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Economics Mcqs

That the division of labor is limited by the size of the market best applies to which explanation of trade ?

Economics Mcqs, Sources of Comparative Advantage /
That the division of labor is limited by the size of the market best applies to which explanation of trade ?

A. Factor endowment theory
B. Product life cycle theory
C. Economies of scale theory
D. Overlapg demand theory

That the division of labor is limited by the size of the market best applies to which explanation of trade ? Read More »

Economics Mcqs, Sources of Comparative Advantage

_____ 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 ?

Economics Mcqs, Sources of Comparative Advantage /
_____ 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. Paul Samuelson’s
B. Wolfgang Stolpher’s
C. Staffan Linder’s
D. Wassily Leontief’s

_____ 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 ? Read More »

Economics Mcqs, Sources of Comparative Advantage

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 ?

Economics Mcqs, Sources of Comparative Advantage /
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. increased
B. Decreased
C. Not changed
D. Any of the above

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 ? Read More »

Economics Mcqs, Sources of Comparative Advantage

The trade model of the Swedish economies Heckscher and Ohlin maintains that ?

Economics Mcqs, Sources of Comparative Advantage /
The trade model of the Swedish economies Heckscher and Ohlin maintains that ?

A. Absolute advantage determines the distribution of the gains from trade
B. Comparative advantage determines the distribution of the gains from trade
C. The division of labor is limited by the size of the world market
D. A country exports goods for which its resource endowments are most suited

The trade model of the Swedish economies Heckscher and Ohlin maintains that ? Read More »

Economics Mcqs, Sources of Comparative Advantage

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 ?

Economics Mcqs, Sources of Comparative Advantage /
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 factor endowments
B. Theory of overlapg demands
C. Economies of scale theory
D. Product life cycle theory

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 ? Read More »

Economics Mcqs, Sources of Comparative Advantage

Interindustry trade can be explained by all of the following except ?

Economics Mcqs, Sources of Comparative Advantage /
Interindustry trade can be explained by all of the following except ?

A. high transportation costs as a proportion of product value
B. different growing seasons of the year for agricultural products
C. product differentiation for good such as automobiles
D. high per capita incomes in exporting countries

Interindustry trade can be explained by all of the following except ? Read More »

Economics Mcqs, Sources of Comparative Advantage

A product will be traded only if the pre-trade price difference between the two countries ?

Economics Mcqs, Sources of Comparative Advantage /
A product will be traded only if the pre-trade price difference between the two countries ?

A. is less than 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. equals the cost of transporting it between them
D. more information in needed to answer this

A product will be traded only if the pre-trade price difference between the two countries ? Read More »

Economics Mcqs, Sources of Comparative Advantage

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 ?

Economics Mcqs, Sources of Comparative Advantage /
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 ?

XA. 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

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 ? Read More »

Economics Mcqs, Sources of Comparative Advantage