Top 250+ Solved Business Economics MCQ Questions Answer
Q. Comparative Advantage is expressed in _
a. Absolute Cost
b. Variable cost
c. Cost ratios
d. Marginal Cost
Q. England 1 unit wine =1/2unit cloth, Portugal 1 unit wine = 1 unit cloth. This is an example of
a. Comparative Cost
b. Absolute Cost
c. Relative Cost
d. Unequal Cost
Q. Comparative Advantage theory is based on _ value
a. Cost theory
b. Productivity theory
c. Quality theory
d. labor theory
Q. No change in technology, no transport cost, constant returns to scale - these assumptions make the Comparative Cost advantage theory __
a. Dynamic
b. Redundant
c. Static
d. Unacceptable
Q. If a country enjoys an absolute advantage in the production of all commodities then also trade is possible”. Who said this?
a. Adam Smith
b. David Ricardo
c. J.S.Mill
d. Alfred Marshall
Q. According to H-O theory, International trade is, but a pecial case of _ _ trade.
a. Inter-state
b. Intra state
c. Intra-Country
d. Inter-regional
Q. Commodity Y is Capital intensive if _ _
a. Ky / Ly = Kx / Lx
b. Ky / Ly < Kx /Lx
c. Ky /Ly > Kx / Lx
d. Ky > Kx
Q. If,England 1 wine = 1/2 cloth and if Portugal 1 wine = 1 cloth, this I an example of
a. Comparative advantage
b. Absolute Advantage
c. Similar Cost
d. Unequal Cost
Q. If Commodity Y requres 2 units of capital and 2 units of labor and commodity X requires 1 unit of capital and 4 units of labor then Y is
a. Labor intenive
b. Labor specific
c. Capital Intensive
d. Capital Specific
Q. Factor intensity is measured in _ terms
a. Absolute Cost
b. Factor ratios
c. Relative Cost
d. Frequency of capital labor
Q. Total amount of labor in Nation 1 is greater than labor in nation 2 if
a. TK1 /TL1 > TK2 /TL2
b. TK1 / TL1 < TK2/TL2
c. TK1 /TL1 = TK2/TL2
d. TL1 > TL2
Q. A nation is capital abundant if
a. PK1/PL1 < PK2/PL2
b. PK1/PL1>PK2/PL2
c. PK1/PL1 = PK2/PL2
d. PK1 < PK2