1. 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

2. The scope of international trade and division of labour is limited by

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

4. 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)

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

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

7. For a closed economy having no foreign trade which one of the following is correct?

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

9. The optimum tariff is at a point where the elasticity of the offer curve is

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

11. 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)

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

13. 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)

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

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

16. An Optimum tariff

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

18. 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?

19. Denoting the price of capital and labour by PK and PL respectively an d co untries by A and B, if P P P P K L A K L FH G
I. J - FH G
I. J B

20. Which one of the following is a possible compromise between the fixed and the flexible exchange rate systems?

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

22. Which one of the following is non-debt flow of capital between countries?

23. 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)

24. 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?

25. 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: