McqMate
Chapters
| 1. |
What are the four factor endowments? |
| A. | national resources, labor, physical capital and human capital |
| B. | types of technology |
| C. | material inputs used up in the process of production |
| D. | international differences in climate |
| Answer» A. national resources, labor, physical capital and human capital | |
| 2. |
The Heckscher- Ohlin model is principally focused on what aspect of economics? |
| A. | international trade |
| B. | supply and demand |
| C. | normative economics |
| D. | production possibility frontier |
| Answer» A. international trade | |
| 3. |
A no-trade world will have which of the following characteristics: |
| A. | countries will have same relative endowments of production factors |
| B. | consumers across countries will have identical and homogenous tastes |
| C. | there will be no distortions or externalities |
| D. | all of the above |
| Answer» D. all of the above | |
| 4. |
Transportation cost of trade affects: |
| A. | pattern of trade |
| B. | boundaries between tradable and non-tradable goods |
| C. | global supply chains |
| D. | all of the above |
| Answer» D. all of the above | |
| 5. |
International Trade is most likely to generate short-term unemployment in: |
| A. | industries in which there are neither imports nor exports |
| B. | import-competing industries |
| C. | industries that sell to domestic and foreign buyers. |
| D. | industries that sell to only foreign buyers |
| Answer» B. import-competing industries | |
| 6. |
What was the first economic theory of international trade to be developed? |
| A. | the theory of mercantilism |
| B. | the theory of comparative advantage |
| C. | the theory of absolute advantage |
| D. | the heckscher-ohlin theory |
| Answer» A. the theory of mercantilism | |
| 7. |
According to Adam Smith, the trade between countries should happen _____. |
| A. | naturally according to the market forces |
| B. | under government regulation |
| C. | using factors that are available |
| D. | only when a country has an absolute advantage |
| Answer» D. only when a country has an absolute advantage | |
| 8. |
If a nation has an open economy it means that the nation: |
| A. | allows private ownership of capital. |
| B. | has flexible exchange rates |
| C. | has fixed exchange rates |
| D. | conducts trade with other countries |
| Answer» D. conducts trade with other countries | |
| 9. |
International trade forces domestic firms to become more competitive in terms of |
| A. | the introduction of new products |
| B. | product design and quality |
| C. | product price |
| D. | all of the above |
| Answer» D. all of the above | |
| 10. |
The movement to free international trade is most likely to generate short-term unemployment in which industries |
| A. | industries in which there are neither imports nor exports |
| B. | import-competing industries. |
| C. | industries that sell to domestic and foreign buyers |
| D. | industries that sell to only foreign buyers |
| Answer» B. import-competing industries. | |
| 11. |
According to the principle of comparative advantage: |
| A. | south korea should export steel |
| B. | south korea should export steel and dvds |
| C. | japan should export steel |
| D. | japan should export steel and dvds |
| Answer» A. south korea should export steel | |
| 12. |
Country A has an absolute advantage in |
| A. | product x |
| B. | product y |
| C. | neither x nor y |
| D. | both x and y |
| Answer» B. product y | |
| 13. |
Globalization refers to: |
| A. | lower incomes worldwide |
| B. | less foreign trade and investment |
| C. | global warming and their effects |
| D. | a more integrated and interdependent world |
| Answer» D. a more integrated and interdependent world | |
| 14. |
Comparative Cost Trade Theory is given by |
| A. | adam smith |
| B. | david ricardo |
| C. | gottfried haberle |
| D. | heckscher ohlin |
| Answer» B. david ricardo | |
| 15. |
……………...is the payment method most often used in International Trade which offers the exporter best assurance of being paid for the products sold internationally. |
| A. | bill of lading |
| B. | letter of credit |
| C. | open account |
| D. | drafts |
| Answer» B. letter of credit | |
| 16. |
Key controllable factors in global marketing are: |
| A. | government policy and legislation |
| B. | social and technical changes |
| C. | marketing activities and plans |
| D. | all of the above. |
| Answer» C. marketing activities and plans | |
| 17. |
The first phase of globalization started around 1870 and ended with ….. |
| A. | world war i |
| B. | world war ii |
| C. | the establishment of gatt |
| D. | in 1913 when gdp was high |
| Answer» A. world war i | |
| 18. |
According to this theory, the holdings of a country’s treasure primarily in the form of gold constituted its wealth. |
| A. | gold theory |
| B. | ricardo theory |
| C. | mercantilism |
| D. | hecksher theory |
| Answer» C. mercantilism | |
| 19. |
The Theory of Absolute Cost Advantage is given by |
| A. | david ricardo |
| B. | adam smith |
| C. | f w taylor |
| D. | ohlin and heckscher |
| Answer» B. adam smith | |
| 20. |
The Theory of Relative Factor Endowments is given by |
| A. | david ricardo |
| B. | adam smith |
| C. | c. f w taussig |
| D. | ohlin and hecksher |
| Answer» D. ohlin and hecksher | |
| 21. |
The theory of comparative cost advantage is given by |
| A. | david ricardo |
| B. | adam smith |
| C. | f w taussig |
| D. | ohlin and heckscher |
| Answer» A. david ricardo | |
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