Foundations of Modern Trade Theory Mcqs


Q.  Country B has the comparative advantage in ?

a. Wine
b. Beer
c. Both wine and beer
d. Neither wine nor beer


ANSWER: See Answer
 
Country A has a comparative advantage in the production of butter and Country B has a comparative advantage in producing guns.
MCQs:  If the relative price (MRT) of S were to increase, then the price line would ?
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MCQs:  The Relative price (MRT)of S in terms of T i ?
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MCQs:  Country A has the comparative advantage in ?
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MCQs:  In autarky, the relative price of wine, in terms of beer, in country A is ?
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MCQs:  In autarky, the relative price of X, in terms of Y in A would be ?
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MCQs:  If the countries were to trade along the lines of absolute advantage ?
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MCQs:  Country A has an absolute advantage in__________?
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MCQs:  Absolute advantage is determined by ?
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MCQs:  According to the Classical theory of international trade ?
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MCQs:  The classical trade theories of Smith and Ricardo predict that ?
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MCQs:  International trade is based on the nation that ?
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MCQs:  If Hong Kong and Taiwan have identical production possibilities curves that are subject to increasing opportunity costs ?
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MCQs:  With international trade, what would be the maximum number of DVDs that Japan would be willing to export to South Korea in exchange for each ton of steel ?
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MCQs:  With International trade, what would be the maximum amount of steel that South Korea would be willing to export to Japan in exchange for each DVD ?
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MCQs:  According to the Principle of absolute advantage Japan should ?
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MCQs:  The opportunity cost of one DVD in Japan is ?
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MCQs:  Unions tend to increase the disparity in pay between insiders and outsiders by ?
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MCQs:  Union might increase efficiency in the case Where they ?
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MCQs:  Which of the following is an example of a reason why firms might pay efficiency wages ?
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MCQs:  Which of the following government policies would fail to lower the unemployment rate ?
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