International trade refers to
A Trade within a country
B Exchange of goods between states
C Exchange of goods and services between countries
D Barter system
International trade involves cross-border exchange of goods and services.
Adam Smith’s theory of international trade is based on
A Comparative advantage
B Absolute advantage
C Opportunity cost
D Factor endowment
Adam Smith argued countries trade based on absolute cost advantage.
Absolute advantage exists when a country
A Produces all goods cheaply
B Produces a good at lower cost than others
C Has more population
D Exports more goods
Lower cost production gives absolute advantage.
Comparative advantage theory was given by
A Adam Smith
B David Ricardo
C Heckscher
D Keynes
Ricardo explained gains from trade even without absolute advantage.
Comparative advantage is based on
A Absolute cost
B Opportunity cost
C Labour theory of value
D Capital intensity
Trade depends on relative opportunity costs.
International trade benefits countries by
A Increasing dependence only
B Promoting specialization and efficiency
C Reducing output
D Increasing inequality only
Specialization improves global efficiency.
Balance of Payments (BoP) records
A Only exports
B Only imports
C All economic transactions with rest of world
D Only capital flows
BoP includes current and capital transactions.
Current account includes
A Capital transfers
B Trade in goods and services
C Foreign investment
D Loans
It records trade, income, and transfers.
Capital account records
A Export of goods
B Import of services
C Foreign investment and loans
D Remittances
Capital flows affect ownership of assets.
BoP deficit implies
A Exports exceed imports
B Imports exceed exports
C Balanced trade
D Zero capital flow
More payments than receipts cause deficit.
Exchange rate refers to
A Price of goods
B Price of one currency in terms of another
C Interest rate
D Inflation rate
Exchange rate determines currency value.
Appreciation of currency means
A Fall in currency value
B Rise in currency value
C Trade deficit
D Inflation
Stronger currency buys more foreign currency.
Depreciation of currency makes exports
A Costlier
B Cheaper
C Unchanged
D Impossible
Cheaper exports boost competitiveness.
Fixed exchange rate system is determined by
A Market forces
B Government intervention
C IMF only
D WTO
Government fixes currency value.
WTO deals with
A Monetary stability
B Trade rules and disputes
C Development finance
D Exchange rates
WTO regulates global trade.
IMF mainly focuses on
A Trade promotion
B Financial stability and balance of payments support
C Infrastructure finance
D Poverty alleviation
IMF assists countries facing BoP crises.
World Bank provides
A Short-term loans
B Development finance and technical assistance
C Trade rules
D Exchange rate support
World Bank funds long-term development projects.
India became a member of WTO in
A 1947
B 1991
C 1995
D 2000
WTO replaced GATT in 1995.
GST stands for
A Global Sales Tax
B General Services Tax
C Goods and Services Tax
D Government Sales Tax
GST unified indirect taxes in India.
Main objective of GST is to
A Increase tax burden
B Create one nation, one tax
C Reduce exports
D Increase inflation
GST simplified tax structure.
Inflation refers to
A Fall in price level
B Rise in general price level
C Increase in output
D Increase in savings
Inflation reduces purchasing power.
Cost-push inflation is caused by
A Excess demand
B Increase in production cost
C Excess money supply
D Tax reduction
Higher costs raise prices.
Demand-pull inflation occurs due to
A Fall in demand
B Excess demand over supply
C Fall in money supply
D High unemployment
Excess demand pushes prices up.
Unemployment means
A People not working by choice
B People willing but unable to find work
C Children population
D Retired persons
It measures job-seeking without work.
Climate change affects economy by
A Improving productivity
B Increasing disasters and uncertainty
C Reducing inequality
D Increasing savings
Climate risks disrupt livelihoods.
Sustainable Development Goals (SDGs) were adopted in
A 2000
B 2005
C 2015
D 2020
SDGs replaced MDGs in 2015.
SDGs aim to be achieved by
A 2025
B 2030
C 2040
D 2050
2030 Agenda guides global development.
Economy of Himachal Pradesh is mainly based on
A Heavy industry
B Agriculture and tourism
C Mining
D IT services
Natural beauty supports tourism; agriculture supports livelihoods.
Major cash crop of Himachal Pradesh is
A Rice
B Wheat
C Apple
D Cotton
Apple cultivation is a major income source.
Hydropower potential of Himachal Pradesh is high due to
A Plains
B Desert climate
C Himalayan rivers
D Coastal location
Rivers provide hydropower resources.
Tourism in Himachal Pradesh contributes by
A Increasing unemployment
B Generating income and employment
C Reducing infrastructure
D Increasing poverty
Tourism supports services and jobs.
Rural development in Himachal Pradesh focuses on
A Urbanization only
B Agriculture, roads, and employment
C Heavy industry
D Mining
Infrastructure and livelihoods are priorities.
Employment generation in Himachal Pradesh is supported by
A IT parks only
B Tourism and horticulture
C Heavy manufacturing
D Mining
These sectors absorb local labour.
State government schemes aim at
A Reducing welfare
B Inclusive development
C Increasing inequality
D Export promotion only
Schemes focus on social and economic welfare.
Which sector has highest growth potential in Himachal Pradesh?
A Mining
B Heavy industry
C Tourism
D Petrochemicals
Natural attractions drive tourism growth.
Balance of payments crisis in India occurred in
A 1980
B 1985
C 1991
D 2000
Foreign exchange crisis led to reforms.
IMF assistance usually comes with
A No conditions
B Structural adjustment programs
C Export subsidies
D Trade restrictions
IMF loans require policy reforms.
World Bank focuses more on
A Short-term stabilization
B Exchange rate management
C Long-term development projects
D Trade disputes
It funds infrastructure and social projects.
GST is an example of
A Direct tax
B Indirect tax
C Progressive tax
D Regressive tax
GST is levied on consumption.
Inflation affects poor the most because
A They save more
B Fixed incomes lose purchasing power
C They hold assets
D They benefit from price rise
Prices rise faster than incomes.
Climate change mitigation includes
A Renewable energy use
B Fossil fuel expansion
C Deforestation
D Resource depletion
Clean energy reduces emissions.
Trade deficit occurs when
A Exports exceed imports
B Imports exceed exports
C Capital inflow is high
D Reserves increase
More imports than exports create deficit.
Exchange rate flexibility helps in
A Trade restriction
B External balance adjustment
C Inflation increase
D Capital flight only
Flexible rates correct BoP imbalances.
WTO principle of MFN means
A Special treatment to one country
B Trade embargo
C Protectionism
D Equal treatment to all members
MFN ensures non-discrimination.
IMF headquarters is located in
A Geneva
B Washington D.C.
C New York
D Paris
IMF is headquartered in Washington D.C.
World Bank headquarters is located in
A Geneva
B London
C Paris
D Washington D.C.
Both IMF and World Bank are in Washington D.C.
A major challenge for Himachal Pradesh economy is
A Over-industrialization
B Environmental sustainability
C Capital surplus
D Labour shortage
Ecological balance is critical in hilly regions.
Tourism development must be sustainable to
A Maximize short-term profits
B Protect environment and livelihoods
C Increase pollution
D Reduce employment
Sustainability preserves long-term benefits.
Current economic issues require policies that ensure
A Growth without equity
B Equity without growth
C Inclusive and sustainable growth
D Trade surplus only
Balanced policies address multiple challenges.
Development economics today integrates
A Only growth theories
B Only trade theories
C Economic, social, and environmental dimensions
D Price theory only
Modern development is multidimensional.