Once a country is wealthy ?

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. When wealthy alumni provide charitable contributions to their universities to reduce the tuition payments of current students it is an example of ?

   A. an attempt to internalize a positive externality
   B. an attempt to internalize a negative externality
   C. a Pigouvian tax
   D. a command-and-control policy

3. If a fisher must sell all of his daily catch before it spoils for whatever price he is offered once the fish are caught the fisherman’s price elasticity of supply for fresh fish is ?

   A. zero
   B. infinite
   C. one
   D. unable to be determined form this information

4. Term a tax that is levied by a country of source on income paid, usually on dividends remitted to the home country of the firm operating in a foreign country?

   A. Wealth tax
   B. Withholding tax
   C. Income tax
   D. None of these

5. 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

6. 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

7. Trade creation will more likely outweigh trade diversion for Country X that forms a customs union if the level of tariffs in Country X prior to the customs union is ________ and the total number of countries forming the customs union is _________?

   A. relatively high; relatively large
   B. relatively high; relatively small
   C. relatively low ; relatively large
   D. relatively low ; relatively small

8. If the autarky price of S were lower in country A than in country B then if trade were allowed ?

   A. A would likely export S to B
   B. A would likely import S from B
   C. neither country would want to trade
   D. None of the above

9. The price of one country’s currency in terms of another country’s currency is the ?

   A. exchange rate
   B. balance of trade
   C. terms of trade
   D. currency valuation

10. An agreement between a borrower country and the International Monetary Fund in which the country agrees to revamp its economic policies to provide incentives for higher export earnings and lower imports is a ?

    A. debt rescheduling agreement
    B. debt service agreement
    C. program for growth
    D. stabilization program