1Single Choice Question (1) What are the exceptions to the trade cycle? (Topic 1

Question

1Single Choice Question
(1) What are the exceptions to the trade cycle? (Topic 19) A. traditional handicraft goods B. synthetic materials C.electronic products D.office machinery
(2) Which product follow the product life cycle model? (Topic 19) A. agricultural products B. mining C. American cigarettes D. consumer durables
(3) Which factor that the economic growth of the country depends on is endogenous? (Topic 27) A. Geography B. Economic Policies C. Demographic trends D. Social-cultural factors
(4) Which factor that the economic growth of the country depends on is exogenous? (Topic 27) A. Political factors B. Human capital C. Openness to trade D. Research & Development
(5) Assume that Country A, in the absence of trade, finds itself relatively abundant in labor and relatively scarce in land. The factor endowment theory reasons that with free trade, the internal distribution of national income in Country A will change in favor of (Topic 8) A. Labor B.Land C.Both labor and land D.Neither labor nor land
(6 ).The Leontief paradox provided (Topic 12) A.Support for the principle of absolute advantage B.Support for the factor endowment model C.Evidence against the factor endowment model D.Evidence against the principle of absolute advantage
(7) According to the principle of comparative advantage, specialization and trade increase a nation’s total output since (Topic 1) A.Resources are directed to their highest productivity B.The output of the nation’s trading partner declines C.The nation can produce outside of its production possibilities curve D.The problem of unemployment is eliminated
(8) According to____, international trade produces a convergence of relative goods prices. This convergence, in turns, causes the convergence of the relative factor prices.( Topic 8) A. stolper-sammelson effect B. H-O proposition C. Factor price equalization proposition D. Rybczynski effect
(9) If Australia has more land per worker, and Belgium has more capital per worker, then if trade were to open up between these two countries, ____ (Topic8) A.the real income of capital owners in Australia would rise. B.the real income of labor in Australia would clearly rise. C.the real income of labor in Belgium would clearly rise. D.the real income of landowners in Belgium would fall.
(10) One way in which the Heckscher-Ohlin model differs from the Ricardo model of comparative advantage is by assuming that ___ is (are) identical in all countries. (Topic 9) A.factor of production endowments B.scale economies C.factor of production intensities D.technology
(11) If two countries were very different in their relative factor availabilities, then we would not expect which of the following to be empirically supported? (Topic7) A.The Heckscher - Ohlin Theorem B.The Factor Price Equalization Theorem. C.The Law of One Price D.The Law of Demand
(12) If some industries exhibit internal (firm specific) increasing returns to scale in each country, we should not expect to see ___( Topic 20) A.intra-industry trade between countries. B.perfect competition in these industries. C.inter-industry trade between countries. D.high levels of specialization in both countries.
(13) International trade based on external scale economies in both countries is likely to be carried out by a___( Topic 21) A.relatively large number of price competing firms. B.relatively small number of price competing firms. C.relatively small number of competing oligopolists. D.monopoly firms in each country/industry.
(14) The theory of absolute advantage was developed by(Topic 1) A.the Mercantilists B. David Hume C. Adam Smith D. David Ricardo 1Single Choice Question
(1) What are the exceptions to the trade cycle? (Topic 19) A. traditional handicraft goods B. synthetic materials C.electronic products D.office machinery
(2) Which product follow the product life cycle model? (Topic 19) A. agricultural products B. mining C. American cigarettes D. consumer durables
(3) Which factor that the economic growth of the country depends on is endogenous? (Topic 27) A. Geography B. Economic Policies C. Demographic trends D. Social-cultural factors
(4) Which factor that the economic growth of the country depends on is exogenous? (Topic 27) A. Political factors B. Human capital C. Openness to trade D. Research & Development
(5) Assume that Country A, in the absence of trade, finds itself relatively abundant in labor and relatively scarce in land. The factor endowment theory reasons that with free trade, the internal distribution of national income in Country A will change in favor of (Topic 8) A. Labor B.Land C.Both labor and land D.Neither labor nor land
(6 ).The Leontief paradox provided (Topic 12) A.Support for the principle of absolute advantage B.Support for the factor endowment model C.Evidence against the factor endowment model D.Evidence against the principle of absolute advantage
(7) According to the principle of comparative advantage, specialization and trade increase a nation’s total output since (Topic 1) A.Resources are directed to their highest productivity B.The output of the nation’s trading partner declines C.The nation can produce outside of its production possibilities curve D.The problem of unemployment is eliminated
(8) According to____, international trade produces a convergence of relative goods prices. This convergence, in turns, causes the convergence of the relative factor prices.( Topic 8) A. stolper-sammelson effect B. H-O proposition C. Factor price equalization proposition D. Rybczynski effect
(9) If Australia has more land per worker, and Belgium has more capital per worker, then if trade were to open up between these two countries, ____ (Topic8) A.the real income of capital owners in Australia would rise. B.the real income of labor in Australia would clearly rise. C.the real income of labor in Belgium would clearly rise. D.the real income of landowners in Belgium would fall.
(10) One way in which the Heckscher-Ohlin model differs from the Ricardo model of comparative advantage is by assuming that ___ is (are) identical in all countries. (Topic 9) A.factor of production endowments B.scale economies C.factor of production intensities D.technology
(11) If two countries were very different in their relative factor availabilities, then we would not expect which of the following to be empirically supported? (Topic7) A.The Heckscher - Ohlin Theorem B.The Factor Price Equalization Theorem. C.The Law of One Price D.The Law of Demand
(12) If some industries exhibit internal (firm specific) increasing returns to scale in each country, we should not expect to see ___( Topic 20) A.intra-industry trade between countries. B.perfect competition in these industries. C.inter-industry trade between countries. D.high levels of specialization in both countries.
(13) International trade based on external scale economies in both countries is likely to be carried out by a___( Topic 21) A.relatively large number of price competing firms. B.relatively small number of price competing firms. C.relatively small number of competing oligopolists. D.monopoly firms in each country/industry.
(14) The theory of absolute advantage was developed by(Topic 1) A.the Mercantilists B. David Hume C. Adam Smith D. David Ricardo 1Single Choice Question
(1) What are the exceptions to the trade cycle? (Topic 19) A. traditional handicraft goods B. synthetic materials C.electronic products D.office machinery
(2) Which product follow the product life cycle model? (Topic 19) A. agricultural products B. mining C. American cigarettes D. consumer durables
(3) Which factor that the economic growth of the country depends on is endogenous? (Topic 27) A. Geography B. Economic Policies C. Demographic trends D. Social-cultural factors
(4) Which factor that the economic growth of the country depends on is exogenous? (Topic 27) A. Political factors B. Human capital C. Openness to trade D. Research & Development
(5) Assume that Country A, in the absence of trade, finds itself relatively abundant in labor and relatively scarce in land. The factor endowment theory reasons that with free trade, the internal distribution of national income in Country A will change in favor of (Topic 8) A. Labor B.Land C.Both labor and land D.Neither labor nor land
(6 ).The Leontief paradox provided (Topic 12) A.Support for the principle of absolute advantage B.Support for the factor endowment model C.Evidence against the factor endowment model D.Evidence against the principle of absolute advantage
(7) According to the principle of comparative advantage, specialization and trade increase a nation’s total output since (Topic 1) A.Resources are directed to their highest productivity B.The output of the nation’s trading partner declines C.The nation can produce outside of its production possibilities curve D.The problem of unemployment is eliminated
(8) According to____, international trade produces a convergence of relative goods prices. This convergence, in turns, causes the convergence of the relative factor prices.( Topic 8) A. stolper-sammelson effect B. H-O proposition C. Factor price equalization proposition D. Rybczynski effect
(9) If Australia has more land per worker, and Belgium has more capital per worker, then if trade were to open up between these two countries, ____ (Topic8) A.the real income of capital owners in Australia would rise. B.the real income of labor in Australia would clearly rise. C.the real income of labor in Belgium would clearly rise. D.the real income of landowners in Belgium would fall.
(10) One way in which the Heckscher-Ohlin model differs from the Ricardo model of comparative advantage is by assuming that ___ is (are) identical in all countries. (Topic 9) A.factor of production endowments B.scale economies C.factor of production intensities D.technology
(11) If two countries were very different in their relative factor availabilities, then we would not expect which of the following to be empirically supported? (Topic7) A.The Heckscher - Ohlin Theorem B.The Factor Price Equalization Theorem. C.The Law of One Price D.The Law of Demand
(12) If some industries exhibit internal (firm specific) increasing returns to scale in each country, we should not expect to see ___( Topic 20) A.intra-industry trade between countries. B.perfect competition in these industries. C.inter-industry trade between countries. D.high levels of specialization in both countries.
(13) International trade based on external scale economies in both countries is likely to be carried out by a___( Topic 21) A.relatively large number of price competing firms. B.relatively small number of price competing firms. C.relatively small number of competing oligopolists. D.monopoly firms in each country/industry.
(14) The theory of absolute advantage was developed by(Topic 1) A.the Mercantilists B. David Hume C. Adam Smith D. David Ricardo

Explanation / Answer

3.Economic policy as it directly affects the economy.

4.political factors as it has no direct roles but indirectly politics is involved because the government takes all the decisions.

5.Land

The labour abundant country starts producing labour abundant goods. The price of labour falls and land rises.So, national income changes in favor of land.

14.Adam Smith

Please note that only 4 questions can be answered.

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