1. Which one of the following pairs is NOT correctly matched?

2. If the price elasticity of demand for exports is zero, then exports in local currency will

3. 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)

4. Which of the following does not form a part of the foreign exchange reserve of India?

5. In a word, with only two goods, X and Y, and the full employment of factors, a rise in the price of a commodity, X, leads to

6. Match List-I with List-II and select the correct answer using the codes given below the lists:
List-I List-II (a) Free trade area 1. No restriction on trade and factor movement (b) Customs union 2. Trade is free and no customs duties (c) Common market 3. No customs duties; duties on non-members (d) Economic union 4. Advanced stage of integration Codes: (a) (b) (c) (d)

7. The balance of payments of a country is in equilibrium when the

8. The main objective of the World Trade Organization is to secure among others

9. 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.

10. Which one of the following pairs is correctly matched?

11. If the sum of the elasticities of the exports and imports is less than one, any devaluation will further aggravate the deficit in the BOP. Who has given this view?

12. 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)

13. The three offer curves viz., 0, 1, 2 of country cut the offer curve of  at points a, b, c which is equivalent to internatonal terms of trade as shown in the diagram below: From the above graph, it can be easily deduced that

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

15. Assertion (A): Heckscher-Ohlin theory invalidates the classical theory of comparative costs.
Reason (R): Heckscher-Ohlin theory goes behind the comparative cost theory.

16. Match List-I with List-II and select the correct answer using the codes given below the lists:
List-I List-II (a) Supply side of 1. David Ricardo International Trade (b) Demand side of 2. Bastable and International Trade Alfred Marshall (c) Opportunity cost of 3. G. Haberler International Trade (d) Real cost theory 4. Alfred Marshall of International Trade and Edgeworth Codes: (a) (b) (c) (d)

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

18. An import tariff in a labour surplus economy distributes income in favour of

19. 'Most Favoured Nation Clause' under GATT requires

20. 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:

21. Consider the following statements : Foreign Portfolio Investment in India means.
1. investment by a foreign firm to start a subsidiary.
2. investment by a foreign firm to take over an existing firm
3. foreign investment in shares.
4. foreign investment in bonds. Which of the above statements are correct?

22. 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:

23. The above graph shows different effects of tariffs in partial equilibrium. Which one of the following indicates the revenue effect of a tariff equal to PP1 per unit?

24. Where the foreign offer curves has an elasticity of one, the optimum tariff will be

25. Over-valuation of currency is NOT desirable, when