The term 'Invisible Trade' in the balance of payments includes: MCQ with Answer and Explanation

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The term 'Invisible Trade' in the balance of payments includes:

A. Only foreign direct investment

B. Trade in merchandise goods only

C. Trade in services, income and unilateral transfers

D. Only capital transfers

Answer: Option C

Solution (By JKSSB Mock Tests)

Invisible trade (invisibles) comprises services (travel, transportation, software, etc.), primary income and secondary income (transfers).

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Green Revolution' in India began in the mid:

A. 1990s

B. 1980s

C. 1940s

D. 1960s

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Correct Answer: Option D

Explanation:
The Green Revolution began in India in the mid-1960s.

This question belongs to: Economy GK Economy Set 1

Question #2

In the context of cost analysis, fixed costs in the short run:

A. Vary with the level of output

B. Are zero at zero output

C. Remain constant irrespective of the level of output

D. Are always greater than variable costs

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Correct Answer: Option C

Explanation:
Fixed costs do not change with the level of output in the short run; they must be incurred even if output is zero.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'net factor income from abroad' is negative when factor incomes paid abroad are:

A. less than factor incomes received from abroad

B. greater than factor incomes received from abroad

C. equal to factor incomes received

D. zero

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Correct Answer: Option B

Explanation:
Net factor income from abroad is negative when payments abroad exceed receipts from abroad.

This question belongs to: Economy GK Economy Set 1

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