I- Holland
II- Soviet Union
III- China
IV- India
A. I and II only
B. II and III only
C. III and IV only
D. I and IV only
Related Mcqs:
- 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 - According to Oskar Lange’s model socialist enterprises should produce where ?
A. The monopoly profit maximization rule applies
B. Product price equals marginal cost
C. marginal revenue equals average cost
D. total revenue equals total cost - Term a tax that is levied by a country of source on income paid, usually on dividends remitted to the home country of the firm operating in a foreign country?
A. Wealth tax
B. Withholding tax
C. Income tax
D. None of these - If two countries A and B are member of a currency union and there is a shift in consumer preferences away from the goods of country A and towards those of country B than which one of the following would help to offset the effect of the resulting changes in aggregate demand in A and B on inflation and unemployment in the tow countries ?
A. A high degree of labour mobility between the tow countries
B. An increase in government spending in country (A)
C. A depreciation in the foreign exchange value of the common currency
D. A low degree of capital mobility between the two countries - Term a country’s decision to tie the value of its currency to another country’s currency gold or a basket of currencies ?
A. Pagged exchanged rate
B. Fixed exchange rate
C. Relative exchange rate
D. Knotted exchange rate - 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 - The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?
A. tastes
B. technology
C. factor/resource
D. opportunity cost - The price of one country’s currency in terms of another country’s currency is the ?
A. exchange rate
B. balance of trade
C. terms of trade
D. currency validation - 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 - An agreement between a borrower country and the International Monetary Fund in which the country agrees to revamp its economic policies to provide incentives for higher export earnings and lower imports is a ?
A. debt rescheduling agreement
B. debt service agreement
C. program for growth
D. stabilization program
