According to the principle of comparative advantage ?

Related Mcqs:

1. 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 ?

   A. Adam Smith B. David Ricardo C. David Smith D. Adam Ricardo...

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

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

3. 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...

4. 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...

5. 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)...

6. Country A has the comparative advantage in ?

   A. Wine B. Beer C. Both wine and beer D. Neither wine nor beer...

7. Comparative advantage is determined by ?

   A. actual differences in labor productivity between countries B. relative differences in labor productivity between countries C. Both (a) and (b) D. Neither (a) nor (b)...

8. If countries were to trade along the lines of comparative advantage ?

   A. A would export X to B B. A would export Y to B C. Neither country would want to trade D. None of the above...

9. Country B has the comparative advantage in ?

   A. Wine B. Beer C. Both wine and beer D. Neither wine nor beer...

10. LDCs often have a comparative advantage in the production of ?

    A. primary products B. intermediate products C. manufactured products D. financial services...