1. Which of the following is international trade: A. Trade between provinces B. Trade between regions C. Trade between countries D. (b) and (c) of above Answer: Option C 2. Theory of comparative advantage was presented by: A. Adam Smith B. Ricardo C. Hicks D. Arshad Answer: Option B 3. Which is NOT an advantage of international trade: A. Export of surplus production B. Import of defence material C. Dependence on foreign countries D. Availability of cheap raw materials Answer: Option C 4. If Japan and Pakistan start free trade, difference in wages in two countries will: A. Increase B. Decrease C. No effect D. Double Answer B 5. Trade between two countries can be useful if cost ratios of goods are: A. Equal B. Different C. Undetermined D. Decreasing Answer B 6. Modern theory of international trade is based n the views of: A. Robbins and Ricardo B. Adam Smith and Marshall C. Heckcsher and Ohlin D. Saleem and Kareem Answer C ...
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