Economics Practice Quiz 59

Q1.What is the basic function of foreign trade for producers?

A. To reduce production costs domestically B. To reach beyond the domestic markets C. To establish political alliances D. To limit consumer choices

Q2.For buyers, what is one way foreign trade expands their choices?

A. By promoting local production only B. By limiting imports to essential goods C. By expanding the choice of goods beyond what is domestically produced D. By increasing the price of imported goods

Q3.MNCs like Ford Motors tap into which advantages by setting up production plants in countries such as India?

A. Access to advanced technology and skilled labor only B. Large markets and lower costs of production C. Exclusive government subsidies and tax breaks D. Absence of local competition

Q4.What was the primary reason for Chinese manufacturers to start exporting toys to India, according to the provided text?

A. Indian toys were of poor quality. B. Toys were sold at a high price in India. C. India had a shortage of toy manufacturers. D. Chinese toys were specifically requested by Indian buyers.

Q5.What percentage of toy shops replaced Indian toys with Chinese toys within a year of Chinese toys entering the Indian market?

A. 10 to 20 per cent B. 30 to 40 per cent C. 50 to 60 per cent D. 70 to 80 per cent

Q6.Which of the following factors contributed to the increased popularity of Chinese toys in the Indian markets?

A. Superior durability and brand recognition. B. Cheaper prices and new designs. C. Government subsidies for imported goods. D. Lack of variety in Indian-made toys.

Q7.What was the effect of the entry of Chinese toys into the Indian market on Indian buyers, according to the provided text?

A. They had fewer choices and higher prices. B. They had greater choice of toys and at lower prices. C. They were forced to buy only Chinese toys. D. They experienced a decline in toy quality.

Q8.What was the consequence for Indian toy makers as a result of the competition from Chinese toys?

A. They expanded their business significantly. B. They faced losses as their toys sold much less. C. They started exporting toys to China. D. They collaborated with Chinese manufacturers.

Q9.The example of Chinese toys in Indian markets primarily illustrates the effect of which economic concept?

A. Domestic production B. Foreign investment C. Foreign trade D. Market regulation

Q10.Which of the following is NOT a general outcome of the opening of trade between countries?

A. Goods travel from one market to another. B. Choice of goods in the markets rises. C. Prices of similar goods in the two markets tend to become equal. D. Producers in the two countries reduce competition against each other.

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Economics Practice Quiz 59