the following is the major characteristic of foreign direct investment (FDI)?

15. In a three-country two-commodity model, countries being of unequal sizes, the domestie exchange ratio are as under: Country Domestic Exchange Ratio
1 2a : 1b
2 1a : 1b
3 1a : 2b As per this model, the stability in international trade is most likely at the international terms of trade of

16. Which one of the following transactions represents a credit entry in the current account of a country's balance of payments?

17. Assertion (A): The gains from trade are determined by the terms of trade.
Reason (R): The gains from trade depend on the differences in comparative cost ratios.

18. In Heckscher-Ohlin theory of international trade, the most important source of difference in relative commodity prices between nations is a difference in

19. Which one of the following items is NOT included in the current account of India's balance of payments?

20. Consider the following statements : Under the Gold standard system, represented
1. Common unit value.
2. International means of payment
3. A store of value Which of these statements are correct?

21. Match List-I with List-II and select the correct answer using the codes given below the lists:
List-I List-II (a) Unrequited receipts 1. Gifts, reparations received from foreigners (b) Accomodating 2. Lending, borrowing finance and gold transfer (c) Transfer items 3. Commercial imports and exports (d) Autonomous items 4. Currency transfer by monetary authority Codes: (a) (b) (c) (d)

22. Match List-I with List-II and select the correct answer using the codes given below the lists:
List-I List-II (a) Buying and selling of 1. Pegging Operation home currency in the foreign exchange market by government or its authorised agency (b) Charging different prices 2. Dumping Operation in different markets for an internationally traded commodity (c) The price of imports 3. Free on board (f.o.b.) paid by local purchasers, which is more than their normal value (d) Local producers of an 4. Cost, insurance and export good receiving freight (c.i.f.) only the price of the good as it leaves the country. Codes: (a) (b) (c) (d)

23. Assertion (A): The open-economy Keynesian multiplier is less than the closed economy Keynesian multiplier.
Reason (R): The marginal propensity of import is always greater than the marginal propensity to consume.

24. Which one of the following pair is not correctly matched?

25. Which of the following statements is not correct in respect of the balance of payments of a country?