Balance of trade includes:
- Invisible goods
- Visible goods
- Visible and invisible goods
- Capital goods
Show answer and explanation
Answer: B. Visible goods
Balance of trade records only the trade in visible (tangible) goods — exports minus imports.
I.Com Economics: International Trade, questions with answers
Practise 28 real Federal Board questions on International Trade from 2023 to 2025. See the answer and explanation as soon as you answer.
28real questions
11multiple choice
4exam sessions
About International Trade in I.Com Economics
International Trade is one of the 8 main chapters in our Federal Board I.Com Economics question bank (11th and 12th class), and about 8% of its real questions come from it. Tayyari Karo has 28 real questions on this chapter from 2023 to 2025; 11 are multiple choice and marked instantly, and the rest are short and long questions with a model answer. By difficulty: 15 medium, 12 easy, 1 hard.
Work through the questions below, then open the explanation for each one. Redo the ones you missed a few days later.
Try 8 real questions
These are real past-paper questions. Think of your answer first, then open the explanation.
The theory of absolute advantage was presented by:
- Adam Smith
- Professor Robbins
- Ricardo
- Alfred Marshall
Show answer and explanation
Answer: A. Adam Smith
Adam Smith proposed the theory of absolute advantage in international trade.
Government policy regarding exports and imports is called:
- Monetary policy
- Commercial policy
- Fiscal policy
- Industrial policy
Show answer and explanation
Answer: B. Commercial policy
Commercial (trade) policy is the government's policy dealing specifically with exports and imports.
Balance of trade is calculated by the difference between:
- Export and import of capital
- Value of exports and imports of goods
- The value of imports and exports of goods and services
- Import and export of services
Show answer and explanation
Answer: B. Value of exports and imports of goods
Balance of trade = value of visible exports − value of visible imports of goods.
Balance of trade includes:
- Visible items of exports
- Visible items of import
- Visible items of exports and imports
- Both visible and invisible items of exports and imports
Show answer and explanation
Answer: C. Visible items of exports and imports
Balance of trade covers only visible (tangible goods) exports and imports, unlike the balance of payments which also includes invisibles.
Due to specialization:
- Resources are underutilized
- Cost of production decreases
- National income decreases
- Unemployment increases
Show answer and explanation
Answer: B. Cost of production decreases
Specialization lets producers focus on what they do best, raising efficiency and lowering the cost of production.
Write down any four advantages of international trade.
Show model answer
(1) Enables countries to specialize based on comparative advantage, raising overall efficiency. (2) Provides consumers with greater variety of goods not produced at home. (3) Leads to optimum utilization of world resources. (4) Raises national income and employment through exports and promotes transfer of technology and healthy competition.
What is meant by protection?
Show model answer
Protection refers to government measures (tariffs, quotas, subsidies) that shield domestic industries from foreign competition by making imports costlier or restricted, aimed at promoting local industry and employment.
Sessions with International Trade questions
| Session | Questions |
|---|---|
| 2025 1st Annual | 7 |
| 2025 2nd Annual | 7 |
| 2024 Annual | 6 |
| 2023 Annual | 8 |
Common questions
What does the International Trade chapter cover on this page?
28 real Federal Board (FBISE) Economics questions on International Trade from 2023 to 2025, for 11th and 12th class. Each one shows the session it came from.
Are the answers official?
No. We could not find an official FBISE marking scheme for these papers, so the answers and explanations are written by Tayyari Karo for practice. Check anything important with your teacher or textbook.
Is it free?
You can start free with no signup. A small set of papers per subject is free, and Premium unlocks the full question bank.