Trade-offs are required because wants are unlimited, and resources are ?

Related Mcqs:

1. Which approach predicts that is an economy operates a full employment and faces trade deficit currency devaluation will improve the trade balance only if domestic spending is cut thus freeing resources to produce exports ?

   A. the absorption approaches
   B. the Marshall Lerner approach
   C. the monetary approach
   D. the elasticities approach

2. When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?

   A. trade diversion
   B. trade channeling
   C. trade creation and trade diversion
   D. trade creation

3. 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

4. Following World War II the United States and other countries sought to liberalize trade among each other the first major postwar step toward trade liberalization was the ?

   A. General Agreement on Tariffs and Trade
   B. World Trade Organization
   C. Smoot Hawley Organization
   D. McKinley Agreement on Trade policy

5. Which round of international trade negotiations resulted in the creation of the World Trade Organization ?

   A. Kennedy Round of 1964-1967
   B. Tokyo Round of 1973-1979
   C. Uruguay Round of 1986-1993
   D. Doha Round of 2003-2007

6. 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

7. With free trade suppose that the rest of the world can supply computers to Norway at a price of $1,500 Norway’s imports will now equal. Compared to What occurred in the absence of trade, Norway’s consumers surplus will _____ and its producer surplus will ____. Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper ?

   A. 1,600 computers, decrease, increase
   B. 1,600 computers, increase, decrease
   C. 1,200 computers, decrease, increase
   D. 1,200 computers, increase, decrease

8. Given free trade, small nations tend to benefit the most from trade since they ?

   A. Are more productive than their large trading partners
   B. Are less productive than their large trading partners
   C. Have demand preferences and income levels lower than their large trading partners
   D. Realize terms of trade lying near the MRTs of their large trading partners

9. Under free trade, Canada would not realize any gains from trade with Sweden if Canada ?

   A. Trades at Canada’s marginal rate of transformation
   B. Trade at Sweden’s marginal rate of transformation
   C. Specializes completely in the production of its export good
   D. Specializes partially in the production of its exports goods

10. When did World Trade Organization replace General Agreement on Tariffs and Trade (GATT)?

    A. 1st January 1995
    B. 1st January 1998
    C. 1st December 1999
    D. 1st June 2000

    Submitted by: Syed Nizakat Ali Shah