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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

Leontief’s result were considered paradoxical because the United Stated was believed to be ?

Economics Mcqs, Sources of Comparative Advantage /
Leontief’s result were considered paradoxical because the United Stated was believed to be ?

A. technologically efficient relative to the rest of the world
B. capital abundant relative to the rest of the world
C. labor abundant relative to the rest of the world
D. All of the above

Leontief’s result were considered paradoxical because the United Stated was believed to be ? Read More »

Economics Mcqs, Sources of Comparative Advantage

In his empirical tests, Wassily Leontief used an input-output table to ?

Economics Mcqs, Sources of Comparative Advantage /
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 labor productivity of America workers relative to foreign workers
C. calculate the capital productivity of American capital relative to foreign capital
D. All of the above

In his empirical tests, Wassily Leontief used an input-output table to ? Read More »

Economics Mcqs, Sources of Comparative Advantage

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 ?

Economics Mcqs, Sources of Comparative Advantage /
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. tastes
B. technology
C. factor/resource
D. opportunity cost

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 ? Read More »

Economics Mcqs, Sources of Comparative Advantage

By reducing the volume of trade transportation costs tend to ?

Economics Mcqs, Sources of Comparative Advantage /
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. ensure that the process of product price equalization and factor price equalization are complete
C. eliminate all of the feasible gains from international trade
D. maximize all of the feasible gains from international trade

By reducing the volume of trade transportation costs tend to ? Read More »

Economics Mcqs, Sources of Comparative Advantage

The analyzes the income distribution effects of trade in the short run when resources are immobile among industries ?

Economics Mcqs, Sources of Comparative Advantage /
The analyzes the income distribution effects of trade in the short run when resources are immobile among industries ?

A. Stolpher-Samuelson theory
B. factor endowment theory
C. specific factors theory
D. overlapg demand theory

The analyzes the income distribution effects of trade in the short run when resources are immobile among industries ? Read More »

Economics Mcqs, Sources of Comparative Advantage