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Economics Mcqs 4423 MCQs [All-Courses]

Economics MCQs cover fundamental concepts of microeconomics and macroeconomics, including demand and supply, inflation, national income, and economic policies.
This section is designed to strengthen analytical skills and conceptual understanding for competitive examinations.
Highly useful for PPSC, FPSC, NTS, OTS, KPPSC, and other testing services preparation.

The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?

A tastes

B technology

C factor/resource

D opportunity cost

Review Detailed Answer

Correct Answer: factor/resource

By reducing the volume of trade transportation costs tend to ?

A stop the process of product price equalization and factor price equalization before they are complete:

B ensure that the process of product price equalization and factor price equalization are complete

C eliminate all of the feasible gains from international trade

D maximize all of the feasible gains from international trade

Review Detailed Answer

Correct Answer: stop the process of product price equalization and factor price equalization before they are complete:

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

A Stolpher-Samuelson theory

B factor endowment theory

C specific factors theory

D overlapping demand theory

Review Detailed Answer

Correct Answer: specific factors theory

The comparative advantage model of Ricardo was based on ?

A intraindustry specialization and trade

B interindustry specialization and trade

C demand conditions underlying specialization and trade

D income conditions underlying specialization and trade

Review Detailed Answer

Correct Answer: interindustry specialization and trade

According to the Heckscher-Ohlin model the source of comparative advantage is a country’s ?

A technology

B advertising

C factor endowments

D both (a) and (c)

Review Detailed Answer

Correct Answer: factor endowments

Difference in environmental standards or other government regulations among nations ?

A have no impact on patterns of international trade

B have tended to make U.S steel companies more competitive internationally

C can affect production costs and thus alter comparative advantages and trade patterns

D have been eliminated by the nations participating in NAFTA

Review Detailed Answer

Correct Answer: can affect production costs and thus alter comparative advantages and trade patterns

Intra-industry trade theory ?

A Explains why the United States might export autos and import clothing

B Explains why the United States might export and import differentiated versions of the same product such as different types of autos

C Assumes that transport costs are very low or do not exist

D ignores seasonal considerations for agricultural goods

Review Detailed Answer

Correct Answer: Explains why the United States might export and import differentiated versions of the same product such as different types of autos

Should international transportation costs decrease the effect on international trade would include a (an) ?

A increase in the volume of trade

B Smaller gain from trade

C Decline in the income of home producers

D Decrease in the level of specialization in production

Review Detailed Answer

Correct Answer: increase in the volume of trade

According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?

A similar endowments of natural resources

B similar levels of technology

C similar per-capita incomes

D similar wage levels

Review Detailed Answer

Correct Answer: similar per-capita incomes

According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ?

A Devote excessive amounts of resources to agricultural production

B Devote insufficient amounts of resources to agricultural production

C Export products that are land-intensive

D Import products that are land-intensive

Review Detailed Answer

Correct Answer: Export products that are land-intensive

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?

By reducing the volume of trade transportation costs tend to ?

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

The comparative advantage model of Ricardo was based on ?

According to the Heckscher-Ohlin model the source of comparative advantage is a country’s ?

Difference in environmental standards or other government regulations among nations ?

Intra-industry trade theory ?

Should international transportation costs decrease the effect on international trade would include a (an) ?

According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?

According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ?