Economics MCQs

Page No. 211

The opportunity cost of one DVD in South Korea is ?


aOne-half ton of steel

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bOne ton of steel

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cOne and one-half tons of steel

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d Two tons of steel

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View Answer Two tons of steel

G. MacDougall’s empirical results can be interpreted as ?


a evidence against the classical model

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bevidence against the Heckscher-Ohlin model

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cSupport for the Ricardian modal

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d Support for the Heckscher-Ohlin model

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G. MacDougal compared export ratios and labor productivity ratios for the United States and the United Kingdom in order to test the:


aRicardian theory of comparative

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b Heckscher Ohl in theory of comparative advantage

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cLinder theory of overlapping demand all of the above

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dNone of these

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John Stuart Mill was the founder of the ?


a Theory of reciprocal demand

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bTheory of absolute advantage

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cTheory of comarative advantage

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dTheory of mercantilism

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If the autarky price of S were lower in country A than in country B then if trade were allowed ?


a A would likely export S to B

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b A would likely import S from B

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cneither country would want to trade

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dNone of the above

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In autarky equilibrium ?


aProduction equals consumption

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bExports equal imports

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cthere is no trade

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dAll of the above

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View Answer All of the above

Given free trade, small nations tend to benefit the most from trade since they ?


aAre more productive than their large trading partners

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bAre less productive than their large trading partners

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cHave demand preferences and income levels lower than their large trading partners

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dRealize terms of trade lying near the MRTs of their large trading partners

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The terms of trade is given by the prices ?


aPaid for all goods exported by the home country

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bReceived for all goods exported by the home country

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cReceived for exports and paid for imports

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dOf primary products as opposed to manufactured products

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If a country has a bowed out (concave to the origin) production possibility frontier then production is said to be subject to ?


aconstant opportunity costs

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b decreasing opportunity costs

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cfirst increasing and then decreasing opportunity costs

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dincreasing opportunity costs

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If the relative price (MRT) of S were to increase, then the price line would ?


ashift out in a parallel fashion

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bshift in a parallel fashion

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cBecome steeper

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dBecome flatter

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View Answer Become steeper

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