1. Match List-I with List-II and select the correct answer using the codes given below the lists
List-I List-II (a) Hamilton-List 1. Trade creation and Trade diversion effects (b) Marshall-Lerner 2. Infant-Industry argument (c) F.Y. Edgeworth 3. Elasticity approach (d) Jacob Viner 4. Impoverishing growth Codes: (a) (b) (c) (d)

2. The infant industry argument is often advocated in the context of

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

4. Assertion (A): Factor price equalisation theorem deals with the effect of trade on factor prices.
Reason (R): Trade in goods has no effect on factor prices.

5. 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

6. The flexible exchange rate has a number of advantages. Which one of the following is not to be considered as such an advantage?

7. Assume that the nominal rate of tariff on imports of final commodity is 30%. The nominal rate of traiff on the imported inputs is 10% and the ratio of imported inputs to the value of the final commodity is 50%. Then the effective rate of tariff will be

8. Consider the following diagram showing OH and OF as the offer curves of two countries, H and F. The diagram indicates that

9. 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)

10. Match List-I with List-II and select the correct answer using the codes given below the lists
List-I List-II (a) Classical theory of 1. David Ricardo comparative cost advantage (b) Vent for surplus theory 2. G. Haberler (c) Theory of opportunity 3. J.S. Mill cost (d) Theory of reciprocal 4. Adam Smith demand Codes: (a) (b) (c) (d)

11. Direct control refers to

12. 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?

13. For the Heckscher-Ohlin theory of trade to be valid, the relative factor endowments of two countries should be

14. Assertion (A) : Free international trade necessarily lowers the real wage of the scarce factor of production in terms of any good.
Reason (R) : If the real wage declines in terms of every good, real income must suffer regardless of the tastes and expenditure patterns of the labourers as consumers.

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. Customs union always leads to

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

18. Hot money refers to the

19. Which of the following pairs of GATT rounds and the associated years are correctly matched?

1. First Round 1948
2. Kennedy Round 1964-67
3. Tokyo Round 1973-79
Select the correct answer using the codes given below:

20. The rate of exchange at equilibrium is one that maintains

21. A tariff will not have any effect on revenue if the duty imposed is

22. Which one of the following represents capital account convertibility of a currency?

23. Gains in trade results from

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

25. If the demand of the domestic consumers is infinitely elastic and the supply of the foreign producer is perfectly inelastic, then the whole of the tariff will