Which of the following was a socialist country ?

Related Mcqs:

1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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