Question # 1

The _____ analyzes the income distribution effects of trade in the short run when resources are immobile among industries.

Choose an answer

Stolpher Samuelson theory

Factor endowment theory.

Specific factor theory

Over lapping demand theory

A nation wishing to reduce its current account deficit would be advised to.

Choose an answer

Engage in more government spending.

Reduce government taxes

Increase private investment spending

Decrease domestic consumption spending

Specific tariffs are collected as

Choose an answer

Fixed amount of money per unit traded

a percentage of the price of the product

A percentage of the quantity of imports

All of the above

International trade in good sand services is sometimes used as a substitute for all of the following except.

Choose an answer

Internationals movement of capital

International movement of labor

International movements of technology

Domestic production of different goods and services.

According the Hacksher-Ohlin model the source of comparative advantage is a country's

Choose an answer

Technology

Advertising

Factor endowments

both a and c

The gain from international trade are closely related to.

Choose an answer

the labor theory of value

How much the autarky price differs from international terms of trade change.

The fact that a country must lose from trade

All of the above

The term of trade is given by theprices.

Choose an answer

Paid to all goods exported by the home country

Received for all goods exported by the home country

Received for exports and paid for imports.

Of primary products as opposed to manufactured products.

Which industrialization policy has developing countries used which places emphasis on the comparative advantage principle as a guide to resource allocation.

Choose an answer

Export promotion

Import substitution

International commodity agreements

Multilateral contrracts.

Multinational corporations

Choose an answer

Always produce primary goods

Always produce manufactured goods

Products primary goods or manufactured goods

None of the above

A widely used indicator to differentiate developed countries from developing countries is.

Choose an answer

International trade per captia

Real income per capita

Unemployment per capita

Calories per capita

Which trade theory contends that a country that initially develops and exports a new product may eventually become an importer of it and may no lorger manufacture the product.

Choose an answer

Theory of factor endearments

Theory of overlapping demands

Economies of scale theory

Product life cycle theory.

The NAFTA is a

Choose an answer

Monetary union

Free trade area

Common market

Customs union

The movement to free international trade is most likely to generate short term unemployment in which industries'.

Choose an answer

Industries in which there are neither imports nor exports

Import competing industries.

Industries that sell to domestic and foreign buyers

Industries that sell to only foreign buyers

The institutional framework developed in 1974 to promote trade liberalization is known as.

Choose an answer

WTO

GATT

IMF

World bank

In today world most countries impose tariffs

Choose an answer

Only on imports

Only on exports

On both imports and exports

On imports exports and nontrade goods

Should international transpiration costs decrease, the effect on international trade would include a.

Choose an answer

Increase in the volume of trade

smaller gain from trade

Decline in the income of home producers

Decrease in the level of specialization production.

A depreciation of the dollar willhave its most pronounced impact on imports if the demand for imports is.

Choose an answer

Constant

Inelastic

Elastic

Unitary elastic

Which of the following strategies have developing countries not used to deal with the problem of unstable export markets.

Choose an answer

Multilateral contracts

Production and export controls

Buffer stock arrangements

Tariff rate quotes

The Hecksher Ohlin theory explains comparative advantage as the result of difference in countries.

Choose an answer

Relative abundance of various resources.

Relative costs of labor

Economies of large scale production.

Research and development expenditures.

Direct investment and security purchases are classified as.

Choose an answer

Capital account transactions

Current account transactions

Unilateral transfer transactions

Merchandise trade transactions

When imports from a higher cost supplier with in customs union replace imports from a lower cost supplier outside the custom union, there exists.

Choose an answer

Trade creation

Trade diversion

Dynamic welfare effects

Comprehensive welfare efffects

More Classes

Other Links

PPSC Economics Chapter 5 International Economics MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer