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.Management Sciences
Category: Foundations Of Modern Trade Theory
In autarky the relative price of wine, in terms of beer, in Country B is ?
A. 1W = 3B
B. 1W = 4 1/2B
C. 1W = 5B
D. 1W = 6B
The opportunity cost of one DVD in Japan is ?
A. One ton of steel
B. Two tons of steel
C. Three tons of steel
D. Four tons of steel
The gains from international trade are closely related to ?
A. The labor theory of value
B. How much the autarky price differs from international terms of trade change
C. The fact that a country must lose from trade
D. All of the above
Which countries terms of trade improved between 1990 and 2000 ?
A. Mexico and Denmark
B. Sweden and Denmark
C. Sweden and Spain
D. Mexico and Sweden
Country B has the comparative advantage in ?
A. Wine
B. Beer
C. Both wine and beer
D. Neither wine nor beer
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
In autarky, the relative price of X, in terms of Y in A would be ?
A. 1/2 Y
B. 3/4 Y
C. 1 Y
D. 4/3 Y
According to the Classical theory of international trade ?
A. Only countries with low wages will export
B. Only countries with high wages will import
C. Countries with high wages will have higher prices
D. All of the above are false
According to the Principle of absolute advantage Japan should ?
A. Export steel
B. Export DVDs
C. Exports steel and DVDs
D. There is no basis for gainful specialization and trade
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