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.

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.
by

1 Answer

Answer :

(b) gains from specialization and gains from exchange.
by

Related questions

The difference between visible exports and visible imports is defined as - (1) Balance of trade (2) Balance of payment (3) Balanced terms of trade (4) Gains from trade

Description : The difference between visible exports and visible imports is defined as - (1) Balance of trade (2) Balance of payment (3) Balanced terms of trade (4) Gains from trade

Last Answer : (1) Balance of trade Explanation: The balance of trade (or net exports, sometimes symbolized as NX) is the difference between the monetary value of exports and imports of output in an economy over a certain period. It is the relationship between a nation's imports and exports.

The difference between visible exports and visible imports is defined as (1) Balance of trade (2) Balance of payment (3) Balanced terms of trade (4) Gains from trade

Description : The difference between visible exports and visible imports is defined as (1) Balance of trade (2) Balance of payment (3) Balanced terms of trade (4) Gains from trade

Last Answer :  Balance of trade

. Terms of trade is (a) the ratio of imports / exports (b) the ratio of exports/imports © the ratio of goods/services (d) the ratio of land/labour

Description : . Terms of trade is (a) the ratio of imports / exports (b) the ratio of exports/imports © the ratio of goods/services (d) the ratio of land/labour

Last Answer : (b) the ratio of exports/imports

Trade Gap means A. Gap between total GDP and total consumption B. Gap between total imports and total exports C. Gap between available liquidity and expected demand in next five months D. Gap between budgeted revenue collection and actual collection of the same E. None of the above

Description : Trade Gap means A. Gap between total GDP and total consumption B. Gap between total imports and total exports C. Gap between available liquidity and expected demand in next five months D. Gap between budgeted revenue collection and actual collection of the same E. None of the above

Last Answer : B. Gap between total imports and total exports Explanation: The amount by which the value of a country‘s visible imports exceeds that of visible exports; an unfavourable balance of trade.

When tariff is imposed on imports which of the following will increase? (a) Domestic output. (b) Domestic demand. © Domestic price. (d) Domestic consumption.

Description : When tariff is imposed on imports which of the following will increase? (a) Domestic output. (b) Domestic demand. © Domestic price. (d) Domestic consumption.

Last Answer : © Domestic price.

An increase in consumption at any given level of income will lead to (a) Higher aggregate demand. (b) An increase in exports. © A fall in taxation revenue. (d) A decrease in import spending.

Description : An increase in consumption at any given level of income will lead to (a) Higher aggregate demand. (b) An increase in exports. © A fall in taxation revenue. (d) A decrease in import spending.

Last Answer : (a) Higher aggregate demand.

The difference in the value of visible exports and visible imports is called : (1) Balance Sheet of items (2) Balance of Payments (3) Balance of Trade (4) Balance of Account

Description : The difference in the value of visible exports and visible imports is called : (1) Balance Sheet of items (2) Balance of Payments (3) Balance of Trade (4) Balance of Account

Last Answer : (3) Balance of Trade Explanation: Balance of Trade refers to the difference between the value of a country's visible imports and visible exports. Also known as the visible balance, it forms part of ... totals more than the value of visible exports, it is known as an adverse balance of trade.

A country's balance of trade is unfavorable when — (1) exports exceed imports (2) imports exceed exports (3) terms of trade become unfavorable (4) None of these

Description : A country's balance of trade is unfavorable when — (1) exports exceed imports (2) imports exceed exports (3) terms of trade become unfavorable (4) None of these

Last Answer : (2) imports exceed exports Explanation: The balance of trade, or net exports is the difference between the monetary value of exports and imports of output in an economy over a certain period. It is the ... is imported: a negative balance is referred to as a trade deficit or, informally, a trade gap.

A favorable Balance of Trade of a country implies that - (1) Imports are greater than Exports (2) Exports are greater than Imports (3) Both Imports and Exports are equal (4) Rising Imports and Falling Exports

Description : A favorable Balance of Trade of a country implies that - (1) Imports are greater than Exports (2) Exports are greater than Imports (3) Both Imports and Exports are equal (4) Rising Imports and Falling Exports

Last Answer : (2) Exports are greater than Imports Explanation: Favorable balance of trade is an imbalance in a nation's balance of trade in which the payments for merchandise exports received by the country exceed ... and income. A balance of trade surplus is often the source of a balance of payments surplus.

A favourable Balance of Trade of a country implies that (1) Imports are greater than Exports (2) Exports are greater than Imports (3) Both Imports and Exports are equal (4) Rising Imports and Falling Exports

Description : A favourable Balance of Trade of a country implies that (1) Imports are greater than Exports (2) Exports are greater than Imports (3) Both Imports and Exports are equal (4) Rising Imports and Falling Exports

Last Answer :  Exports are greater than Imports

A country’s balance of trade is unfavourable when — (1) exports exceed imports (2) imports exceed exports (3) terms of trade become unfavourable (4) None of these

Description : A country’s balance of trade is unfavourable when — (1) exports exceed imports (2) imports exceed exports (3) terms of trade become unfavourable (4) None of these

Last Answer : imports exceed exports

The difference in the value of visible exports and visible imports is called : (1) Balance Sheet of items (2) Balance of Payments (3) Balance of Trade (4) Balance of Account

Description : The difference in the value of visible exports and visible imports is called : (1) Balance Sheet of items (2) Balance of Payments (3) Balance of Trade (4) Balance of Account

Last Answer : Balance of Trade

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.

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

In autarky equilibrium (a) production=consumption. (b) export=import © there is no trade (d) all of the above.

Description : In autarky equilibrium (a) production=consumption. (b) export=import © there is no trade (d) all of the above.

Last Answer : (a) production=consumption.

“Crowding out” means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a government budget deficit raises interest rates and causes investment spending to fall d. a government budget deficit raises American exports and lowers American imports

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Last Answer : c. a government budget deficit raises interest rates and causes investment spending to fall

10. “Crowding out” means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a government budget deficit raises interest rates and causes investment spending to fall d. a government budget deficit raises American exports and lowers American imports

Description : 10. Crowding out means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a ... investment spending to fall d. a government budget deficit raises American exports and lowers American imports

Last Answer : c. a government budget deficit raises interest rates and causes investment spending to fall

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.

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.

The terms of trade measures (a) the income of a country compared to another (b) The GDP of a country compared to another © The quantity of exports of a country compared to another (d) Export prices compared to import prices.

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Last Answer : (d) Export prices compared to import prices.

GDP at market prices is the sum of Consumption, Investment, Government Spending and Net Exports. „Net‟ exports is (a) Gross exports minus depreciation ; (b) Exports minus imports ; (c) Gross exports earnings minus capital inflow ; (d) Export minus imports of merchandize

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Under a floating exchange-rate system, if the U.S. dollar depreciates against the Swiss franc: A. American exports to Switzerland will be cheaper in francs B. American exports to Switzerland will be more expensive in francs C. American imports from Switzerland will be cheaper in dollars D. None of the above

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Under a floating exchange-rate system, if American exports decrease and American imports rise, the value of the dollar will: A. Appreciate B. Depreciate C. Be officially revalued D. Be officially devalued

Description : Under a floating exchange-rate system, if American exports decrease and American imports rise, the value of the dollar will: A. Appreciate B. Depreciate C. Be officially revalued D. Be officially devalued

Last Answer : B. Depreciate

Under a floating exchange-rate system, if American exports increase and American imports fall, the value of the dollar will: A. Appreciate B. Depreciate C. Be officially revalued D. Be officially devalued

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Last Answer : A. Appreciate

Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners: A. U.S. exports tend to rise and imports tend to fall B. U.S. imports tend to rise and exports tend to fall C. U.S. foreign exchange reserves tend to rise D. U.S. foreign exchange reserves remain constant

Description : Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners: A. U.S. exports tend to rise and imports tend to fall ... C. U.S. foreign exchange reserves tend to rise D. U.S. foreign exchange reserves remain constant

Last Answer : B. U.S. imports tend to rise and exports tend to fall

The _____________ is the difference in value between a nation's exports and its imports 1. balance of payments 2. export / import ratio 3. gross domestic product 4. net trade value 5. balance of trade

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Last Answer : balance of trade

Terms of trade of a country show A. Ratio of goods exported and imported B. Ratio of import duties C. Ratio of prices of exports and imports D. (a) and (c) as given above

Description : Terms of trade of a country show A. Ratio of goods exported and imported B. Ratio of import duties C. Ratio of prices of exports and imports D. (a) and (c) as given above

Last Answer : Ratio of prices of exports and imports

Quantitative restrictions refer to limit set by countries to curb A. Measures that affect trade in goods. B. Measures that lead to restrictions in quantities. C. Discouraging measures that limit a company’s imports. D. Discouraging measures that limit a company’s exports.

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Last Answer : Discouraging measures that limit a company’s exports.

e __________ is the difference in value between a nation's exports and its imports. A)balance of payments B)export/import ratio C)gross domestic product D)net trade value E)balance of trade

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Last Answer : A)balance of payments

Production function explains the relationship between - (1) initial inputs and ultimate output (2) inputs and ultimate consumption (3) output and consumption (4) output and exports

Description : Production function explains the relationship between - (1) initial inputs and ultimate output (2) inputs and ultimate consumption (3) output and consumption (4) output and exports

Last Answer : (1) initial inputs and ultimate output Explanation: Production function explains the relationship between factor input and output under given technology. It explains as to for increasing the ... . Production function explains the physical relationship between input and output under given technology.

Production function explains the relationship between (1) initial inputs and ultimate output (2) inputs and ultimate consumption (3) output and consumption (4) output and exports

Description : Production function explains the relationship between (1) initial inputs and ultimate output (2) inputs and ultimate consumption (3) output and consumption (4) output and exports

Last Answer : initial inputs and ultimate output

The major aim of devaluation is to - (1) encourage imports (2) encourage exports (3) encourage both exports and imports (4) discourage both exports and imports

Description : The major aim of devaluation is to - (1) encourage imports (2) encourage exports (3) encourage both exports and imports (4) discourage both exports and imports

Last Answer : (2) encourage exports Explanation: Devaluation in modern monetary policy is a reduction in the value of a currency with respect to those goods, services or other monetary units with which that currency can ... , discouraging imports. As a result, this may help to reduce a country's trade deficit.

"Closed Economy" means : (1) no provision for public sector (2) no provision for private sector (3) economy policy not well defined (4) a country having no imports and exports

Description : "Closed Economy" means : (1) no provision for public sector (2) no provision for private sector (3) economy policy not well defined (4) a country having no imports and exports

Last Answer : (4) a country having no imports and exports Explanation: Closed economy is an economy in which no activity is conducted with outside economies. A closed economy is self-sufficient, meaning that no ... The goal is to provide consumers with everything that they need from within the economy's borders.

If a country devalues its currency, its - (1) (1) Exports become cheaper and imports become costlier (2) (2) Exports become costlier and imports become cheaper. (3) Exports value is equivalent to imports value (4) No effect on exports and imports

Description : If a country devalues its currency, its - (1) (1) Exports become cheaper and imports become costlier (2) (2) Exports become costlier and imports become cheaper. (3) Exports value is equivalent to imports value (4) No effect on exports and imports

Last Answer : (1) Exports become cheaper and imports become costlier Explanation: Devaluation means official lowering of the value of a country's currency within a fixed exchange rate system, by which the ... turn, means that imports are more expensive, making domestic consumers less likely to purchase them.

'Quota' is - (1) tax levied on imports (2) imports of capital goods (3) limit on the quantity of imports (4) limit on the quantity of exports

Description : 'Quota' is - (1) tax levied on imports (2) imports of capital goods (3) limit on the quantity of imports (4) limit on the quantity of exports

Last Answer : (3) limit on the quantity of imports Explanation: An import quota is a limit on the quantity of a good that can be produced abroad and sold domestically. It is a type of ... production of a good, service, or activity, thus "protect" domestic production by restricting foreign competition.

The records of exports and imports in goods and services and transfer payments is known as a) Current account b) Budget surplus c) Economic leakage d) degree of openness

Description : The records of exports and imports in goods and services and transfer payments is known as a) Current account b) Budget surplus c) Economic leakage d) degree of openness

Last Answer : a) Current account

“Closed Economy” means: (1) no provision for public sector (2) no provision for private sector (3) economy policy not well defined (4) a country having no imports and exports

Description : “Closed Economy” means: (1) no provision for public sector (2) no provision for private sector (3) economy policy not well defined (4) a country having no imports and exports

Last Answer :  a country having no imports and exports

‘Quota’ is (1) tax levied on imports (2) imports of capital goods (3) limit on the quantity of imports (4) limit on the quantity of exports

Description : ‘Quota’ is (1) tax levied on imports (2) imports of capital goods (3) limit on the quantity of imports (4) limit on the quantity of exports

Last Answer : limit on the quantity of imports

If a country devalues its currency, its (1) Exports become cheaper and imports become costlier (2) Exports become costlier and imports become cheaper. (3) Exports value is equivalent to imports value (4) No effect on exports and imports

Description : If a country devalues its currency, its (1) Exports become cheaper and imports become costlier (2) Exports become costlier and imports become cheaper. (3) Exports value is equivalent to imports value (4) No effect on exports and imports

Last Answer : Exports become cheaper and imports become costlier

The major aim of devaluation is to : (1) encourage imports (2) encourage exports (3) encourage both exports and imports (4) discourage both exports and imports

Description : The major aim of devaluation is to : (1) encourage imports (2) encourage exports (3) encourage both exports and imports (4) discourage both exports and imports

Last Answer : encourage exports

Measures to reduce imports will (a) Boost injections into an economy. (b) Reduce injections from an economy. © Boost withdrawals into aneconomy. (d) Reduce withdrawals from an economy.

Description : Measures to reduce imports will (a) Boost injections into an economy. (b) Reduce injections from an economy. © Boost withdrawals into aneconomy. (d) Reduce withdrawals from an economy.

Last Answer : (d) Reduce withdrawals from an economy.

Marginal Propensity to Consume is (a) Increase in consumption due to one unit increase in income. (b) Total consumption divided by total income. © Both (a) and (b). (d) Neither (a) nor (b).

Description : Marginal Propensity to Consume is (a) Increase in consumption due to one unit increase in income. (b) Total consumption divided by total income. © Both (a) and (b). (d) Neither (a) nor (b).

Last Answer : (a) Increase in consumption due to one unit increase in income.

Specific tariffs are collected as (a) Fixed amount of money per unit traded (b) A percentage of the price of the product © A percentage on the quantity of imports (d) All of the above.

Description : Specific tariffs are collected as (a) Fixed amount of money per unit traded (b) A percentage of the price of the product © A percentage on the quantity of imports (d) All of the above.

Last Answer : (a) Fixed amount of money per unit traded

A government’s restriction on the quantity of imports of a country is known as (a) Export quota (b) Import quota © Import rent. (d) Embargo.

Description : A government’s restriction on the quantity of imports of a country is known as (a) Export quota (b) Import quota © Import rent. (d) Embargo.

Last Answer : (b) Import quota

.A tariff that is levied as a fixed charge per unit of imports is known as a (a) Specific tariff (b) Ad- valorem tariff © Import tariff (d) Export tariff.

Description : .A tariff that is levied as a fixed charge per unit of imports is known as a (a) Specific tariff (b) Ad- valorem tariff © Import tariff (d) Export tariff.

Last Answer : a) Specific tariff

Which of the following is not a component of GDP? (a) Government spending (b) Investment © Interest (d) Net exports

Description : Which of the following is not a component of GDP? (a) Government spending (b) Investment © Interest (d) Net exports

Last Answer : © Interest

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.

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

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.

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

.Free trade is based on the principle of (a) Comparative advantage (b) Comparative scale © Economies of advantage (d) Production possibility advantage

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

” 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.

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

Which of the following is a strength of the divisional structure? (a) It focuses on results ; (b) It gains advantages due to work specialization (c) Employees have more than one boss ; (d) It is based solely on teams

Description : Which of the following is a strength of the divisional structure? (a) It focuses on results ; (b) It gains advantages due to work specialization (c) Employees have more than one boss ; (d) It is based solely on teams

Last Answer : (a) It focuses on results ; 

Full convertibility of a rupeee means - (1) purchase of foreign exchange for rupees freely (2) payment for imports in terms of ruppes (3) repayment of loans in terms of rupees (4) determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply

Description : Full convertibility of a rupeee means - (1) purchase of foreign exchange for rupees freely (2) payment for imports in terms of ruppes (3) repayment of loans in terms of rupees (4) determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply

Last Answer : (4) determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply Explanation: The full convertibility of the Indian currency means ... governmental control. Presently, the issue of capital account convertibility is in the discussion stage.