UGC NET Economics 2022 Unit 5: International Economics PYQs (English–Hindi)

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UGC NET ECONOMICS · 2022 · UNIT 5

International Economics PYQs
अंतरराष्ट्रीय अर्थशास्त्र के प्रश्न

December2021/June2022 merged · 8October2022
दिसंबर2021/जून2022 संयुक्त · 8अक्टूबर2022

Trade policy and integration
व्यापार नीति और एकीकरण

Question 2 / प्रश्न 2

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Arrange the following events in sequence (the oldest one being first) A. The Tokyo Round B. The Uruguay Round C. The Annecy Round D. The Dillon Round E. The Torquay Round
GATT rounds oldest first: A Tokyo; B Uruguay; C Annecy; D Dillon; E Torquay।

(a) C, E, D, B, A
(a) C, E, D, B, A
(b) E, C, A, D, B
(b) E, C, A, D, B
(c) C, E, D, A, B
(c) C, E, D, A, B
(d) E, C, D, A, B
(d) E, C, D, A, B
Answer & Explanation / उत्तर और व्याख्या
Answer: (c) C, E, D, A, B
उत्तर: (c) C, E, D, A, B

Explanation: Annecy 1949, Torquay 1950–51, Dillon 1960–61, Tokyo 1973–79, and Uruguay 1986–94give the order.

व्याख्या: Annecy 1949 → Torquay 1950–51 → Dillon 1960–61 → Tokyo 1973–79 → Uruguay 1986–94। क्रम C E D A B।

Balance of payments and exchange rates
भुगतान संतुलन और विनिमय दर

Question 32 / प्रश्न 32

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The "tequila effect" indicates:
Tequila effect किस crisis के contagion कोकहतेहैं?

(a) The spread of the 1994-95 Mexican crisis to other countries in Latin America
(a) 1994–95Mexicocrisis से Latin America।
(b) The spread of the 1997 crisis in Thailand to other countries in Asia
(b) 1997Thailand से Asia।
(c) The suprime crisis emerged in 2007 in the United State
(c) 2007USsubprime।
(d) The domestic debt crisis occurred in Argentina in 1989
(d) 1989Argentinadebt।
Answer & Explanation / उत्तर और व्याख्या
Answer: (a) The spread of the 1994-95 Mexican crisis to other countries in Latin America
उत्तर: (a) 1994–95Mexicocrisis से Latin America।

Explanation: Tequila contagion refers to the 1994–95Mexican crisis spreading across Latin America.

व्याख्या: Mexican peso crisis 1994–95 के regional financial spillovers tequila effect कहलाते हैं। Asian crisis अलग episode है।

Question 74 / प्रश्न 74

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Given below are two statements: Statement I: Devaluation always correct a chronic balance of payments deficit. Statement II: An expected devaluation leads specultive, capital outflows from domestic country. In the light of the above statements,
I Devaluation हमेशा chronic BOPdeficit ठीक करती; II expected devaluation से speculative capital outflow।

(a) Both statement I and statement II are true
(a) दोनों सही।
(b) Both statement I and statement II are false
(b) दोनों गलत।
(c) Statement I is true but statement II is false
(c) I सही II गलत।
(d) Statement I is false but statement II is true
(d) I गलत II सही।
Answer & Explanation / उत्तर और व्याख्या
Answer: (d) Statement I is false but statement II is true
उत्तर: (d) I गलत II सही।

Explanation: Devaluation need not cure deficits; expected depreciation can encourage capital outflows.

व्याख्या: Trade elasticities, pass-through, capacity और Jcurve के कारण I“always”false। Domestic currency weakening expected होतो foreign currency positions attractive हो सकती हैं, जिससे outflow pressure आती है।

Question 77 / प्रश्न 77

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Which of the following are correct? A. Current account includes merchandise export B. Current account do not includes merchandise export C. Current account includes invisible export D. Current account do not includes invisible export E. Current account includes both merchandise exports and imports and invisible exports and imports
Current account: A merchandise exports; B merchandise excluded; C invisibles exports; D invisibles excluded; E goods/services exports imports दोनों।

(a) A, B, and C only
(a) A, B, और C केवल
(b) A, C, and E only
(b) A, C, और E केवल
(c) A, D, and E only
(c) A, D, और E केवल
(d) C, D, and E only
(d) C, D, और E केवल
Answer & Explanation / उत्तर और व्याख्या
Answer: (b) A, C, and E only
उत्तर: (b) A, C, और E केवल

Explanation: The current account includes goods, services, primary income, and transfers.

व्याख्या: A C E सही। Current account goods, services, primary income और secondary income cover करता है। Capital/financial transactions अलग accounts हैं।

Trade theories
व्यापार सिद्धांत

Question 41 / प्रश्न 41

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Which of the following is correct? A. The gross barter terms of trade uses quantity index for imports and exports B. Both gross barter terms of trade and net barter terms of trade make use of the price index for imports and exports C. The net barter terms of trade uses price index for imports and export D. Both gross barter terms of trade and net barter terms of trade make use of the quantity index for imports and exports E. The gross barter terms of trade uses price index but the net barter terms of trade uses quantity index for imports and exports
TOT: A gross barter quantity indices; B both price indices; C net barter price indices; D both quantity; E gross price/net quantity।

(a) A and B only
(a) A और B केवल
(b) B and C only
(b) B और C केवल
(c) C and E only
(c) C और E केवल
(d) A and C only
(d) A और C केवल
Answer & Explanation / उत्तर और व्याख्या
Answer: (d) A and C only
उत्तर: (d) A और C केवल

Explanation: Gross barter terms use quantity indices; net barter terms use price indices.

व्याख्या: Gross barter=import quantity index/export quantity index। Net barter=export price index/import price index। इसलिए A, C सही।

Question 50 / प्रश्न 50

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Match List I with List II.
Trade concepts match करें।

ListI
सूचीI		 ListII
सूचीII
A Sizeintrade
आर्थिकआकार		 I Paul Krugman
क्रुगमैन
B Scale/monopolisticcompetition
पैमाना-अपूर्णप्रतिस्पर्धा		 II Mercantilists
वणिकवादी
C Technologygap
तकनीकीअंतर		 III M V Posner
पॉस्नर
D Zerosum
शून्ययोग		 IV Gravity model
गुरुत्वमॉडल
(a) IV III I II
(a) IV III I II
(b) IV I III II
(b) IV I III II
(c) III I IV II
(c) III I IV II
(d) III IV I II
(d) III IV I II
Answer & Explanation / उत्तर और व्याख्या
Answer: (b) IV I III II
उत्तर: (b) IV I III II

Explanation: The matches are gravity, Krugman, Posner, and mercantilist zero-sum reasoning.

व्याख्या: Gravity economic mass/distance; Krugman new trade scale; Posner technology gap; mercantilist trade as zero sum। AIV BI CIII DII।

Question 58 / प्रश्न 58

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In which stage of the product cycle model, the imitating country starts producing the product for domestic consumption?
Five-stage product cycle में imitator domestic production कबशुरू करता ?

(a) Stage III
(a) Stage III।
(b) Stage II
(b) Stage II।
(c) Stage I
(c) Stage I।
(d) Stage V
(d) Stage V।
Answer & Explanation / उत्तर और व्याख्या
Answer: (a) Stage III
उत्तर: (a) Stage III।

Explanation: Foreign domestic production begins in stage IIIof the specified five-stage trade cycle.

व्याख्या: Usual five-stage trade cycle में initial innovation और export growth के बाद third stage foreign imitation/import substitution आता है। Three-stage Vernon classification का numbering अलग है।

Question 87 / प्रश्न 87

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What does the result of the first empirical test of the Heckscher Ohlin model by Wassily Leontief find?
Leontief का first H–Oempiricaltest क्यापाता है?

(a) U.S. exports were less capital-intensive than U.S. imports
(a) US exports importsubstitutes से lesscapitalintensive।
(b) U.S. exports were more capital-intensive than U.S. imports
(b) US exports morecapitalintensive।
(c) U.S. exports were more human capital- intensive than U.S. imports
(c) केवल human capital पर test।
(d) All the above
(d) सभी।
Answer & Explanation / उत्तर और व्याख्या
Answer: (a) U.S. exports were less capital-intensive than U.S. imports
उत्तर: (a) US exports importsubstitutes से lesscapitalintensive।

Explanation: Leontief found US exports less capital-intensive than import-competing production.

व्याख्या: Capital-abundant US के exports का K/L import-competing production सेकम निकला, जिसे Leontief paradox कहा। Actual foreign imports की technology directly measure करना original test नहीं था।

Passage based questions
अनुच्छेद आधारित प्रश्न

Question 91 / प्रश्न 91

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What for globalisation has been blamed?
Passage में globalisation की criticism?

(a) Globalisation has neither increased efficiency nor opennes
(a) Efficiency/openness दोनों नबढ़े।
(b) Globalisation has increased both efficiency & openness
(b) दोनों बढ़ेबसइतना।
(c) Blobalisation has increased efficiency but not openness
(c) केवल efficiency बढ़े।
(d) Globalisation has not spreaded the benefits of increased efficiency and openess equitably to all nations
(d) Benefits सभी nations में equally नबँटें।
Answer & Explanation / उत्तर और व्याख्या
Answer: (d) Globalisation has not spreaded the benefits of increased efficiency and openess equitably to all nations
उत्तर: (d) Benefits सभी nations में equally नबँटें।

Explanation: The criticism concerns unequal sharing of globalisation gains, not denial of all gains.

व्याख्या: Criticism gains की unequal distribution पर है; passage efficiency/openness बढ़नेको deny नहीं करता।

Question 92 / प्रश्न 92

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Which of the following is incorrect?
FDIstocks पर कौन गलत ?

(a) The inward stock of FDI to developing countries is less than that of developed countries
(a) Developinginwardlower।
(b) The outward stock of FDI from developing countries is less than that of developed countries
(b) Developingoutwardlower।
(c) Both the inward stock of FDI to developing countries and outward stock of FDI from developing countries remained higher in developing countries than developed countries
(c) Developing के दोनों stocksdeveloped से higher।
(d) Both the inword stock of FDI to developing countries and outward stock of FDI from developing countries remained lower in developing countries than developed countries
(d) Developing के दोनों lower।
Answer & Explanation / उत्तर और व्याख्या
Answer: (c) Both the inward stock of FDI to developing countries and outward stock of FDI from developing countries remained higher in developing countries than developed countries
उत्तर: (c) Developing के दोनों stocksdeveloped से higher।

Explanation: The stated FDI ratios48%and17%are both below the developed-country benchmark.

व्याख्या: Given ratios48%और 17% दोनों 100 सेकम हैं; इसलिए “both higher”false। यहाँ stock को annual FDIflow नसमझें।

Question 93 / प्रश्न 93

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Which of the following reflects the most correct sense of the New International Economies of Scale (NIES)
International production sourcing कामुख्य point?

(a) All the parts and components of a product is manufactured in the host country only
(a) सभी parts एक hostcountry में।
(b) When all the parts and components of the product manufactured in the host country, it minimize production costs in each of the producing country
(b) सभी parts देशमेंबनानेसे globalcostminimum।
(c) Cheaper inputs from different countries are required to remain competitive
(c) Cheaperforeigninputscompetitiveness के लिए जरूरी हो सकते।
(d) The NIES is more concern about profit rather than to remain competitive
(d) Competitivenessirrelevant।
Answer & Explanation / उत्तर और व्याख्या
Answer: (c) Cheaper inputs from different countries are required to remain competitive
उत्तर: (c) Cheaperforeigninputscompetitiveness के लिए जरूरी हो सकते।

Explanation: Cross-country component sourcing can be necessary to remain competitive.

व्याख्या: Distributed component production costs reduce करती है; source के अनुसार सिर्फ extra profit choice नहीं, competitive survival के लिएभी हो सकती है।

Question 94 / प्रश्न 94

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During the investment period, if the higher yielding currencydepreciates against the lower yielding currency by a higher percentage than the positive interest differential then which of the following will occur?
High yield currency depreciation interest differential सेबड़ीहोतो carry trade?

(a) The investor will lose money
(a) Loss।
(b) The investor will earn profit
(b) Profit।
(c) The profit of the investor will remain unaffected
(c) Unaffected।
(d) None of the above
(d) कोई नहीं।
Answer & Explanation / उत्तर और व्याख्या
Answer: (a) The investor will lose money
उत्तर: (a) Loss।

Explanation: Exchange losses exceeding the interest advantage make the carry trade lose money.

व्याख्या: Borrowing currency में convert करने पर exchange-loss yield gain सेअधिकहोगा। Exact return compounding के लिए(1+i High)×FXchange/(1+i Low)compare करें; passage approximation loss बताती है।

Question 95 / प्रश्न 95

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Which of the following is true?
Passage के अनुसार सही poverty claim?

(a) Becuase of globalisation poverty has increased in all the countries of the world
(a) Globalisation सेहरदेश poverty बढ़ी।
(b) Because of globalisation poverty has reduced in all the countries of the world
(b) हरदेश poverty घटी।
(c) Without globalisation world poverty would probably be even more widespread
(c) इसकेबिना worldpoverty औरअधिक हो सकती।
(d) Without globalisation world poverty would probably be even less widespread
(d) इसकेबिनाजरूरकम होती।
Answer & Explanation / उत्तर और व्याख्या
Answer: (c) Without globalisation world poverty would probably be even more widespread
उत्तर: (c) इसकेबिना worldpoverty औरअधिक हो सकती।

Explanation: The passage makes a conditional global counterfactual, not a claim about every country.

व्याख्या: Passage conditional“probably more widespread”कहता है, हर country के लिए universal effect नहीं।

December2022 · 2March2023 · ShiftI
दिसंबर2022 · 2मार्च2023 · पालीI

Trade policy and integration
व्यापार नीति और एकीकरण

Question 23 / प्रश्न 23

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The birth of World Trade Organisation emerged from which round?
WTO किस negotiation round सेनिकला?

(a) Geneva
(a) Geneva
(b) Hong Kong
(b) Hong Kong
(c) Urgually
(c) Urgually
(d) Tokyo
(d) Tokyo
Answer & Explanation / उत्तर और व्याख्या
Answer: (c) Urgually
उत्तर: (c) Urgually

Explanation: The Uruguay Round led to the Marrakesh Agreement and WTO’s 1995start.

व्याख्या: Uruguay Round 1986–94 और Marrakesh Agreement 1994 ने WTO कीस्थापनाकी; operations1January 1995 से।

Question 39 / प्रश्न 39

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If the nominal tariff rate (t) on consumers of the final commodity is 10 percent; the ratio of the cost of the imported input to the price of the final commodity in the absence of tariffs a; = 0.8; and the nominal tariff rate on the important input t; = 20%, then find the rate of effective protection.
t10%, input share.8, input tariff20% में ERP?

(a) 10%
(a) 10%
(b) 8%
(b) 8%
(c) 3%
(c) 3%
(d) – 30%
(d) – 30%
Answer & Explanation / उत्तर और व्याख्या
Answer: (d) – 30%
उत्तर: (d) – 30%

Explanation: (.10−.8×.20)/(1−.8)=−30%.

व्याख्या: g=(t−atᵢ)/(1−a)=(.10−.8×.20)/.20=−.06/.20=−.30=−30%। Input tax domestic value added को unprotectedcase सेभीकम करती है।

Question 64 / प्रश्न 64

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Which of the following are the members of SAARC countries? A. India B. Pakistan C. Sri Lanka D. Afghanistan E. China
SAARC members: A India; B Pakistan; C Sri Lanka; D Afghanistan; E China।

(a) A, C and E only
(a) A, C और E केवल
(b) B, C and E only
(b) B, C और E केवल
(c) A, D and E only
(c) A, D और E केवल
(d) A, B, C and D only
(d) A, B, C और D केवल
Answer & Explanation / उत्तर और व्याख्या
Answer: (d) A, B, C and D only
उत्तर: (d) A, B, C और D केवल

Explanation: China is an observer, not a SAARC member.

व्याख्या: A B C D members हैं; Chinaobserver है। Question historical membership पर है, political participation/activity की current स्थिति पर नहीं।

Question 70 / प्रश्न 70

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Match List I with List II.
GATS services modes match करें।

ListI
सूचीI		 ListII
सूचीII
A Mode1
मोड 1		 I Crossborder
सीमापार
B Mode2
मोड 2		 II Commercialpresence
वाणिज्यिकउपस्थिति
C Mode3
मोड 3		 III Naturalpersonmovement
व्यक्तियोंकाअस्थायीआवागमन
D Mode4
मोड 4		 IV Consumptionabroad
विदेशमेंउपभोग
(a) A-I, B-IV, C-III, D-II
(a) A-I, B-IV, C-III, D-II
(b) A-I, B-IV, C-II, D-III
(b) A-I, B-IV, C-II, D-III
(c) A-I, B-II, C-IV, D-III
(c) A-I, B-II, C-IV, D-III
(d) A-I, B-II, C-III, C-IV
(d) A-I, B-II, C-III, C-IV
Answer & Explanation / उत्तर और व्याख्या
Answer: (b) A-I, B-IV, C-II, D-III
उत्तर: (b) A-I, B-IV, C-II, D-III

Explanation: Modes1–4are cross-border supply, consumption abroad, commercial presence, and natural-person movement.

व्याख्या: Mode1remote service; 2consumertravels; 3firm establishes foreign presence; 4persontravels to provide service। AI BIV CII DIII।

Question 78 / प्रश्न 78

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Arrange the following in descending order on the basis of the year of WTO Ministerial Conferences held. A. Cancun, Mexico Conference B. Nairobi, Kenya Conference C. Bali, Indonesia Conference D. Buenos Aires, Argentina Conference E. Seattle, United States Conference
WTOministerials latest first: A Cancun; B Nairobi; C Bali; D Buenos Aires; E Seattle।

(a) A, C, D, B, E
(a) A, C, D, B, E
(b) D, B, C, A, E
(b) D, B, C, A, E
(c) B, C, A, E, D
(c) B, C, A, E, D
(d) E, A, C, B, D
(d) E, A, C, B, D
Answer & Explanation / उत्तर और व्याख्या
Answer: (b) D, B, C, A, E
उत्तर: (b) D, B, C, A, E

Explanation: The conferences occurred in 2017,2015,2013,2003, and 1999 in descending order.

व्याख्या: Buenos Aires 2017 → Nairobi 2015 → Bali 2013 → Cancun 2003 → Seattle 1999। क्रम D B C A E।

Question 85 / प्रश्न 85

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Arrange the trading groups as per their year of establishment starting from the oldest. A. European Free Trade Association B. North American Free Trade Agreement C. Asia Pacific Economic Cooperation D. Andean Community E. Association of South-East Nations
Groups oldest first: A EFTA; B NAFTA; C APEC; D Andean; E ASEAN।

(a) A, E, D, B, C
(a) A, E, D, B, C
(b) A, D, E, B, C
(b) A, D, E, B, C
(c) A, E, D, C, B
(c) A, E, D, C, B
(d) B, C, D, E, A
(d) B, C, D, E, A
Answer & Explanation / उत्तर और व्याख्या
Answer: (c) A, E, D, C, B
उत्तर: (c) A, E, D, C, B

Explanation: EFTA 1960, ASEAN 1967, Andean 1969, APEC 1989, and NAFTA 1994give A, E, D, C, B.

व्याख्या: EFTA 1960 → ASEAN 1967 → Andean Pact 1969 → APEC 1989 → NAFTA 1994। क्रम A E D C B। NAFTA 2020 में USMCA से replace होने कीबात original establishment date को नहीं बदलती।

Trade theories
व्यापार सिद्धांत

Question 37 / प्रश्न 37

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What does the case of ‘Immiserising growth’?
Immiserizing growth का intended meaning?

(a) Growth in richer nations would actually be self defeating
(a) Richcountrygrowth ही selfdefeating।
(b) Growth in poorer nations would actually be self defeating
(b) Growth सेदेशकी welfare घटसकती।
(c) Growth in poorer nations would actually be self promoting
(c) Poorcountrygrowth हमेशाफायदेमंद।
(d) Growth in richer nations would actually be self promoting
(d) Richcountrygrowth हमेशाफायदेमंद।
Answer & Explanation / उत्तर और व्याख्या
Answer / उत्तर: b as the closest option; not restricted to poor countries / closest(b)

Explanation: Immiserizing growth is a terms-of-trade possibility, not something restricted to poor countries.

व्याख्या: Export-biased growth severe adverse terms of trade देतो welfare fall possible है। यह large-country market power effect है, देशका पूरा होनामात्र necessary condition नहीं।

Question 38 / प्रश्न 38

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In which stage of the product cycle model, the imitating country starts under selling the innovating country in third markets?
Five-stage product cycle में imitator third markets में innovator को under sell कब करता ?

(a) Stage-V
(a) V।
(b) Stage-II
(b) II।
(c) Stage-III
(c) III।
(d) Stage-IV
(d) IV।
Answer & Explanation / उत्तर और व्याख्या
Answer: (d) Stage-IV
उत्तर: (d) IV।

Explanation: Third-market under cutting occurs in stage IVof the specified five-stage cycle.

व्याख्या: Five-stage schematic में foreign production III, third-market competition IV और innovator home-market import penetration V है। Numbering explicit five stages परआधारित है।

Question 40 / प्रश्न 40

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Which expression measures the intra-industry trade index?
Grubel–Lloyd intra industry index कौनसा?

(a) 1−|X−M|/(X+M)
(a) 1−|X−M|/(X+M)
(b) 1+|X−M|/(X+M)
(b) 1+|X−M|/(X+M)
(c) 1−(X+M)/(X+M)
(c) 1−(X+M)/(X+M)
(d) 1−|X−M|/(Z+M)
(d) 1−|X−M|/(Z+M)
Answer & Explanation / उत्तर और व्याख्या
Answer: (a) 1−|X−M|/(X+M)
उत्तर: (a) 1−|X−M|/(X+M)

Explanation: The Grubel–Lloyd measure subtracts absolute net trade from total trade’s normalised share.

व्याख्या: T=1−|X−M|/(X+M), total trade positive। Net trade absolute value subtract करने से 0–1range मिलती है।

Balance of payments and exchange rates
भुगतान संतुलन और विनिमय दर

Question 44 / प्रश्न 44

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The consequences of a country having a persistent current account surplus include. A. Employment generation B. Higher standard of living C. Low inflation pressure D. Currency appreciates in value E. More pressure on public debt
Persistent CAsurplus: A jobs; B living standard; C low inflation; D appreciation pressure; E public debt pressure।

(a) A, B, C and D only
(a) A, B, C और D केवल
(b) A, B and D only
(b) A, B और D केवल
(c) A and E only
(c) A और E केवल
(d) A, D and E only
(d) A, D और E केवल
Answer & Explanation / उत्तर और व्याख्या
Answer: b as intended possible effects, not guaranteed consequences
उत्तर: संभावित effects

Explanation: These are possible effects, not inevitable outcomes; surpluses can coexist with restrained domestic absorption.

व्याख्या: Surplus net external claims और forex demand pressure देसकता है; jobs/incomeeffectsdependoncycleandcauses। Higher living standard automatic नहीं, क्योंकि surplus domestic absorption सेबढ़ी saving भी दर्शाता है। Fixed FX/intervention में Dappreciationactualmovement नहीं pressure होगी।

Question 65 / प्रश्न 65

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Which of the following forms the credit side of the Balance of Payments? A. Unilateral transfer received B. Capital transfer received C. Income Payments (Import of factor services) D. Exports of factor services E. Merchandise imports
BOPcredits: A transfer received; B capital transfer received; C income payment; D factor service export; E merchandise import।

(a) A, B and E only
(a) A, B और E केवल
(b) B, C and D only
(b) B, C और D केवल
(c) A, C and D only
(c) A, C और D केवल
(d) A, B and D only
(d) A, B और D केवल
Answer & Explanation / उत्तर और व्याख्या
Answer: (d) A, B and D only
उत्तर: (d) A, B और D केवल

Explanation: Transfers received and service exports are credits; income payments and goods imports are debits.

व्याख्या: A B D receipts/credits हैं; C, E payments/debits। BPM6 में employee compensation/investment income primary income classified है, older“factor services”terminology से अलग।

December2022 · 2March2023 · ShiftII
दिसंबर2022 · 2मार्च2023 · पालीII

Trade theories
व्यापार सिद्धांत

Question 35 / प्रश्न 35

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According to the specific factors model, which of the following is correct?
Specific-factors model में trade के distribution effects?

(a) Trade benefits the factor specific to the export sector of each country but hurts the factor specific to the import-competing sectors with ambiguous effects on mobile factors.
(a) Export-specificfactorbenefit, import-specifichurt, mobileambiguous।
(b) Trade hurts the factor specific to the export sector of each country and also hurts the factor specific to the import-competing sectors, with ambiguous effects on mobile factors
(b) दोनों specifichurt।
(c) Trade benefits the factor specific to the import sector of each country but hurts the factor specific to the export-competing sectors, with ambiguous effects on mobile factors.
(c) Export-specifichurt, import-specificbenefit।
(d) Trade benefit the factor specific to the export sector as well as import-competing sector of each country, with ambiguous effect on mobile factors.
(d) दोनों specificbenefit।
Answer & Explanation / उत्तर और व्याख्या
Answer: (a) Trade benefits the factor specific to the export sector of each country but hurts the factor specific to the import-competing sectors with ambiguous effects on mobile factors.
उत्तर: (a) Export-specificfactorbenefit, import-specifichurt, mobileambiguous।

Explanation: The export-specific factor gains, the import-specific factor loses, and mobile labour’s real effect is ambiguous.

व्याख्या: Export relative price↑से export-specific real return↑और import-competing-specific return↓। Mobile labour real wage कानतीजा consumption basket पर depend करता है।

Question 36 / प्रश्न 36

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What does ‘immiserising growth’ argued?
Immiserizing growth का mechanism?

(a) Export-biased growth by poor nations would worsen their terms of trade so much that they would be worse off than if they had not grown at all.
(a) Exportbiasedgrowth से severe TOTlossnetwelfare घटाए।
(b) Export-biased growth by rich nations would worsen their terms of trade so much that they would be worse off than if they had not grown at all.
(b) केवल richcountries पर samecondition।
(c) Import-biased growth by poor nations would worsen their terms of trade so much that they would be worse off than if they had not grown at all.
(c) Importbiasedgrowthnecessarilyharmful।
(d) Import-biased growth by Rich nations would worsen their terms of trade so much that they would be worsen off than if had not grown at all.
(d) Richimportgrowthnecessarilyharmful।
Answer & Explanation / उत्तर और व्याख्या
Answer / उत्तर: a as the closest export-biased case / closest(a)

Explanation: Severe adverse terms-of-trade effects can outweigh export-biased growth gains; poverty is not a necessary condition.

व्याख्या: Large exporter growth world supply बढ़ाकर export price इतनीगिरासकताहैकि productivity gain सेअधिक TOTloss हो। Country का पूरा होना necessary condition नहीं; rich large exporter भी theoretically experience कर सकता है।

Question 37 / प्रश्न 37

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Which of the following postulates the Gravity Model correctly?
Gravity model काकौन prediction?

(a) The smaller and the closer the two countries are, the smaller the volume of trade between them is expected to be.
(a) Small/close से trade कमहमेशा।
(b) The larger and the closer the two countries are, the larger the volume of trade between them is expected to be.
(b) Large/closeeconomies में trade अधिक।
(c) The larger and the closer the two countries are, the smaller the volume of trade between them is expected to be.
(c) Large/close मेंकम।
(d) The smaller and farther the two countries are, the larger the volume of trade between them is expected to be.
(d) Small/distant मेंअधिक।
Answer & Explanation / उत्तर और व्याख्या
Answer: (b) The larger and the closer the two countries are, the larger the volume of trade between them is expected to be.
उत्तर: (b) Large/closeeconomies में trade अधिक।

Explanation: Larger, closer economies are predicted to trade more, other things equal.

व्याख्या: Economic mass raises bilateral trade और distance/frictions reduce करते हैं, other things same। Basic Tij∝Yi Yj/Dij।

Trade policy and integration
व्यापार नीति और एकीकरण

Question 38 / प्रश्न 38

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If the nominal tariff rate (t) on consumers of the final commodity is 10 per cent, the ratio of the cost of the imported input to the price of the final commodity in the absence of tariffs (ai) is = 0.8, and the nominal tariff rate on the imported input (ti) = 0, then find the rate of effective protection.
Final tariff10%, input share.8, input tariff0 में ERP?

(a) 5%
(a) 5%
(b) 8%
(b) 8%
(c) 50%
(c) 50%
(d) 10%
(d) 10%
Answer & Explanation / उत्तर और व्याख्या
Answer: (c) 50%
उत्तर: (c) 50%

Explanation: .10/(1−.8)=50%effective protection.

व्याख्या: g=(.10−.8×0)/(1−.8)=.10/.2=.50=50%। Low domestic value-added base से effective protection nominal tariff सेबहुतऊपर है।

Question 62 / प्रश्न 62

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Which of the following are part of non-tariff barriers? A. Import quotas B. Voluntary export restraint C. Export subsidy D. Compound tariff E. Ad Volorem tariff
Non tariff barriers/measures: A quotas; B VER; C export subsidy; D compound tariff; E advalorem tariff।

(a) A, B and D only
(a) A, B और D केवल
(b) A, B and E only
(b) A, B और E केवल
(c) A, B and C only
(c) A, B और C केवल
(d) B, C and D only
(d) B, C और D केवल
Answer & Explanation / उत्तर और व्याख्या
Answer: (c) A, B and C only
उत्तर: (c) A, B और C केवल

Explanation: Quotas, VERs, and subsidies are non tariff measures; compound/advalorem duties are tariffs.

व्याख्या: A B C price/quantity interventions outside customs tariff हैं। D/Etariffstructure के forms हैं। WTOlegalitymeasure और context पर अलग question है।

Question 83 / प्रश्न 83

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Arrange the following organizations as per their years of establishment starting from the oldest. A. WTO B. ADB C. UNCTAD D. World Bank E. WIPO
Organisations oldest first: A WTO; B ADB; C UNCTAD; D World Bank; E WIPO।

(a) D, C, B, E, A
(a) D, C, B, E, A
(b) D, B, C, E, A
(b) D, B, C, E, A
(c) D, B, C, A, E
(c) D, B, C, A, E
(d) D, B, A, C, E
(d) D, B, A, C, E
Answer & Explanation / उत्तर और व्याख्या
Answer: (a) D, C, B, E, A
उत्तर: (a) D, C, B, E, A

Explanation: World Bank 1944, UNCTAD 1964, ADB 1966, WIPO 1967/70, and WTO 1995give D, C, B, E, A.

व्याख्या: World Bank 1944 → UNCTAD 1964 → ADB 1966 → WIPO 1967convention/1970in force → WTO 1995। WIPO दो dates मेंभी ADB के बाद/WTO सेपहले है। D C B E A।

Question 87 / प्रश्न 87

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Given below are two statements. Statement I: Countries always want to have foreign markets open for their exporters. But if a country limits access to its own market, foreign countries may take action to limit access to their own market. Statement II: Trade agreement can help lower barrier to international commerce, but countries still have to believe that other countries are ‘‘playing fair.’’ In the light of the above statements,
I Importrestrictionsretaliation देसकते; II trade agreement के लिए fair play/credible compliance महत्वपूर्ण।

(a) Both Statement I and Statement II are true.
(a) दोनों सही।
(b) Both Statement I and Statement II are false.
(b) दोनों गलत।
(c) Statement I is true but Statement II is false.
(c) I सही II गलत।
(d) Statement I is false but Statement II is true.
(d) I गलत II सही।
Answer & Explanation / उत्तर और व्याख्या
Answer: (a) Both Statement I and Statement II are true.
उत्तर: (a) दोनों सही।

Explanation: Retaliation incentives and credible compliance help explain reciprocal trade agreements.

व्याख्या: Reciprocal market access और retaliationincentivescooperation को shape करते हैं। Agreements barriers घटाते हैं, लेकिन enforcement/trust problems पूरी तरहखत्म नहीं होते।

Balance of payments and exchange rates
भुगतान संतुलन और विनिमय दर

Question 63 / प्रश्न 63

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Marshall-Lerner condition states that. A. Devalution will improve the country’s balance of payments if the sum of price elasticities of demand for exports and imports in absolute terms is greater than one. B. Devalution will increase the balance of payments deficit if the sum of the price elasticities of demand for exports and imports is less than one. C. Devaluation will have no effect on the balance of payment situation if the sum of the price elasticities of demand for exports and imports is equal to one. D. In no case, devalution can improve the balance of payment disequilibrium if either the price elasticities of demand for export or that of import is zero. E. Marshall-Lerner condition has no relation with BOP situation.
Marshall Lerner: A sum>1trade balance improve; B sum<1worsen; C sum1first-order neutral; D either elasticity0 तो impossible; E unrelated BOP।

(a) A, B and E only
(a) A, B और E केवल
(b) B, C and D only
(b) B, C और D केवल
(c) C, D and A only
(c) C, D और A केवल
(d) A, B and C only
(d) A, B और C केवल
Answer & Explanation / उत्तर और व्याख्या
Answer / उत्तर: d under initial trade-balance and elasticity assumptions / usual assumptions

Explanation: Under standard initial-balance assumptions, the elasticity sum determines the first-order trade-balance effect.

व्याख्या: A B C usual balanced-initial trade/elastic export-supply local result हैं। Dfalse: one elasticity0 दूसरी>1 होतो sum>1 हो सकता। Full BOPfinancialflows समेत trade balance सेबड़ aconcept है।

Question 68 / प्रश्न 68

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Match List I with List II.
Trade/FXeffects match करें।

ListI
सूचीI		 ListII
सूचीII
A Metzlerparadox
मेट्ज़लरविरोधाभास		 I Tariffcanreverseusual SSresult
usual SSdirection काउलट
B Beachheadeffect
बीचहेडप्रभाव		 II Exporterpricingreluctance
exporter पूर्ण FXchangeprice मेंनडाले
C Dutchdisease
डचरोग		 III Traditionaltradableslosecompetitiveness
पारंपरिकउद्योगप्रतिस्पर्धाघटे
D Jcurve
जेवक्र		 IV Initialtradebalancedeterioration
शुरुआतमेंव्यापारसंतुलनबिगड़े
(a) A-II, B-III, C-IV, D-I
(a) A-II, B-III, C-IV, D-I
(b) A-III, B-IV, C-II, D-I
(b) A-III, B-IV, C-II, D-I
(c) A-I, B-II, C-III, D-IV
(c) A-I, B-II, C-III, D-IV
(d) A-IV, B-III, C-II, D-I
(d) A-IV, B-III, C-II, D-I
Answer & Explanation / उत्तर और व्याख्या
Answer: (c) A-I, B-II, C-III, D-IV
उत्तर: (c) A-I, B-II, C-III, D-IV

Explanation: The four concepts concern tariff-price reversal, exporter pricing, harmed traditional tradables, and initial trade deterioration.

व्याख्या: A I, B II, C III, D IV। Metzler में tariff foreign export price इतनीघटासकताहैकि domestic protected price गिरे; SSassumptions के relative price change कोध्यानदें, formal theorem कातर्कखारिज नहीं होता।