Top 250+ Solved International Economics MCQ Questions Answer
Q. Trade In differentiated products refers to
a. intra industry trade
b. inter industry trade
c. trade based on economies of scale
d. non of the above
Q. The terms of trade of developing countries have a secular tendency to
a. improve
b. deteriorate
c. first improve and then deteriorate
d. remain the same
Q. The opportunity cost theory assumes that
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
Q. If a nation gains from trade its consumption point is
a. on the production possibility frontier (ppc
b. inside the ppc
c. above the ppc
d. any of the above
Q. Given below is a table whowing the maximum amount of wheat and cloth that the UK and U S could produce if they fully utilize all the factors of production with the best technology available indicate the comparative advantage of U K and U S. U K U S Bushels of wheat 50 120 Meters of Cloth 150 80
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
Q. The H O theory postulates that as a result of trade the differences in factor pricesbetween nations
a. diminishes
b. increases
c. remains unchanged
d. any of the above
Q. Leontiff paradox refers to the result that the U S
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
Q. The Exchange rate is kept the same in all parts of the market through
a. exchange rate arbiterage
b. interest arbiterage
c. hedging
d. speculation.
Q. Hedcging refers to
a. acceptance of foreign exchange risk
b. covering foreign exchange risk
c. foreign exchange speculation
d. foreign exchange arbiterage
Q. If { } > { } when K= capital and L= labour, and A and B are countries then
a. counry a is labour abundant
b. counry a is capital abundant
c. counry b is labour abundant
d. counry b is capital abundant
Q. If { } > { } when K= capital and L= labour, and A and B are countries then
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
Q. In Autarchy a nations PPC also shows its
a. consumption function
b. sales frontier
c. profit frontier
d. factor endowment
Q. Opportunity cost theory
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
Q. The paradox that Growth can make a country worse off is termed as
a. leontiff paradox
b. rybezinsky theorem
c. immiserising growth
d. triffin dilemma