Economics MCQs

Page No. 211

The opportunity cost of one DVD in South Korea is ?


aOne-half ton of steel


bOne ton of steel


cOne and one-half tons of steel


d Two tons of steel


View Answer Two tons of steel

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


a evidence against the classical model


bevidence against the Heckscher-Ohlin model


cSupport for the Ricardian modal


d Support for the Heckscher-Ohlin model



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


b Heckscher Ohl in theory of comparative advantage


cLinder theory of overlapping demand all of the above


dNone of these



John Stuart Mill was the founder of the ?


a Theory of reciprocal demand


bTheory of absolute advantage


cTheory of comarative advantage


dTheory of mercantilism



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


b A would likely import S from B


cneither country would want to trade


dNone of the above



In autarky equilibrium ?


aProduction equals consumption


bExports equal imports


cthere is no trade


dAll of the above


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


bAre less productive than their large trading partners


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


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



The terms of trade is given by the prices ?


aPaid for all goods exported by the home country


bReceived for all goods exported by the home country


cReceived for exports and paid for imports


dOf primary products as opposed to manufactured products



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


b decreasing opportunity costs


cfirst increasing and then decreasing opportunity costs


dincreasing opportunity costs



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


ashift out in a parallel fashion


bshift in a parallel fashion


cBecome steeper


dBecome flatter


View Answer Become steeper

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