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.Management Sciences
Category: Foundations Of Modern Trade Theory
Under free trade, Canada would not realize any gains from trade with Sweden if Canada ?
A. Trades at Canada’s marginal rate of transformation
B. Trade at Sweden’s marginal rate of transformation
C. Specializes completely in the production of its export good
D. Specializes partially in the production of its exports goods
Country B has an absolute advantage in ?
A. Product X
B. Product Y
C. Neither X nor Y
D. Both X and Y
If the relative price (MRT) of S were to increase, then the price line would ?
A. shift out in a parallel fashion
B. shift in a parallel fashion
C. Become steeper
D. Become flatter
G. MacDougal compared export ratios and labor productivity ratios for the United States and the United Kingdom in order to test the:
A. Ricardian theory of comparative
B. Heckscher Ohl in theory of comparative advantage
C. Linder theory of overlapping demand all of the above
D. None of these
If the international terms of trade settle at a level that is between each country’s opportunity cost ?
A. There is no basis for gainful trade for either country
B. Both countries gain from trade
C. Only one country gains from trade
D. One country gain and the other country loses from trade
If the relative Price (MRT) of T were to increase, then the price line would ?
A. Shift out in a parallel fashion
B. shift in a parallel fashion
C. become steeper
D. Become flatter
In autarky, the relative price of wine, in terms of beer, in country A is ?
A. 1W = 1B
B. 1W = 2B
C. 1W = 3B
D. 1W = 1/3B
John Stuart Mill was the founder of the ?
A. Theory of reciprocal demand
B. Theory of absolute advantage
C. Theory of comarative advantage
D. Theory of mercantilism
Mercantilism ?
A. Is the philosophy of free international trade?
B. Was a system of export promotion and barriers to imports practiced by governments?
C. Was praised by Adam Smith in the Wealth of Nations
D. Both (a) and (c)
If the countries were to trade along the lines of absolute advantage ?
A. A would export X to B
B. B would import Y from A
C. Neither country would want to trade
D. None of the above
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