Top 250+ Solved International Economics MCQ Questions Answer
Q. The analysis method used in Leontief’s study
a. factor price equalization theorem
b. double entry book keeping system
c. input – output analysis
d. none of the above
Q. According to HO Model, India should import ______ abundant goods
a. labour
b. capital
c. human capital
d. natural resources
Q. When a commodity is produced with low K/L ratio that commodity is ______intensive commodity
a. labour
b. capital
c. human capital
d. natural resources
Q. A situation where one commodity is capital intensive in one country and labourintensive in another country is called
a. opportunity cost
b. factor price equalization
c. leontiff paradox
d. faction intensity reversal
Q. According to Rybczyski theorem commodity price should be
a. constant
b. increasing
c. decreasing
d. either increasing or decreasing
Q. Product transformation curve is also called
a. production indifference curves
b. production possibility frontier
c. isoquants
d. all the above
Q. Current and capital accounts are examples of
a. autonomous transactions
b. accommodating transactions
c. unilateral transactions
d. balance of trade
Q. Which of the following is NOT true?
a. Small countries depend more on trade than large countries.
b. U.S. imports exceed U.S. exports.
c. Economists believe that international trade is beneficial for all countries involved in it, in most cases.
d. Imports cannot exceed exports for an extended period of time.
Q. The term "gains from trade" describes:
a. The fact that when two countries trade, both are better off.
b. Consumer surplus.
c. Profits made by businessmen involved in international trade.
d. Producer surplus.
Q. Why do some people argue against free international trade?
a. Trade alters the distribution of income between broad groups of people.
b. Free trade threatens our country's security.
c. There is disagreement on whether or not there are gains from trade.
d. The U.S. is a large country and therefore does not gain from international trade.
Q. Which of the following theories was proposed by David Ricardo?
a. Theory of differences in labor productivity.
b. Theory of differences in climate and resources.
c. Theory of random components determining the pattern of trade.
d. Theory of differences in factor endowments.
Q. What are most trade policies driven by?
a. Conflicts of interest between nations.
b. Conflicts of interest within nations.
c. Disagreements regarding who should produce certain products.
d. Disagreements on the prices of major commodities.