Supply-Side Policies & Sources of Comparative Advantage Mcqs

MCQ: Which of the following would be considered a supply-side policy ?

  1. An increase in the minimum wage that would cause consumer spending to increase
  2. investment tax credits for businesses to encourage investment
  3. Restrictions placed on the amount that can be imported.
  4. An increase in government spending that would lead to increased aggregate demand

Releted Questions

Supply-Side Policies & Sources of Comparative Advantage Mcqs

MCQ: The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries ?

  1. Economies of large-scale production
  2. Relative abundance of various resources
  3. Relative costs of labor
  4. Research and development expenditures

B

MCQ: Boeing aircraft company was able to over its production costs of the first – jumbo jetll in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates ?

  1. How economies of scale make possible a larger variety of products in international trade
  2. A transfer of wealth from domestic consumer to domestic producer as the result of trade
  3. How a natural monopoly is forced to behave more competitively with international trade
  4. How a natural monopoly is forced to behave less competitively with international trade

A

MCQ: The theory of overlapping demand predicts that trade in manufactured goods is unimportant for countries with very different ?

  1. Tastes and preferences
  2. Expectations of future interest rate levels
  3. Per-capita income levels
  4. Labor productivities

C

MCQ: According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ?

  1. Devote excessive amounts of resources to agricultural production
  2. Devote insufficient amounts of resources to agricultural production
  3. Export products that are land-intensive
  4. Import products that are land-intensive

C

MCQ: According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?

  1. similar endowments of natural resources
  2. similar levels of technology
  3. similar per-capita incomes
  4. similar wage levels

C

Multiple Choice Questions and Answers