No. 2 3 45 6 7 89 10 Answer 1. Which of the following is not a major concern of
ID: 1159059 • Letter: N
Question
No. 2 3 45 6 7 89 10 Answer 1. Which of the following is not a major concern of international economic theory? A) protectionism B) the balance of payments C) exchange rate determination D) bilateral trade relations with China 2. The gravity model suggests that over time A) trade between neighboring countries will increase. B) trade between all countries will increase. C) the value of trade between two countries will be proportional to the product of the two countries' GDP D) trade between Earth and other planets will become important. 3. We know that in antiquity, China exported silk because no one in any other country knew how to produce this product. From this information we know that A) China had a comparative advantage in silk. B) China had an absolute advantage, but not a comparative advantage in silk. C) no comparative advantage could exist because the technology was not diffused. D) China exported silk for political reasons even though it had no comparative advantage. 4. In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ in A) tastes and preferences. B) military capabilities. C) the size of their economies. ?2??7?Explanation / Answer
Ans 1)
Correct answer for above question is option D that is Bilalteral trade relation with China as a single country maynot be the concern for any economuc theory
Ans 2)
Option A is correct answer as Distance between countries is inversely propotional with the volume of trade
Hence closer the countries volume of business between these countries will be higher
Ans 3)
As only China knows that how to produe Silk which clears the fact that China has an absolute advantage
Hence option B is correct answer becasue no other country in the world knew how to produce Silk hence Comparison not possible
Ans 4)
In 2*2*2 model countries vary with their factor productions option D is caorrect response
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