In autarky the relative price of wine, in terms of beer, in Country B is ?

Related Mcqs:

1. 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

2. 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

3. 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

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. Suppose the price level falls but suppliers only notice that the price of their particular product has fallen Thinking there has been a fall in the relative price of their product they cut back on production, This is a demonstration of the ?

   A. misperceptions theory of the short run aggregate supply curve
   B. classical dichotomy theory of the short run aggregate supply curve
   C. sticky price theory of the short run aggregate supply curve
   D. sticky wage theory of the short run aggregate supply curve

6. The Relative price (MRT)of S in terms of T i ?

   A. 2
   B. 1/2
   C. 00
   D. 1000

7. The relative price (MRT) of T in terms of S is ?

   A. 2
   B. 1/2
   C. 500
   D. 1000

8. In autarky equilibrium ?

   A. Production equals consumption
   B. Exports equal imports
   C. there is no trade
   D. All of the above

9. 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

10. If the relative price (MRT) of S were to increase, then the price line would ?

    A. shift out in a parallel fashion
    B. shift in a parallel fashion
    C. Become steeper
    D. Become flatter