Description : . In Heckscher Ohlin theory factors of production are---in number. (a) one (b) two © three (d) four
Last Answer : (b) two
Description : Factor propotion theory is also known as (a) Comparative advantage theory. (b) Laissez faire theory. © Heckscher Ohlin theory. (d) Product cycle theory.
Last Answer : © Heckscher Ohlin theory.
Description : According to Heckscher and Ohlin there are two bases of international trade (a) coparative advantage and absolute advantage (b) gains from trade and cost of trade. © difference in factor endowments and differences in factor intensities. (d) none of them.
Last Answer : © difference in factor endowments and differences in factor intensities.
Description : According to Heckscher and Ohlin theory, what is considered in international Business? A. Difference in factor endowments B. Difference in markets C. Difference in technology D. Difference in ideology
Last Answer : Difference in factor endowments
Description : The Theory of Absolute Cost Advantage is given by A. David Ricardo B. Adam Smith C. F W Taylor D. Ohlin and Heckscher
Last Answer : B. Adam Smith
Description : ” If a country enjoys an absolute advantage in the production of all commodities then also trade is possible”. Who said this? (a) Adam Smith (b) David Ricardo © J.S Mill (d) None of them.
Last Answer : (b) David Ricardo
Description : Price elasticity of demand shows the relationship between demand for a commodity and (a) price of other commodities (b) price of that commodity © tastes and preferences of the consumer (d) income of the consumer
Last Answer : (b) price of that commodity
Description : In a Laissez-faire economy (1) the customers take all the decisions regarding production of all the commodities (2) the Government does not interfere in the free functioning of demand and ... of various commodities produced (4) the Government controls the allocation of all the factors of production
Last Answer : the Government does not interfere in the free functioning of demand and supply forces in the market
Description : The main advantage of specialization results from (a) The economies of large scale production (b) The specializing country behaves like a monopoly © Smaller production runs resulting in lower unit costs. (d) High wages paid to foreign workers.
Last Answer : (a) The economies of large scale production
Description : The transportation method, when applied to location analysis a. minimizes total fixed costs b. minimizes total production and transportation costs c. maximizes maximizes revenues revenues d. minimizes minimizes the movement movement of goods
Last Answer : b. minimizes total production and transportation costs
Description : Comparative advantage occurs when (a) A country can produce more goods than anyone else (b) A country has a lower opportunity cost in the production of a good than any other country © A country has more product lines than other countries (d) The exchange rate appreciates.
Last Answer : (b) A country has a lower opportunity cost in the production of a good than any other country
Description : Factors of production in Input Output model is---- (a) one (b) two © three (d) four
Last Answer : (a) one
Description : In the long run, which of the following factors of production is fixed? (a) capital (b) building © labour (d) none of the above
Last Answer : (d) none of the above
Description : An indifference curve measures the same level of - (1) Output from two factors (2) Satisfaction from two commodities (3) Satisfaction from Income and Capital (4) Satisfaction from expenditure and savings
Last Answer : (2) Satisfaction from two commodities Explanation: An indifference curve is a locus of combinations of goods which derive the same level of satisfaction. so that the consumer is indifferent ... of various points showing different combinations of two goods providing equal utility to the consumer
Description : An indifference curve measures the same level of (1) Output from two factors (2) Satisfaction from two commodities (3) Satisfaction from Income and Capital (4) Satisfaction from expenditure and savings
Last Answer : Satisfaction from two commodities
Description : Trade between two countries can be beneficial if cost ratio between two countries are ( a) Same (b) Different © Undetermined (d) Decreasing
Last Answer : (b) Different
Description : Massive starvation takes place due to: (a) rise in the price of essential commodities (b) decline in production of foodgrains (c) drought (d) both (a) and (b)
Last Answer : (c) drought
Description : he non-expenditure costs which arise when the producing firm itself owns and supplies certain factors of production are - (1) Explicit costs (2) Original costs (3) Implicit costs (4) Replacement costs
Last Answer : (3) Implicit costs Explanation: In economics, an implicit is the opportunity cost equal to what a firm must give up in order to use factors which it neither purchases nor hires. It is ... instead of renting, selling or lending it. These are costs a business incurs without actually spending money.
Description : The non-expenditure costs which arise when the producing firm itself owns and supplies certain factors of production are (1) Explicit costs (2) Original costs (3) Implicit costs (4) Replacement costs
Last Answer : Implicit costs
Description : The economist who believed that unemployment is impossible and that market mechanism has a built in regulatory system to meet any ups and downs - (1) J.M.Keynes (2) Ohlin (3) J. B. Say (4) Galbraith
Last Answer : (3) J. B. Say Explanation: The classical economists' belief in full employment as a normal condition of a free market economy is based on Say's Law of Markets. It was on the ... overproduction and hence general unemployment were impossible. The law simply states "supply creates its own demand."
Description : "Interest is a reward for parting with liquidity" is according to - (1) Keynes (2) Marshall (3) Haberler (4) Ohlin
Last Answer : (1) Keynes Explanation: In macroeconomic theory, liquidity preference refers to the demand for money, considered as liquidity. The concept was first developed by John Maynard Keynes in his book The ... a reward for saving, interest in the Keynesian analysis is a reward for parting with liquidity.
Description : The economist who believed that unemployment is impossible and that market mechanism has a built in regulatory system to meet any ups and downs (1) J.M.Keynes (2) Ohlin (3) J.B.Say (4) Galbraith
Last Answer : J.B.Say
Description : Modern theory of international trade is based on the view of A. Adam Smith B. Ricardo C. Hecksher and Ohlin D. Hicks
Last Answer : Hecksher and Ohlin
Description : Theory of international trade was given by:- A. Adam Smith B. Ricardo C. Hicks D. Ohlin
Last Answer : Ricardo
Description : The theory of Comparative cost advantage is given by A. David Ricardo B. Adam Smith C. F W Taussig D. Ohlin and Hecksher
Last Answer : A. David Ricardo
Description : The Theory of Relative Factor Endowments is given by A. David Ricardo B. Adam Smith C. F W Taussig D. Ohlin and Hecksher
Last Answer : D. Ohlin and Hecksher
Description : Classical theories believed in ---- theory of value. (a) land (b) labour © capital (d) organization.
Last Answer : (b) labour
Description : The theory of Comparative Advantage was propounded by (a) Adam Smith (b) David Ricardo © J.S. Mill (d) None of them.
Description : The theory of Absolute Advantage was propounded by (a) Adam Smith (b) David Ricardo © J. S Mill (d) None of them.
Last Answer : (a) Adam Smith
Description : Keynesian theory of investment is known as ----- (a) Marginal Efficiency of Capital Theory. (b) Marginal Efficiency of Investment Theory. © Optimum Stock of Capital Theory. (d) Actual Stock of Capital Theory.
Last Answer : (b) Marginal Efficiency of Investment Theory.
Description : A likely consequence of rationalization is: A. Lower number of employees B. Lower revenues C. Higher costs D. Price decrease
Last Answer : Higher costs
Description : A likely consequence of merger and acquisition is: A. Lower revenues B. Price increase C. Higher costs D. Price decrease
Last Answer : Price increase
Description : Competition-oriented pricing is: A)used when costs and revenues are considered secondary to competitors' prices. B)not useful as a method of increasing or maintaining market share. C)of little use if the competing products are homogenous. D)most often used when competing products are heterogeneous.
Last Answer : A)used when costs and revenues are considered secondary to competitors' prices.
Description : Many sophisticated techniques or tolls are useful in decision-making. Which of the following is a tool that helps managers figure out how much to produce and points out the relationship between revenues, ... Marginal analysis ; (b) Breakeven analysis ; (c) Ratio analysis ; (d) Financial analysis
Last Answer : (b) Breakeven analysis ;
Description : Rich countries have deficit in their balance of payments (a) Sometimes. (b) Always. © Never. (d) Alternate years.
Last Answer : (a) Sometimes.
Description : Terms of trade in developing countries are generally unfavourable because (a) They export manufacturing products. (b) They export primary products. © They export few goods. (d) Both (a) and (c).
Last Answer : (b) They export primary products.
Description : If the production possibility curve is linear, then production is said to be subject of (a) constant opportunity cost (b) decreasing opportunity cost © Increasing opportunity cost (d) first increasing then decreasing opportunity cost.
Last Answer : (a) constant opportunity cost
Description : The law of diminishing marginal utility is most useful for explaining the (a) Law of supply (b) Law of demand © Shape of production possibility curve (d) curvature of total cost curve
Last Answer : (b) Law of demand
Description : In autarky equilibrium (a) production=consumption. (b) export=import © there is no trade (d) all of the above.
Last Answer : (a) production=consumption.
Description : Which of the following is not a benefit of international trade? (a) Lower domestic prices (b) Development of more efficient methods of production © A wider selection of products for domestic consumers (d) High wage levels for all domestic workers.
Last Answer : The theory of comparative cost advantage is given by
Description : .Free trade is based on the principle of (a) Comparative advantage (b) Comparative scale © Economies of advantage (d) Production possibility advantage
Last Answer : (a) Comparative advantage
Description : Gains from trade can be divided into two parts (a) gains from exports and gains from imports. (b) gains from specialization and gains from exchange. © gains from consumption and gains from production. (d) gains from profit and gains from loss.
Last Answer : (b) gains from specialization and gains from exchange.
Description : According to Absolute and Comparative Advantage theories----- is the only factor of production. (a) land (b) labour © capital (d) organization.
Description : Production Function relates to: (1) costs to outputs (2) costs to inputs (3) inputs to outputs (4) wage level to profits
Last Answer : (3) inputs to outputs Explanation: In microeconomics and macroeconomics, a production function is a function that specifies the out-put of a firm, an industry, or an entire economy for all ... in the use of factor inputs in production and the resulting distribution of income to those factors.
Description : The situation in which total Revenues equals total cost, is known as : (1) Monopolistic competition (2) Equilibrium level of output. (3) Break even point (4) Perfect competition
Last Answer : (3) Break even point Explanation: In economics and cost accounting, the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even."
Description : Leontief’s input output model is based on the concept of----- (a) Consumption function (b) Partial Equilibrium © General Equilibrium. (d) All of the above.
Last Answer : © General Equilibrium.
Description : For which function money is accepted as a unit of account? (a) Measure of value. (b) Store of value. © Medium of exchange. (d) Standard of deferred payment.
Last Answer : (a) Measure of value.
Description : Which of the following is not the function of commercial bank? (a) Acceptance of deposits. (b) Advancing loans. © Issue of paper notes. (d) Credit control.
Last Answer : © Issue of paper notes.