MCQs of Economics – Foundations Of Modern Trade Theory

The opportunity cost of one DVD in Japan is:

The opportunity cost of one DVD in South Korea is:

According to the Principle of absolute advantage Japan should:

According to the principle of comparative advantage:

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:

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:

The earliest statement of the principle of comparative advantage is associated with:

If Hong kong amd Taiwan have identical production possibilities curves that are subject to increasing opportunity costs:

If the international terms of trade settle at a level that is between each country’s opportunity cost:

International trade is based on the nation that:

Mercantilism:

The classical trade theories of Smith and Ricardo predict that:

The gains from international trade are closely related to:

According to the Classical theory of international trade:

In the classical model of Ricardo, the direction of trade is determined by:

Absolute advantage is determined by:

Comparative advantage is determined by:

Country A has an absolute advantage in

Country B has an absolute advantage in

If the countries were to trade along the lines of absolute advantage:

If countries were to trade along the lines of comparative advantage

In autarky, the relative price of X, in terms of Y in A would be:

Country A has an absolute advantage in:

In autarky, the relative price of wine, in terms of beer, in country A is:

In autarky the relative price of wine, in terms of beer, in Country B is:

Country A has the comparative advantage in:

Country B has the comparative advantage in:

The Relative price (MRT)of S in terms of T i:

The relative price (MRT) of T in terms of S is:

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

If the relative Price (MRT) of T were to increase then the price line would:

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

If a country has a liner (downward sloping) production possibilities frontier, then production is said to be subjected to:

The terms of trade is given by the prices:

Which countries terms of trade improved between 1990 and 2000?

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

In aukarky, when a community maximizes its standard of living, its production and consumption point is:

In autarky equilibrium

In autarky, when a community maximizes its standard of living its production point is:

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

Under free trade, Canada would not realize any gains from trade with Sweden if Canada:

John Stuart Mill was the founder of the:

Dynamic gains from trade could result from:

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

G. MecDougall showed in his tests that:

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