#1
What does FDI stand for?
Foreign Domestic Investment
Free Direct Investment
Foreign Direct Inflow
Financial Development Index
#2
Which factor is NOT a common determinant influencing FDI inflows?
Economic stability
Political environment
Geographical location
Internet speed
#3
What is the main objective of the Most Favored Nation (MFN) principle in international trade?
To favor only the wealthiest nations
To provide special treatment to specific countries
To ensure equal trading conditions among all nations
To restrict trade with certain nations
#4
What does the acronym WTO stand for in the context of international trade?
World Trade Organization
World Tourism Organization
World Technology Organization
World Taxation Organization
#5
What is the primary role of the International Monetary Fund (IMF) in the global economy?
To promote international trade
To provide financial assistance and stabilize exchange rates
To regulate domestic fiscal policies
To enforce trade tariffs
#6
Which market structure is characterized by a large number of sellers and buyers, with no single firm influencing the market price?
Monopoly
Oligopoly
Perfect Competition
Monopolistic Competition
#7
In the context of FDI, what does the term 'Greenfield investment' refer to?
Investment in environmentally friendly projects
Investment in new facilities or projects from the ground up
Investment in agricultural development
Investment in existing businesses
#8
What is the primary characteristic of a Monopoly market structure?
Numerous sellers and buyers
One seller dominating the market
Few sellers with similar products
Highly differentiated products
#9
In FDI, what is the difference between Horizontal FDI and Vertical FDI?
Horizontal involves the same industry, while Vertical involves different industries.
Horizontal involves different industries, while Vertical involves the same industry.
Both terms are synonymous.
Neither Horizontal nor Vertical is related to FDI.
#10
Which of the following is a characteristic of a perfectly competitive market?
Product differentiation
Barriers to entry
Many buyers and sellers
Price-setting power of individual firms
#11
What is the primary reason why countries adopt policies to attract FDI?
To increase unemployment
To restrict economic growth
To enhance economic development
To discourage technological advancements
#12
Which of the following is a motive for a country to attract FDI?
Increase unemployment rates
Reduce economic growth
Enhance technological capabilities
Stagnate innovation
#13
In an Oligopoly, how do firms typically behave?
Compete aggressively with each other
Collude and cooperate to maximize joint profits
Operate independently with no interaction
Follow government regulations strictly
#14
What is the concept of 'Market Power' in the context of market structures?
The ability of a firm to set market prices independently
The extent of government intervention in the market
The total market share of all firms combined
The speed at which goods are traded in the market
#15
Which market structure is characterized by a few large firms dominating the market and influencing prices?
Perfect Competition
Oligopoly
Monopoly
Monopolistic Competition
#16
What is the 'Liquidity Preference Theory' associated with in economics?
Inflation
Interest rates
Supply and demand
Economic growth
#17
Which of the following is a characteristic of Monopolistic Competition?
Identical products
A large number of firms
No price-setting power
Barriers to entry