The comparative advantage comes if each trading partners has a product that will bring a better price in another country than it will at home. Which economist proposed the principle of comparative advantage ?

Related Mcqs:

1. Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?

   XA. wages and rents should fall in Country A
   B. wages and rents should rise in Country A
   C. wages should rise and rents should fall in Country A
   D. wages should fall and rents should raise in Country A

2. A country can still gain from trading certain goods even though its trading partners can produce those goods more cheaply. How is known this principle ?

   A. Relative Advantage
   B. Complete Advantage
   C. Comparative Edge
   D. Comparative Advantage

3. A country can still gain from trading certain goods even though its trading partners can produce those goods more cheaply. How is known this principle?

   A. Relative Advantage
   B. Complete Advantage
   C. Comparative Edge
   D. Comparative Advantage

4. The theory that states that a country has a comparative advantage in the production of a product if that country is relatively well endowed with inputs used intensively in the production of that product is the?

   A. Ricardo Malthus theorem
   B. Heckscher Ohlin theorem
   C. Lucas-Laffer theorem
   D. Friedman Samuelson theorem

5. A country has a comparative advantage in the production of a product if the good’s _____ cost in different from the good’s _____ cost in another country ?

   A. resource; resource
   B. foreign exchange money
   C. opportunity; opportunity
   D. money; opportunity

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

   A. export promotion
   B. import promotion
   C. international commodity agreements
   D. multilateral contracts

7. According to the principle of comparative advantage ?

   A. South Korea should export steel
   B. South Korea should export steel and DVDs
   C. Japan should export steel
   D. Japan should export steel and DVDs

8. The earliest statement of the principle of comparative advantage is associated with ?

   A. Adam Smith
   B. David Ricardo
   C. Eli Heckscher
   D. Berti IOhlin

9. Mention an international trade policy competitive devaluation and increased protective barriers that one country institute to gain at the expense of its trading partners ?

   A. Nationalist policy
   B. Domestic policy
   C. Protectionist policy
   D. Beggar-thy-beighbour

10. The Setrite Corporation produce chairs. An economist working for the firm predicts that if people’s incomes rise next year, then the demand for our chairs will for our chairs will increase ceteris paribus The accuracy of the economist’s prediction depends on whether the chairs Setrite Produce ?

    A. have few substitutes.
    B. are normal goods
    C. have few complementary goods.
    D. have many complementary goods.