1. What will be elasticity of the offer curve of the foreign country at the specific point when it is given that
%change in imports is 20 and %change in exports is 30?

2. What will be optimum tariff when for elasticity of the offer curve of the foreign country at the specific point,
it is given that %change in imports is 10 and %change in exports is 30?

3. Study the diagram given below. Here PPC of A, a small country, is PP', international price line is JK and
Point Q is production equilibrium before tariff.

Given the production and consumption equilibrium before tariff, what amount of commodity Y will be
exported?

4. According to Heckscher Ohlin Theory.

5. Given below are two statements labelled as Assertion(A) and Reason(R). Choose the appropriate code.
Assertion(A): In H-O theory, there is absence of factor intensity reversal.
Reason(R): It assumes that in both countries, the same good (say, X) is always labour intensive while the
other (Y) is always capital intensive.

6. Given that the United States is relatively abundant in land while the European Union is relatively abundant
in capital, which of the following holds true in context of the 1--1eckscher-Ohlin model.

7. IfPx=400,Zx = 500, Qm=200, Pm=100,
Terms of Trade will be-

8. Consider the following statements-
I. Classical economists believed that developing countries can't adopt a development strategy on the basis of
growth of agricultural sector, so terms of trade will decline
II. Prebisch argued against it stating that due to scarcity of land terms of trade will improve

9. According to Marshall-Lerner condition, if a country's currency depreciates its trade balance will
improve if

10. Which amongst the following is not an assumption of H-O Theory?