International Economics solved MCQs

a. intra industry trade

B. inter industry trade

c. trade based on economies of scale

d. non of the above

a. improve

B. deteriorate

c. first improve and then deteriorate

d. remain the same

a. labour is the only factor of production

B. the price or the cost of a commodity can be determined by the labour content in it

c. labour is homogeneous

d. non of the above

a. on the production possibility frontier (ppc

B. inside the ppc

c. above the ppc

d. any of the above

a. us have comparative advantage in cloth and u k have comparative advantage in wheat

B. u k have comparative advantage in cloth and us have comparative advantage in wheat

c. us have comparative advantage in cloth and wheat

d. uk have comparative advantage in cloth wheat

a. 4

B. 2

c. 1

d. ½

a. diminishes

B. increases

c. remains unchanged

d. any of the above

a. exports are more capital intensive than imports

B. exports are more capital intensive than u s import substitutes

c. imports are more capital intensive than u s exports

d. import substitutes are more capital intensive than u s exports

a. exchange rate arbiterage

B. interest arbiterage

c. hedging

d. speculation.

a. acceptance of foreign exchange risk

B. covering foreign exchange risk

c. foreign exchange speculation

d. foreign exchange arbiterage

a. counry a is labour abundant

B. counry a is capital abundant

c. counry b is labour abundant

d. counry b is capital abundant

a. in counry a relative price of labour is low

B. in counry a relative price of capital is low

c. in counry b relative price of labour is low

d. non of the above

a. consumption function

B. sales frontier

c. profit frontier

d. factor endowment

a. is anti thesis of recardian theory

B. is a synthesis of recardian and smiths theory

c. is a reconstruction of the recardian theory in terms of alternative cost.

d. non of the above

a. leontiff paradox

B. rybezinsky theorem

c. immiserising growth

d. triffin dilemma

a. the factor price equalization theorem

B. rybezinsky theorem

c. leontiff paradox

d. cascading effect

a. internal equilibrium price ratio

B. the marginal rate of transformation

c. increasing returns to scale

d. all the above

a. counry a is labour abundant

B. counry a is capital abundant

c. counry b is labour abundant

d. counry b is capital abundant

a. it is accompanied by a decline in short term interest rate

B. foreign demad for exports is is elastic

c. demand for forign imports is inelastic

d. non of the above

a. current account

B. capital account

c. official reserve account

d. all the above

a. two regions of a country

B. two countries

c. two commodities produced in different countries

d. non of the above

a. keynesianism

B. individualism

c. socialism

d. mercantilism.

a. export or perish.

B. strict focus on the wealth accumulation through protectionism.

c. no simultaneous gains or sharing of gains among countries are possible. one country can benefit only at the cost of other countries.

d. all the above.

a. j s mill

B. david recardo

c. karl marx

d. non of the above

a. the difference in absolute advantage

B. the difference in comparative advantage

c. difference in factor endowments

d. non of the above.