Country A has an absolute advantage in__________?

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. Country B has an absolute advantage in ?

   A. Product X
   B. Product Y
   C. Neither X nor Y
   D. Both X and Y

3. Country A has an absolute advantage in ?

   A. Beer
   B. Wine
   C. Both products
   D. neither products

4. 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

5. According to the Principle of absolute advantage Japan should ?

   A. Export steel
   B. Export DVDs
   C. Exports steel and DVDs
   D. There is no basis for gainful specialization and trade

6. Absolute advantage is determined by ?

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

7. If the countries were to trade along the lines of absolute advantage ?

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

8. 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

9. 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

10. 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