International Economics - Economics Previous Year Questions

If the sum of price elasticities of imports and exports of a country exceeds unity, then a depreciation of domestic currency will ultimately result in

The demand curve for tea in Borduria is given by \( D(P) = 40 - 2P \) and the domestic supply curve of tea in Borduria is given by \( S(P) = \frac{2}{3} P \) Here \( D(P) \) denotes quantity demanded when price is \( P \) and \( S(P) \) is quantity supplied by domestic producers at price \( P \). Tea is traded in a competitive world market and imported into Borduria at a price of 9 per unit. Initially there was no restriction on trade. However, as a result of lobbying by the domestic suppliers, the Bordurian government imposes a tariff of 3 per unit on each unit imported. As a result of the tariff, import of tea decreased by how many units?

For a given foreign currency, if the forward exchange rate of delivery is 20 and the current value of spot exchange rate is 8, then the forward premium will be __________ (rounded off to two decimal places).

Which one of the following combinations of simultaneous policy actions is NOT possible?