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
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Related Mcqs:
- In autarky, the relative price of wine, in terms of beer, in country A is ?
- A. 1W = 1B B. 1W = 2B C. 1W = 3B D. 1W = 1/3B...
- In autarky the relative price of wine, in terms of beer, in Country B is ?
- A. 1W = 3B B. 1W = 4 1/2B C. 1W = 5B D. 1W = 6B...
- 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...
- In autarky, the relative price of X, in terms of Y in A would be ?
- A. 1/2 Y B. 3/4 Y C. 1 Y D. 4/3 Y...
- A way of helping depressed regions by having lower wages lower local taxes and lower unemployment benefit has been suggested as ?
- A. market-orientated economists B. left-wing theorists C. Keynesian. D. new-Keynesian...
- A way of helping depressed regions by having lower wages, lower local taxes and lower unemployment benefit has been suggested as ?
- A. market orientated economists B. left-wing theorists C. Keynesian D. New-Keynesian...
- 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...
- In autarky equilibrium ?
- A. Production equals consumption B. Exports equal imports C. there is no trade D. All of the above...
- In autarky, when a community maximizes its standard of living its production point is ?
- A. below the production possibility frontier B. on the production possibility frontier C. above the production possibility frontier D. can’t tell without more information...
- 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...
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