Which industrialization policy have developing countries used which places emphasis on the comparative advantage principle as a guide to resource allocation ?

Related Mcqs:

1. Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero marginal cost of study production. If ABC publishing engages in tying the two products its best strategy is to charge a combined price of ?

   A. Rs 60
   B. Rs 90
   C. Rs 85
   D. Rs 75

2. Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero-marginal cost of study production. If ABC publishing charges separate price for both products its best strategy is to charge price that when combined, total ?

   A. Rs 85
   B. Rs 75
   C. Rs 80
   D. Rs 60

3. 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

4. Hong Kong and South Korea are examples of developing nations that have recently pursued ________ industrialization policies?

   A. import substitution
   B. export promotion
   C. commercial dumping
   D. multilateral contract

5. 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

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

   A. Adam Smith
   B. David Ricardo
   C. Eli Heckscher
   D. Berti IOhlin

7. The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries ?

   A. Economies of large-scale production
   B. Relative abundance of various resources
   C. Relative costs of labor
   D. Research and development expenditures

8. If tastes are identical between countries, then comparative advantage is determined by ?

   A. supply condition only
   B. demand conditions only
   C. supply and demand conditions
   D. can’t tell without more information

9. 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

10. The policy that has been the most successful in increasing agricultural output in developing countries is ?

    A. mechanization
    B. land reform
    C. import substitution
    D. produce marketing boards