Question Bank 

Unit 1:

1)      Which of the following is not a flow concept?

a.       GDP

b.      GNP

c.       Investment

d.      Wealth

Answer: d

2)      Which of the following includes depreciation?

a.       NNP at market price

b.      GNP

c.       NDP at factor price

d.      NNP at factor price

Answer: b

3)      Which of the following is absent in a three sector economy?

a.       Capital market

b.      Firms

c.       Foreign sector

d.      Households

Answer: c

4)      What factor differentiates the real and nominal GNP?

a.       Rate of interest

b.      Inflation

c.       Tax rate

d.      Savings
 Answer: b

5)      Which of the following is not a determinant of marginal efficiency of capital?

a.       Prospective incomes expected

b.      Scrap value of the asset

c.       Supply price of capital

d.      Nominal exchange rate

Answer: d

6)      Which of the following pertains to the credit of the current account?

a.       Exports of goods and services

b.      Lending to foreigners

c.       Borrowing from abroad

d.      Fresh deposits by NRIs

Answer: a

7)      Which of the following is not an economic factor causing of balance of payments
disequilibrium?

a.       Price changes

b.      Political instability

c.       Restrictions on imports

d.      Technological changes

Answer: b

8)      According to which of the following methods, the exchange rate is determined by demand
and supply of foreign exchange?

a.       Elasticity approach

b.      Portfolio balance approach

c.       Purchasing power parity theory

d.      Market theory of exchange rate

 Answer: d

9)      Which of the following is not an advantage of fixed exchange rate system:

a.       It eliminates risk caused by uncertainty

b.      Prevents import of inflation

c.       Provides autonomy in economic policies

d.      Eliminates possibility of speculation

Answer: c

10)   Which of the following refers to the fixed exchange rate system?

a.       Pegged exchange rate

b.      Crawling peg

c.       Exchange rate band

d.      Adjustable peg

Answer: a

11)   Which of the following is an assumption of the Say’s law?

a.       Existence of a monopoly market

b.      Government regulation

c.       Easy access to the market for new entrants

d.      A socialist economy

Answer: c

12)   Why might the Say’s law fail?

a.       Savings depend more on the level of income than on rate of interest

b.      Wages are perfectly flexible

c.       Demand and supply are always equal

d.      Supply creates its own demand

Answer: a
13)   Which of the following is not a determinant of employment in Keynesian theory?

a.       Income

b.      Marginal propensity to consume

c.       Supply of goods and services

d.      Rate of interest

Answer: c

14)   According to Keynesian theory:

a.       Full employment rarely occurs

b.      At equilibrium, there is full employment in the economy

c.       Government intervention is not required in the market

d.      Rate of interest is the sole determinant of employment

Answer: a

15)   Which of the following is the post Keynesian school of thought?

a.       Monetarism

b.      Baumol and Tobin model

c.       Friedman’s theory

d.      Neo classical theories

Answer: b

16)   Which of the following is not a goal of macroeconomic policy?

a.       Reduction of intra-household inequality

b.      Price stability

c.       Exchange rate stability

d.      Full employment

Answer: a
17)   In which of the following phases of macroeconomic policy the economic activity reaches
the  bottom level?

a.       Prosperity

b.      Recession

c.       Depression

d.      Recovery

Answer: c

18)   Which of the following is not a limitation of macroeconomic policy in developing

countries?

a.       Underdeveloped capital market

b.      Unorganized sector

c.       Technological obsolescence

d.      Poor banking habits

Answer: c

19)   The occurrence of inflation and recession together is known as:

a.       Depression

b.      Stagflation

c.       Hyperinflation

d.      Disinflation

Answer: b

20)   Which of the following is the main determinant of employment according to classical
theory?

a.       Inflation

b.      Aggregate supply

c.       Aggregate demand

d.      Exchange rate

Answer: b

Short answer questions:

1.       The difference between GNP and GDP is due to ____________.

Answer:     Net factor income from abroad

2.       Define marginal efficiency of investment.

Answer:      It is an indicator of the expected rate of return from an additional unit of
investment.

3.       The official settlement account is usually a part of ___________.

Answer:       Capital account

4.       What are autonomous transactions?

Answer:   They are those international transactions that take place on their own or for
their own sake due to some economic motive or the satisfaction they yield.

5.       Selling of a currency in the spot and forward market simultaneously is called

__________.

Answer:    Currency swap

6.       According to Say’s law _________ creates its own demand.

Answer:    Supply

7.       In Keynesian theory, when investment rises by a certain amount, the output

rises _________.

Answer: By a multiple of that amount

8.       What is effective demand?

Answer:     It refers to the point on the aggregate demand curve, where it is intersected
by the aggregate supply curve.

9.       ________ is the prime objective of macroeconomic policy in a developing

country.

Answer:     Price stability

10.   Define business cycle.

 Answer:    Short run cyclical fluctuations due to variations in income, employment,
and output. 

Unit 2:

1.       What is the poverty ratio?

a.       Ratio of people falling below poverty line

b.      Ratio of the number of poor and non poor

c.       Number of poor per square meter of area

d.      Ratio of the poor in the rural and urban areas

Answer: a

2.       Which of the following is not a cause of poverty in India?

a.       Slow pace of economic growth

b.      Rising income and wealth inequalities

c.       Rapid increase in population

d.      Food shortage

Answer: d

3.       What is the approximate poverty ratio according to the latest data?

a.       60%

b.      75%

c.       30%

d.      17%

Answer: c

4.       What is relative poverty?

a.       A problem of inequality of wealth making a few better off than others

b.      A situation of extreme deprivation

 c.       Lack of basic necessities of life

d.      A state where no one is affluent

Answer: a

5.       Which of the following is a poverty eradication scheme of the government of India?

a.       Deendayal Upadhyay Gram Jyoti Yojana

b.      Jawahar Grameen Samridhi Yojana

c.       HRIDAY

d.      UJJAWALA scheme

Answer: b

6. Inclusive Growth became the focal point of which plan year:

a. 1st plan
b. 5th Plan
c. 7th Plan
d. 11th Plan

Ans-d
7.  Which effort by the Government leads to inclusive growth?

a. MGNREGA Scheme
b. Sarva Shiksha Abhiyan
c. Smart Cities Programme
d. All of the above

Ans- d
8. Inclusive growth is the agenda of economic development in the future. The strategy of
inclusive growth does not focus on

A. Enhancement of education opportunities

B. Reduction of poverty among backward castes
C. Diversifying livelihood for tribal population
D. Promotion of ancillary industry in industrial regions

Ans- D
9.  Human Development Index comprises literacy rates, life expectancy at birth, and
 A. Gross domestic product per head in US dollar
B. Gross domestic product per head at real purchasing power
C. Gross national product in US dollars
D. National income per head in US dollars

Ans-d
10. The growth process that is sustainable and yields broad-based benefits and ensures
equality of opportunity for all is termed
a) Faster growth
b) Inclusive growth
c) Balanced growth
d) Sustained growth
Ans-b

11. In a Lorenz diagram for income, the line of equality shows 

a. the most equitable income distribution. 
b. how unequally incomes are distributed. 
c. how much redistribution occurs. 
d. the income distribution if everyone received the same income.
Ans-d

12. The higher the cost of acquiring skills, the ____ are the high-skilled and low-
skilled labor ____ curves. 
a. closer together; demand 
b. farther apart; demand 
c. closer together; supply 
d. farther apart; supply
Ans-d

13. Which of the following reduces the inequality of income? 

a. Government payments to the poor. 
b. A regressive income tax. 
c. Large bequests. 
d. Assortative mating.
Ans-a
 
14. Which of the following is a reason why the wage rate of high-skilled workers
exceeds the wage rate of low-skilled workers? 
a. The market for high-skilled workers is more competitive than the market for low-
skilled labor. 
b. The demand for high-skilled workers exceeds the demand for low-skilled workers.
c. The number of high-skilled workers exceeds the number of low-skilled workers. 
d. Low-skilled workers often are in the process of acquiring more human capital.
ans-B
 15. Government tax and redistribution programs 
a. generally redistribute income away from the poor and give it to the rich. 
b. have no net redistributive effects. 
c. generally redistribute income away from the rich and give it to the poor. 
d. are dwarfed by the scale of government programs designed to give away goods and
services below cost
Ans- c
16. Consider the following statements:
1. MGNREGA was enacted by the Government of India in 2005.
2. It provides 100 Days of guaranteed unskilled manual labour work in every
financial year to adults of rural households.
 
Among these, which statement is correct?
a. 1 only
b. 2 only
c. Both 1 & 2
d. None 
Ans-c
 
17. What type of unemployment is found in India?
a. Structural Unemployment
b. Seasonal unemployment
c. Disguise unemployment
d. All of the above
Ans-d
 
 
18. If a person is ready to work at the prevailing wage rate in the market, but he is
unable to find work, then what type of unemployment would it be called?
a. Voluntary unemployment
b. Involuntary unemployment
c. Seasonal unemployment
d. Under Employment
Ans-b
 
19. In which type of unemployment do the marginal productivity of the workers is
zero?
a. Disguised Unemployment
b. Involuntary unemployment
c. Seasonal unemployment
d. Structural Unemployment
Ans-a
 20. If new computers are being installed in a company and some employees are fired
from the job due to lack of computer knowledge then what kind of unemployment
will it be called?
a. Disguised Unemployment
b. Structural unemployment
c. Hidden unemployment
d. Frictional unemployment
Ans-d

 
 
  SHORT ANSWER QUESTIONS :

1. What do you understand by Underemployment?

Ans. When a person is employed but unable to utilize their mental or physical
capabilities fully.

2. For a person to be considered employed, for how many days in a year does he have to
work ?
Ans. At least 183 days.

Unit 3:

1. Scope of public finance includes:

a. Public revenue
b. Public debt
c. Public expenditure
d. All of these
               Ans-d

2. In the following which is the characteristic of a tax

a. Compulsory
b. Optional
c. Forced
d. Nationality 
             Ans-a

3. Direct taxes have the element of:

 a. Evasion
b. Convenient
c. Progressive
d. Economy
             Ans-c

4. In the case of regressive tax, the rate of tax ________ as income increases:
a. increases
b. remains constant
c. decreases
d. None
             Ans-c

5. Which of the following best describes “Public Finance”?

a. Study of taxes
b. Study of banking system
c. Study of general people accounts
d. Study of economic efficiency, distribution of resources and Government policies and
its effect.
            Ans-d

6.  Public Expenditure increases

A. Interest rate
B. Employment
C. Exports
D. Import
             Ans- B

7. The principle of public expenditure that requires that Government should avoid shortfall of
revenue in comparison with its expenditure is termed as

a. Canon of Deficit
b. Canon of Surplus
c. Canon of Elasticity
d. Canon of Sanction

Ans- B

8. Developmental expenditure refers to

a. Revenue Expenditure incurred for meeting current expenses of the Government

b. Capital Expenditure incurred for creating long-term assets of the Government
c. Expenditure which is incurred on activities directly related to economic development
 d. Expenditure which is incurred on running the normal government administration

Ans- C

9. ______________ refers to refusal to repay the debt.

A. Repudiation
B. Capital levy
C. Sinking fund
D. None of the above

Ans- a

10.  Which of the following contributes to public debt of a country?

a. Public welfare
b. Economic growth
c. Inefficiencies of public organization and corruption
d. All of the above
Ans-d

11. Deadweight debt refers to which part of public debt?

a. Internal debt
b. External debt
c. Unproductive debt
d. Productive Debt
Ans-c

12. Expenditure incurred by the government on building durable assets like highways,
bridges, metro, etc. are in nature of:
a. Capital Expenditure
b. Revenue Expenditure
c. Transfer Expenditure
d. Unproductive Expenditure
Ans-A

13. When revenue are exactly equal to expenditure during a given period is called:
a. Budget Deficit
b. Balanced Budget
c. Budget Surplus
d. Public Debt
Ans-b

14. Expenditure incurred for civil administration is in nature of

a. Capital Expenditure
b. Revenue Expenditure
 c. Transfer Expenditure
d. productive Expenditure
Ans- b

15. Contra-cyclical fiscal policy was popularised by:

a. Adam Smith
b. Dalton
c. J.B. Say
d. Keynes

Ans-d

16. The practice by Governments in which a government spends more money than it receives
as revenue is referred to as:

a. Piggy backing
b. Direct Funding
c. Deficit financing
d. Pump Priming

Ans-c

17. Deficit financing includes

a. Borrowing from the Central Bank

b. Issues of new currency by the Government
c. Withdrawal of past accumulated cash balance by the government
d. All the above

Ans-d

18. Deficit financing may lead to:

a. Poverty
b. Unemployment
c. Inflation
d. Deflation

Ans- c

19. The largest component of revenue expenditure in India is:

A. Pension
B. Interest payments
C. Education
D. Health
 Ans-b

20. The burden of long term public debt is on:

a. Present generation
b. Past generation
c. Future generation
d. None of these

Ans- C

Short Questions

1. A fund created by the government and gradually accumulated every year by setting
aside a part of current public revenue in such a way that it would be sufficient to pay
off the funded debt at the time of maturity is called ______________. Ans- Sinking
Fund

2. What is the primary deficit?

Ans- The difference between fiscal deficit and interest payment during the year 

3. How does the revenue deficit differ from the effective revenue deficit?

Ans- The difference between revenue expenditure and revenue receipts is called
revenue deficit.while,  The difference between revenue deficit and grants for creation
of capital assets is called effective revenue deficit.

4. What is the budget deficit?

Ans- The difference between total expenditure and total receipts 

5. When the government raises revenue by borrowing from within the country is known
as _____________. (Ans- Internal Debt)
5.  ____________ is the process of replacing maturing securities with new securities. 
( Ans- Refunding)
7.  What is fiscal Federalism?
Ans- Division of economic functions and resources among different layers of
Government
8. The most important aim of fiscal policy in a developing country is _________.
( Economic Growth and development, welfare of people)
8. _________ is a broad based and a single comprehensive tax levied on goods and
services consumed in an economy. (Ans- GST)
8. _________________ is a special type of “once for all” tax on capital imposed to
repay war debts. (Ans- Capital Levy)
 Unit 4 :
 
SHORT QUESTIONS :
 
1. Who is the “Head of Staff” or “Chief of Operating Staff” of the IMF & the  World
Bank?
Ans.  Managing Director (IMF) & President (WB) respectively.
 
2.    For which all industries the government retained the need to obtain a license?
Ans. 6- Drugs & pharmaceuticals
            Hazardous Chemicals
            Explosives
            Tobacco products
            Alcoholic drinks
            Electronics, Aerospace & Defence
 
 
3.    On  the basis of the basket of which 5 currencies value of SDR is calculated?
Ans. US Dollar, Japanese Yen, Chinese Yuan, Euro, British Pound
 
4.    Board of Approval of SEZ is headed by______?
Ans. Secretary of department of Commerce
 
5.    What is the difference between Free Trade Area (FTA) and custom union?
Ans. Under FTA, there is free trade among members but individual separate
policies with non-members.
 
Custom Union- has free trade among members and a common policy for non-
members.
 
6.    European Union is what kind of  Regional Trade Agreement?
Ans. Common Market
 
7.    What are the 3 major features of the New Economic Policy of 1991?
Ans. LPG- Liberalisation, Privatisation & Globalisation
 
8.    Name the conference which lead to establishment of IMF & World Bank-
Ans. Bretton Woods Conference
 
9.    What is the purpose of lending money by IMF & WB?
Ans.  World Bank- Long run Capital development program
            IMF- Exchange rate stability & BOP crisis
  
 
10. Which organisation was the predecessor of WTO and which round of agreement
talks lead to establishment of this organisation?
Ans. GATT (General Agreement on Tariffs & Trade)
      Uruguay Round.
 
 
MCQ QUESTIONS: 
 
1. Which among these was not an objective of NEP 1991?
(a) Industrial licensing was abolished
(b) Small scale enterprises were favored
(c) Inflow of foreign capital & technology
(d) MRTP Act was abolished
 
2. Which among these were the reasons for policy change in India in 1991-
(1) BOP Crisis
(2) Mounting Fiscal Deficit
(3) Inflation 
(4) Dismal performance of Private Sector Undertakings
Choose the correct options-
(a) 1,2,3
(b) 1,2,4
(c) 1 & 2
(d) 1,2,3,4
 
3. Which amongst these was not a change in licensing policy of government in
1991-
(a) Prior permissions were done away with.
(b) Total of 5 industries were reserved by 1999.
(c) Electronics was one of the reserved industries.
(d) Reserved industries were either strategic or in national interest.
 
4. Operation of which all industries were kept with the government after NER?
(1) Atomic areas
(2) Railways
(3) Minerals 
(4) Automobiles 
Choose the correct option-
(a) 1,2,3,4
(b) 1,2,4
(c) 1,2,3
(d) 2,3,4
 
5. Which two organizations are together called as Bretton Woods Twins-
(a) IMF & World Bank
(b) IDA & IBRD
(c) GATT & WTO
(d) WB & WTO
 
6. Which of the following statements is NOT correct regarding the membership
of the IMF?
(a) Currently its membership is 189
(b) All "member countries" of the IMF are members of the United Nations
(c) All member countries of the IMF are not sovereign states
(d) Nauru is the latest member of the IMF
 
7. Which of the following currencies was the latest addition in the determination
of the value of the SDR?
(a) Japanese Yen
(b) Euro
(c) British Pound
(d) Chinese yuan
 
8. While calculating quota for a member country in IMF, weightages are-
(1) GDP                                       -  50%
(2) International Reserves      -   30%
(3) Economic Variability          -  15%
(4) Openness                             -   5%
Which among the following are correctly matched?
(a) 1,2
(b) 1,4
(c) 1,3
(d) 1,2,3,4
 
9. Consider the following statements regarding IMF-
(1) The IMF was established in 1944.
(2) All the member countries which participated in the Bretton Woods Conference
also signed AOA.
(3) In the making of the IMF both Keynes Plan & Whites Plan was followed.
(4) IMF Headquarter is in Washington DC, USA.
Which of the above statements are incorrect?
(a) 3,4
(b) 1,2
(c) 1.2.3
(d) 1,2,3,4
 
10. Consider the following function with regards to IMF-
(1) Exchange Rate Stability
(2) Short term monetary help during BOP Crisis
(3) Secure bilateral convertibility among member countries
(4) Promote capital investment in backward & underdeveloped economies.
Which among the following are correct?
(a) 1,2,3,4
(b) 1,2,3
(c) 2,3,4
(d) 1,2,4
 
11. Who brings out the annual report- “Ease of doing Business”?
(a) IMF
(b) World Bank
(c) WTO
(d) World Economic Forum
 
12. Which statement is correct regarding the Board of Governors of IMF?
(a) They normally meet twice a year.
(b) Any member having 25% of quota can call a special meeting.
(c) They review previous years funding activities.
(d) They have delegated the entire work to the Executive Board.
 
 
 
13. Consider the following questions regarding the management of IMF-
(1) There are 24 executive directors under IMF, amongst whom 19 represent
regional groups.
(2) President is Chairman of the Executive Board.
(3) Chairman has a casting vote.
(4) Chairman may not serve concurrently as Governor or Executive Director at
IMF.
(5) The Executive Board is responsible for the increase of Quota approval.
Choose the incorrect options-
(a) 1,2,3,4,5
(b) 1,3,4
(c) 1,2,5
(d) 2,3,4 
 
14. Consider the following questions regarding the quota of IMF-
(1) Quota decides financial resources & also access limits to financing for
member countries.
(2) Voting rights are decided by quota at the IMF.
(3) Any change in quota requires an 85% majority of total voting share.
(4) Quota of a member country cannot be changed without consent.
Which of the above statements are false-
(a) 1,2,3
(b) 1,2,4
(c) 1,2,3,4
(d) None of the above.
 
15. Which all are the funding objectives of the World Bank?
(1) Balanced growth of international trade
(2) To promote foreign private investment
(3) Raising productivity & standard of living
(4) Smooth transition from a wartime to a peacetime economy
Which of the above statements are true?
(a) 1,2,3,4
(b) 1,2,4
(c) 1,3,4
(d) 2,3,4
 
16. Which statement is true regarding the Advisory Council of the World Bank?
(a) They serve for a period of one year.
(b) They meet twice annually.
(c) Members cannot be reappointed.
(d) Representatives include banking, labour, agriculture interest.
 
17. Which of the following statements are true about the World Bank?
(1) The Governor of RBI also acts as Governor in the Board of Governor.
(2) The President can only participate in the Board of Governor meeting.
(3) The Executive Board consists of 25 Executive members.
(4) Advisory council consists of a maximum of 7 members.
Choose the correct options-
(a) 1,2,3
(b) 3,4
(c) 2,3
(d) 1,2
 
18. The World Trade Organization was established to implement the final act of
__________round agreement of GATT.
(a) New York
(b) Uruguay 
(c) Geneva 
(d) Tokyo 
 
 
 
19. Which of the following statements is not true about the WTO?
(a) WTO was officially constituted on 1 January 1991.
(b) WTO is a permanent organisation
(c) Uruguay round gave the birth to the WTO
(d) Ministerial Conference is the highest policy making body of the WTO
 
20. Which of the following statements is not correct?
(a) Both the IMF & IBRD have headquarters in Washington.
(b) Both IMF & World Bank are known as the Bretton Woods twins.
(c) India's vote share in the International Monetary Fund is 10%.
(d) Nauru became the last country to join the World Bank.
 
21. Consider the following questions about FDI & FPI-
(1) FDI transfers the ownership & management.
(2) FPI transfers financial claims only.
(3) They both lead to capital formation in the receiver country.
Choose the correct statements-
(a) 1,2
(b) 1,3
(c) 2,3
(d) 1,2,3
 
22. Consider the following statement & choose the incorrect option-
(a) Indian foreign reserves have touched the $500bn mark.
(b) After the NER 1991, FDI, FPI & remittances have increased multifold.
(c) In Oil Refineries, FDI was opened up from 49% to 75%.
(d) FIIA was established to increase the flow of FDI in the country.
 
23. Consider the following statements regarding features of SEZ’s-
(1) No license is required for import in SEZ.
(2) Only manufacturing units can be established.
(3) SEZs are not allowed to subcontract.
(4) Single window clearance system.
Choose the correct options-
(a) 1,2
(b) 2,3
(c) 2,4
(d) 1,4
 
 
24. Which of the following statements is incorrect regarding administration of
SEZ-
(1) Letter of approval is issued by the Central Government.
(2) The Board of Approval can only accept or reject the proposal.
(3) Post approval clearance is given by the Development Commissioner.
(4) Unit approval committee is set up at zonal level.
 
25. Consider the following Regional Trade agreements-
(1) Free Trade Area
(2) Common Market
(3) Custom Union
(4) Economic Union
Arrange the following Regional Trade Areas in rising levels of integration.
(a) 1,2,3,4
(b) 1,2,4,3
(c) 1,3,2,4
(d) 4,3,2,1
 
26. Which are the economic arguments in favour of Protectionism-
(1) Employment
(2) Diversification advantage
(3) Defense & Security
(4) Self sufficiency
Choose the correct options-
(a) 1,2
(b) 1,4
(c) 2,4
(d) 2,3
 
27. “Free Trade benefits all countries”. It is-
(a) Always True
(b) Always False
(c) Never True
(d) Conditional
 
28. Which 2 organizations together led to the formation of European Economic
Area (EEA)-
(a) European Free Trade Association & European Union
(b) European Economic Community & European Free Trade Association
(c) European Union & European Economic Community
(d) European Common Market & European Economic Community
 
 
 
29. Consider the following statements-
(1) Trade Creation leads to increase in cost of Production.
(2) Trade diversion leads to decrease in cost of Production.
Choose the correct option-
(a) Only 1 is correct
(b) Only 2 is correct
(c) Both are correct
(d) Neither are correct
 
30. Match the following-
Association of SouthEast Asian Nations    : (1) 1960
European Free Trade Association                : (2) 1991
North American Free Trade Association     : (3) 1967
Mercosur                                                          : (4) 1993
Choose the correct corresponding year.
(a) 1,3,2,4
(b) 3,1,4,2
(c) 2,1,4,3
(d) 3,4,1,2
 
31. Match List I with List II and select the correct answer using the codes given
below the lists:
List I                                                    List II
1. WTO                                          (A) Provides loans to address short-term
balance of payment problems
2. IDA                                            (B) Multilateral trade negotiation body
3. IMF                                            (C) Sanction of soft loans
4. IBRD                                          (D) Facilitating lending and borrowing for
reconstruction and development
a) 1-B, 2-C, 3-D, 4-A
b) 1-B, 2-C, 3-A, 4-D
c) 1-C, 2-B, 3-D, 4-A
d) 1-C, 2-B, 3-A, 4-D
 
 
32. Consider the following statement regarding Most Favoured Nation status-
(a) The term MFN means the country which is the recipient of this treatment must
nominally receive equal trade advantages as the "most favoured nation" by the
country granting such treatment.
(b) The members of the World Trade Organization (WTO) do not agree to accord
MFN status to each other.
(c) Once given the status of MFN it cannot be revoked for 10 years as per WTO
by law.
 
Which of the following statements is not true?
(a) 1 & 2 only
(b) 3 only
(c) 2 & 3 only
 (d) 1 only
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Correct Answers for unit-4
1- D
2- A 
3- B 
4- C 
5- A 
6- B 
7- D 
8- C 
9- B 
10- D 
11- B
12- C 
13- C 
14- D 
15- A 
16- D 
17- C
18- B 
19- A 
20- C 
21- A 
22- C 
23- D
24- B 
25- C 
26- C
27- D 
28- A 
29- D
30- B 
31- B
32- C