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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

According to the Heckscher-Ohlin model ?
A everyone automatically gains from trade
B The gainers from trade outnumber the losers from trade
C The scarce factor necessarily gains from trade
D None of the above
Correct Answer: The gainers from trade outnumber the losers from trade
In his empirical test of comparative advantage Wassily Leontief found that ?
A U.S exports are capital intensive relative to U.S imports
B U.S imports are labor intensive relative to U.S exports
C U.S exports are neither labor nor capital intensive
D None of the above
Correct Answer: None of the above
The Heckshcer-Ohl assumes that are indentical between countries?
A tastes and preferences
B technology levels
C factor indowments
D Both A and B
Correct Answer: Both A and B
One of the predictions of the Heckscher-Ohlin model is that ?
A countries with different factor endowments but similar technologies and preferences will have a strong basis for trade with each other
B countries with tend to specialize but not completely in their comparative advantage good
C reciprocal demand leads to an equilibrium terms of trade by inducing change in both demand and supply
D All of the above
Correct Answer: All of the above
If tastes are identical between countries, then comparative advantage is determined by ?
A supply condition only
B demand conditions only
C supply and demand conditions
D can’t tell without more information
Correct Answer: supply condition only
Industrial policies intended to foster comparative advantage for domestic industries could result in the implementation of ?
A research and development subsidies
B loan guarantees
C low interest rate loans
D All of the above
Correct Answer: All of the above
The product cycle theory of trade is essentially a ?
A static, short run trade theory
B dynamic long run trade theory
C zero-sum theory of trade
D negative-sum theory of trade
Correct Answer: dynamic long run trade theory
The Heckscher-Ohl in model rules out the classical model’s basis for trade by assuming that _________ is (are) identical between countries?
A factor endowments
B factor intensities
C technology
D opportunity costs
Correct Answer: technology
Declining costs per unit of output results from international trade especially if ?
A International trade affords producers monopoly power
B National governments levy imports tariffs and quotas
C Producing goods entails increasing costs
D Economies of scale exist for producers
Correct Answer: Economies of scale exist for producers
Dynamic comparative advantage theory ?
A helps explain why some nations use industrial policy to support potentially competitive new firms
B cannot explain strategic competition between firms such as Boeing and Airbus
C Is another name for Ricardo’s comparative advantage theory?
D None of the above
Correct Answer: helps explain why some nations use industrial policy to support potentially competitive new firms
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