Classical

December 2013 - Paper2

46:  
Match the following List - I with List - II and select the correct answer:
 
List - I                                                                      List - II
 
a)Comparitive Cost Theory of International Trade

 
(i) Gottfried Harberler
b) International Trade Theory of Opportunity Cost

 
(ii) J. S. Mill
c) Factor Endowment Theory of Opportunity Cost

 
(iii) David Ricardo
d) Doctrine of Reciprocal Demand

 
(iv) Hecksher - Ohlin

 

A.

(iii) (ii) (iv) (i)

B.

(i) (iiil (ii) (iv)

C.

(iii) (i) (iv) (ii)

D.

(ii) (i) (iv) (iii)

 
 

Option: D

Explanation :


47:  
Identify the one, from the following, which is not a type of disequilibrium in the balance of payments of a country:
A.

Cyclical disequilibrium

B.

Seculardis equilibrium

C.

Structural disequilibrium

D.

Sectoral disequilibrium

 
 

Option: A

Explanation :


48:  
The participants who take advantage of different exchange rates in different markets are
A.

Spectaculors

B.

Arbitrageurs

C.

Hedgers

D.

Investors

 
 

Option: B

Explanation :


49:  
Assertion (A): The liability of the oprion buyer is limited in the currency options market. 
 
Reason (R) : Option buyer need not exercise the option if the exchange rate is not favourable for him.
A.

(R) is correct and (A) is wrong.

B.

(A) is correct and (R) is wrong.

C.

Both (A) and (R) are correct.

D.

Both (A) and (R) are wrong.

 
 

Option: C

Explanation :


50:  
An MNC that maintains a balance between the home market and host market oriented policies is
A.

Ethnocentric firm

B.

Polycentric firm

C.

Geocentric firm

D.

None of the above

 
 

Option: D

Explanation :




Suggest an improvement