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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.

If tastes are identical between countries, then comparative advantage is determined by ?

A supply condition only

B demand conditions only

C supply and demand conditions

D can’t tell without more information

Review Detailed Answer

Correct Answer: supply condition only

Industrial policies intended to foster comparative advantage for domestic industries could result in the implementation of ?

A research and development subsidies

B loan guarantees

C low interest rate loans

D All of the above

Review Detailed Answer

Correct Answer: All of the above

The product cycle theory of trade is essentially a ?

A static, short run trade theory

B dynamic long run trade theory

C zero-sum theory of trade

D negative-sum theory of trade

Review Detailed Answer

Correct Answer: dynamic long run trade theory

The Heckscher-Ohl in model rules out the classical model’s basis for trade by assuming that _________ is (are) identical between countries?

A factor endowments

B factor intensities

C technology

D opportunity costs

Review Detailed Answer

Correct Answer: technology

Declining costs per unit of output results from international trade especially if ?

A International trade affords producers monopoly power

B National governments levy imports tariffs and quotas

C Producing goods entails increasing costs

D Economies of scale exist for producers

Review Detailed Answer

Correct Answer: Economies of scale exist for producers

Dynamic comparative advantage theory ?

A helps explain why some nations use industrial policy to support potentially competitive new firms

B cannot explain strategic competition between firms such as Boeing and Airbus

C Is another name for Ricardo’s comparative advantage theory?

D None of the above

Review Detailed Answer

Correct Answer: helps explain why some nations use industrial policy to support potentially competitive new firms

That the division of labor is limited by the size of the market best applies to which explanation of trade ?

A Factor endowment theory

B Product life cycle theory

C Economies of scale theory

D Overlapping demand theory

Review Detailed Answer

Correct Answer: Economies of scale theory

_____ 1954 study of U.S trade patterns showed that U.S exports were labor-intensive compared with U.S imports, even though the United States was widely regarded as a relatively capital-abundant nation ?

A Paul Samuelson’s

B Wolfgang Stolpher’s

C Staffan Linder’s

D Wassily Leontief’s

Review Detailed Answer

Correct Answer: Wassily Leontief’s

For the United States empirical studies indicate that over the past two hundred years the cost of international transportation relative to the value of U.S imports has ?

A increased

B Decreased

C Not changed

D Any of the above

Review Detailed Answer

Correct Answer: Decreased

The trade model of the Swedish economies Heckscher and Ohlin maintains that ?

A Absolute advantage determines the distribution of the gains from trade

B Comparative advantage determines the distribution of the gains from trade

C The division of labor is limited by the size of the world market

D A country exports goods for which its resource endowments are most suited

Review Detailed Answer

Correct Answer: A country exports goods for which its resource endowments are most suited

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

If tastes are identical between countries, then comparative advantage is determined by ?

Industrial policies intended to foster comparative advantage for domestic industries could result in the implementation of ?

The product cycle theory of trade is essentially a ?

The Heckscher-Ohl in model rules out the classical model’s basis for trade by assuming that _________ is (are) identical between countries?

Declining costs per unit of output results from international trade especially if ?

Dynamic comparative advantage theory ?

That the division of labor is limited by the size of the market best applies to which explanation of trade ?

_____ 1954 study of U.S trade patterns showed that U.S exports were labor-intensive compared with U.S imports, even though the United States was widely regarded as a relatively capital-abundant nation ?

For the United States empirical studies indicate that over the past two hundred years the cost of international transportation relative to the value of U.S imports has ?

The trade model of the Swedish economies Heckscher and Ohlin maintains that ?