1. 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:

2. Which one of the following items is NOT included in the 'invisibles' on current account of the balance of payments of India?

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

4. 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)

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

6. One of the advantages of free trade is improvement in the distribution of income. Free trade thus results in some income redistribution by

7. 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)

8. 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

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

10. The automatic borrowing rights of a member of IMF are determined by

11. Direct control refers to

12. Customs union always leads to

13. 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

14. 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)

15. Consider the following statements: Under free trade
1. Prices of fertilizers will be lowered compared to world prices.
2. Consumption of fertilizers will increase.
3. Imports of fertilizers will be zero. Which of these statements are correct?"

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

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

19. 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

20. 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.

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

22. Which one of the following assumptions is the most important assumption in the Heckscher–Ohlin theorem of international trade?

23. 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

24. 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?

25. Assertion (A): The Ricardian theory of comparative costs is based on the labour theory of value.
Reason (R): Labour theory of value holds good in domestic trade, but breaks down when applied to international trade.