Competitive Sources of Comparative Advantage MCQs ( Economics ) MCQs – Economics MCQs
This post is comprising of latest ” ( Economics ) MCQs – Latest Competitive Medical MCQs “. Here you’ll get latest Economics mcqs for written test, interview with answers. If you want to improve your knowledge regarding Economics then read these mcqs of Design of Steel Structures.
Latest Economics MCQs
By practicing these MCQs of Sources of Comparative Advantage Mcqs ( Economics ) MCQs – Latest Competitive Medical MCQs , an individual for exams performs better than before. This post comprising of mechanical engineering objective questions and answers related to “Sources of Comparative Advantage Mcqs ( Economics ) Mcqs “. As wise people believe “Perfect Practice make a Man Perfect”. It is therefore practice these mcqs of Economics to approach the success. Tab this page to check “Sources of Comparative Advantage Mcqs ( Economics )” for the preparation of competitive mcqs, FPSC mcqs, PPSC mcqs, SPSC mcqs, KPPSC mcqs, AJKPSC mcqs, BPSC mcqs, NTS mcqs, PTS mcqs, OTS mcqs, Atomic Energy mcqs, Pak Army mcqs, Pak Navy mcqs, CTS mcqs, ETEA mcqs and others.
Latest Sources of Comparative Advantage Mcqs ( Economics ) Mcqs
The most occurred mcqs of Sources of Comparative Advantage Mcqs ( Economics ) in past papers. Past papers of Sources of Comparative Advantage Mcqs ( Economics ) Mcqs. Past papers of Sources of Comparative Advantage Mcqs ( Economics ) Mcqs . Mcqs are the necessary part of any competitive / job related exams. The Mcqs having specific numbers in any written test. It is therefore everyone have to learn / remember the related Sources of Comparative Advantage Mcqs ( Economics ) Mcqs. The Important series of Sources of Comparative Advantage Mcqs ( Economics ) Mcqs are given below:
According to the factor price equalization theorem, the ________ factor should oppose free. trade policies in any given country?
A. abundant
B. scarce
C. neither abundant
D. can’t tell without more information
By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ?
A. specialization to stop when the production costs of the trading partners equalize
B. The prices of trade goods to be lower than when there are no transportation costs
C. The volume of trade to be less than when there are no transportation costs
D. The gains from trade to be greater than when there are no transportation costs
Advocates of industrial policy maintain that government should ?
A. provide loans to domestic workers in exporting industries
B. grant subsidies to firms offering potential comparative advantage
C. pursue free trade as a policy that leads to maximum global efficiency
D. increase interest rates on loans made to firms in import-competing industries
According to the Heckscher-Ohlin model ?
A. The scarce factor necessarily gains from trade
B. The gainers from trade outnumber the losers from trade
C. everyone automatically gains from trade
D. None of the above
In his empirical test of comparative advantage Wassily Leontief found that ?
A. U.S exports are neither labor nor capital intensive
B. U.S imports are labor intensive relative to U.S exports
C. U.S exports are capital intensive relative to U.S imports
D. None of the above
The Heckshcer-Ohl assumes that are indentical between countries?
A. technology levels
B. tastes and preferences
C. factor indowments
D. Both A and B
One of the predictions of the Heckscher-Ohlin model is that ?
A. countries with different factor endowments but similar technologies and preferences will have a strong basis for trade with each other
B. reciprocal demand leads to an equilibrium terms of trade by inducing change in both demand and supply
C. countries with tend to specialize but not completely in their comparative advantage good
D. All of the above
If tastes are identical between countries, then comparative advantage is determined by ?
A. supply condition only
B. supply and demand conditions
C. demand conditions only
D. can’t tell without more information
Trade Policies For The Developing Nations MCQs
Industrial policies intended to foster comparative advantage for domestic industries could result in the implementation of ?
A. loan guarantees
B. research and development subsidies
C. low interest rate loans
D. All of the above
The product cycle theory of trade is essentially a ?
A. zero-sum theory of trade
B. dynamic long run trade theory
C. static, short run trade theory
D. negative-sum theory of trade
The Heckscher-Ohl in model rules out the classical model’s basis for trade by assuming that _________ is (are) identical between countries?
A. factor intensities
B. factor endowments
C. technology
D. opportunity costs
Declining costs per unit of output results from international trade especially if ?
A. National governments levy imports tariffs and quotas
B. International trade affords producers monopoly power
C. Producing goods entails increasing costs
D. Economies of scale exist for producers
Dynamic comparative advantage theory ?
A. helps explain why some nations use industrial policy to support potentially competitive new firms
B. Is another name for Ricardo’s comparative advantage theory?
C. cannot explain strategic competition between firms such as Boeing and Airbus
D. None of the above
That the division of labor is limited by the size of the market best applies to which explanation of trade ?
A. Product life cycle theory
B. Factor endowment theory
C. Economies of scale theory
D. Overlapping demand theory
_____ 1954 study of U.S trade patterns showed that U.S exports were labor-intensive compared with U.S imports, even though the United States was widely regarded as a relatively capital-abundant nation ?
A. Wolfgang Stolpher’s
B. Paul Samuelson’s
C. Staffan Linder’s
D. Wassily Leontief’s
For the United States empirical studies indicate that over the past two hundred years the cost of international transportation relative to the value of U.S imports has ?
A. Not changed
B. Decreased
C. increased
D. Any of the above
The trade model of the Swedish economies Heckscher and Ohlin maintains that ?
A. Absolute advantage determines the distribution of the gains from trade
B. The division of labor is limited by the size of the world
C. market Comparative advantage determines the distribution of the gains from trade
D. A country exports goods for which its resource endowments are most suited
Which trade theory contends that a country that initially develops and exports a new product may eventually become an importer of it and may no longer manufacture the product ?
A. Theory of overlapping demands
B. Theory of factor endowments
C. Economies of scale theory
D. Product life cycle theory
The factor endowment model of international trade was developed by ?
A. David Ricardo
B. Adam Smith
C. John Stuart Mill
D. Eli Heckscher and Bertil Ohlin
Interindustry trade can be explained by all of the following except ?
A. product differentiation for good such as automobiles
B. different growing seasons of the year for agricultural products
C. high transportation costs as a proportion of product value
D. high per capita incomes in exporting countries
A product will be traded only if the pre-trade price difference between the two countries ?
A. equals the cost of transporting it between them
B. is greater than the cost of transporting it between them equals the cost of transporting it between them
C. is less than the cost of transporting it between them
D. more information in needed to answer this
Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?
A. wages and rents should rise in Country A
B. wages and rents should fall in Country A
C. wages should rise and rents should fall in Country A
D. wages should fall and rents should raise in Country A
The factor endowment theory was pioneered by ?
A. David Ricardo
B. Adam smith
C. Wassily Leontief
D. Eli Heckscher and Bertil Ohlin
Wassily Leontief’s results can be interpreted as ?
A. support for the Ricardian model
B. evidence against the Heckscher-Ohl in model
C. evidence against the Ricardi an model
D. support for the Heckcher Ohlin model
Leontief’s result were considered paradoxical because the United Stated was believed to be ?
A. labor abundant relative to the rest of the world
B. capital abundant relative to the rest of the world
C. technologically efficient relative to the rest of the world
D. All of the above
In his empirical tests, Wassily Leontief used an input-output table to ?
A. calculate the capital and labor required to produce $1 million of U.S exports and imports
B. calculate the capital productivity of American capital relative to foreign capital
C. calculate the labor productivity of America workers relative to foreign workers
D. All of the above
Wassily Leontief used an input output table in order to test the ?
A. Linder theory of overlapping demand
B. Heckscher Ohl in theory of comparative advantage
C. Ricardian theory of comparative advantage
D. All of the above
The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?
A. technology
B. tastes
C. factor/resource
D. opportunity cost
By reducing the volume of trade transportation costs tend to ?
A. stop the process of product price equalization and factor price equalization before they are complete:
B. eliminate all of the feasible gains from international trade
C. ensure that the process of product price equalization and factor price equalization are complete
D. maximize all of the feasible gains from international trade
The analyzes the income distribution effects of trade in the short run when resources are immobile among industries ?
A. factor endowment theory
B. Stolpher-Samuelson theory
C. specific factors theory
D. overlapping demand theory
The National Economy MCQs
The comparative advantage model of Ricardo was based on ?
A. demand conditions underlying specialization and trade
B. interindustry specialization and trade
C. intraindustry specialization and trade
D. income conditions underlying specialization and trade
According to the Heckscher-Ohlin model the source of comparative advantage is a country’s ?
A. advertising
B. technology
C. factor endowments
D. both (a) and (c)
Difference in environmental standards or other government regulations among nations ?
A. have tended to make U.S steel companies more competitive internationally
B. have no impact on patterns of international trade
C. can affect production costs and thus alter comparative advantages and trade patterns
D. have been eliminated by the nations participating in NAFTA
Intra-industry trade theory ?
A. Assumes that transport costs are very low or do not exist
B. Explains why the United States might export and import differentiated versions of the same product such as different types of autos
C. Explains why the United States might export autos and import clothing
D. ignores seasonal considerations for agricultural goods
Should international transportation costs decrease the effect on international trade would include a (an) ?
A. increase in the volume of trade
B. Decline in the income of home producers
C. Smaller gain from trade
D. Decrease in the level of specialization in production
According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?
A. similar levels of technology
B. similar endowments of natural resources
C. similar per-capita incomes
D. similar wage levels
According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ?
A. Import products that are land-intensive
B. Devote insufficient amounts of resources to agricultural production
C. Export products that are land-intensive
D. Devote excessive amounts of resources to agricultural production
The theory of overlapping demand predicts that trade in manufactured goods is unimportant for countries with very different ?
A. Expectations of future interest rate levels
B. Tastes and preferences
C. Per-capita income levels
D. Labor productivities
Boeing aircraft company was able to over its production costs of the first – jumbo jetll in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates ?
A. How economies of scale make possible a larger variety of products in international trade
B. How a natural monopoly is forced to behave more competitively with international trade
C. A transfer of wealth from domestic consumer to domestic producer as the result of trade
D. How a natural monopoly is forced to behave less competitively with international trade
The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries ?
A. Relative costs of labor
B. Relative abundance of various resources
C. Economies of large-scale production
D. Research and development expenditures