Economics Mcqs

A. comparative advantage
B. absolute advantage
C. opportunity cost
D. relative costs

A. Comparative advantage
B. High exchange rates
C. trade barriers
D. trade quotas

A. Reduce interest rates
B. Sell its own currency
C. Buy its own currency with foreign reserves
D. Increase its own spending

A. Total spending / total consumption
B. Total consumption / total income
C. Change in consumption / change in income
D. Change in consumption / change in savings

A. The income of one country compared to another
B. The GDP of one country compared to another
C. The quantity of exports of one country compared to another
D. Export prices compared to import prices

A. 0.4A
B. 2.5A
C. 10A
D. 1B

A. Higher interest rates
B. Higher income tax
C. Tariffs
D. Reduced government spending

A. Elimination of border controls
B. No import taxes on goods bought in another members country
C. Each country can retain its own technical standards
D. Common security arrangements

A. trade diversion
B. trade channeling
C. trade creation and trade diversion
D. trade creation

A. occurs when countries are granted most favored nation status
B. occurs when one country voluntarily agrees to reduce its exports to another country
C. occurs when two or more nations join to form a free-trade zone
D. Occurs when countries develop an acquired comparative advantage that makes their industries more competitive in international markets