A. Is the philosophy of free international trade?
B. Was a system of export promotion and barriers to imports practiced by governments?
C. Was praised by Adam Smith in the Wealth of Nations
D. Both (a) and (c)
Related Mcqs:
- The economic policy of mercantilism first developed during the ?
A. Age of Exploration
B. Enlightenment
C. Cold War
D. Green Revolution - One principle in the theory of mercantilism is that colonies should be_____________?
A. granted independence as soon as possible
B. Considered an economic burden for the colonial power
C. encouraged to develop their own industries
D. acquired as markets and sources of raw materials - If Hong Kong and Taiwan have identical production possibilities curves that are subject to increasing opportunity costs ?
A. Trade would depend on difference in demand conditions
B. Trade would depend on economies of large-scale production
C. Trade would depend on the use of different currencies
D. There would be no basis for gainful trade - 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 - If a country has a bowed out (concave to the origin) production possibility frontier then production is said to be subject to ?
A. constant opportunity costs
B. decreasing opportunity costs
C. first increasing and then decreasing opportunity costs
D. increasing opportunity costs - The terms of trade is given by the prices ?
A. Paid for all goods exported by the home country
B. Received for all goods exported by the home country
C. Received for exports and paid for imports
D. Of primary products as opposed to manufactured products - G. MacDougall’s empirical results can be interpreted as ?
A. evidence against the classical model
B. evidence against the Heckscher-Ohlin model
C. Support for the Ricardian modal
D. Support for the Heckscher-Ohlin model - In the classical model of Ricardo, the direction of trade is determined by ?
A. Absolute advantage
B. Comparative advantage
C. Physical advantage
D. Which way the wind blows - The relative price (MRT) of T in terms of S is ?
A. 2
B. 1/2
C. 500
D. 1000 - Under free trade, Canada would not realize any gains from trade with Sweden if Canada ?
A. Trades at Canada’s marginal rate of transformation
B. Trade at Sweden’s marginal rate of transformation
C. Specializes completely in the production of its export good
D. Specializes partially in the production of its exports goods
