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

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. According to the principle of comparative advantage ?

   A. South Korea should export steel
   B. South Korea should export steel and DVDs
   C. Japan should export steel
   D. Japan should export steel and DVDs

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. Country A has the comparative advantage in ?

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

5. 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)

6. 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

7. Country B has the comparative advantage in ?

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

8. 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

9. The comparative advantage model of Ricardo was based on ?

   A. intraindustry specialization and trade
   B. interindustry specialization and trade
   C. demand conditions underlying specialization and trade
   D. income conditions underlying specialization and trade

10. In his empirical test of comparative advantage Wassily Leontief found that ?

    A. U.S exports are capital intensive relative to U.S imports
    B. U.S imports are labor intensive relative to U.S exports
    C. U.S exports are neither labor nor capital intensive
    D. None of the above