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Economics Mcqs 4423 MCQs [All-Courses]

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Economics MCQs cover fundamental concepts of microeconomics and macroeconomics, including demand and supply, inflation, national income, and economic policies.
This section is designed to strengthen analytical skills and conceptual understanding for competitive examinations.
Highly useful for PPSC, FPSC, NTS, OTS, KPPSC, and other testing services preparation.

All Topics  4423

Comparative advantage is determined by ?
A actual differences in labor productivity between countries
B relative differences in labor productivity between countries
C Both (a) and (b)
D Neither (a) nor (b)
Correct Answer: relative differences in labor productivity between countries
In the classical model of Ricardo, the direction of trade is determined by ?
A Absolute advantage
B Comparative advantage
C Physical advantage
D Which way the wind blows
Correct Answer: Comparative advantage
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
Correct Answer: How much the autarky price differs from international terms of trade change
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)
Correct Answer: Was a system of export promotion and barriers to imports practiced by governments?
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
Correct Answer: Both countries gain from trade
The earliest statement of the principle of comparative advantage is associated with ?
A Adam Smith
B David Ricardo
C Eli Heckscher
D Berti IOhlin
Correct Answer: David Ricardo
According to the principle of comparative advantage ?
A South Korea should export steel
B South Korea should export steel and DVDs
C Japan should export steel
D Japan should export steel and DVDs
Correct Answer: South Korea should export steel
The opportunity cost of one DVD in South Korea is ?
A One-half ton of steel
B One ton of steel
C One and one-half tons of steel
D Two tons of steel
Correct Answer: Two tons of steel
G. MacDougall’s empirical results can be interpreted as ?
A evidence against the classical model
B evidence against the Heckscher-Ohlin model
C Support for the Ricardian modal
D Support for the Heckscher-Ohlin model
Correct Answer: Support for the Ricardian modal
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
Correct Answer: Ricardian theory of comparative
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