Mcq S Which Of The Following Statements Refers To As Immiserizing Growth 81089

PART A: MULTIPLE CHOICE QUESTION (40%)1.Which of the following statements refers to as Immiserizing Growth?a.Labor abundant country should produce and export labor intensive products to promote growthb.A country which enjoys economic growth but reduced welfarec.A country which enjoys both economic growth and welfare increased.An increase in labor resource in a country will lead to a reduction in production of the labor-intensive product.2.Which of the following ideas is the concern of Leontief Paradox? a.The United States has enjoyed economic growth during 1947 -1950 but faced reduction in its economic welfare b.If all individuals increase their savings, the total savings in the economy reducesc.The United States was considered as capital-abundant country. However, it exported labor-intensive products rather than capital intensive productsd.None of the above 3.Which of the following theories could be used to explain the statement: “The United States is considered as a capital-abundant country. So it produces and exports cars of famous brand names such as Ford, GMC, Chevrolet, etc. However, it still imports cars from Japan”. a.Stolper –Samuelson Theoremb.Immiserrizing Growthc.Heckscher- Ohlin theoryd.Intra-Industry Trade theory4.A country could become richer and more powerful if it increases exports and restricts imports. Gold and silver are standards of economic development. This refers to as a.Ricardian model b.Rybczinski Theoremc.Hechscher-Ohlin Theoryd.None of the above 5.An increase in the land resource will lead to an increase in the production of Food which is the land-intensive product and decrease in the production of cloth – a labor-intensive product. The theory used to express this statement is: a.Product-Life Cycle theoryb.Rybczinki theoremc.Stolper-Samuelson theoremd.Intra-industry trade theory6.Which of the following patterns can NOT be explained by the Hecscher-Ohlin theory? a.Trade based on difference in productivityb.Trade based on price differencesc.Trade based on product differentiationd.Trade based on factor abundance7.Which of the following effects can NOT be explained by the Ricardian model? a.International trade increases labor income among countriesb.A country can benefit from international trade even if it has no absolute advantage on producing any goodsc.Pattern of international trade is based on difference in productivity among countries. d.All of the above8.When the relative price of food increases and food is a land-intensive product, a.The real labor wage in the Cloth (labor-intensive product) industry increases toob.The real labor wage in the Food industry increases tooc.The real labor wage in the Cloth industry reducesd.b and c are correct9.Beggar-Thy-neighbor way of development is characteristics of a.Mercantilismb.Comparative Advantage theoryc.Heckscher-Ohlin theoryd.Rybczinski theory10.Given the PPF is a curve (not a straight line), when a country specializes in production of a certain product C , the relative price (Pc/Pf) of that product will a.Increaseb.Reducec.Stays unchangedd.Fluctuate11.Which of the following statements is NOT correct? a.Real wage (W/P) = Marginal Product of Labor (MPL)b.A country is said to have comparative advantage on a certain product if its opportunity cost is lower than that in the other country (two-country case). c.In the Two-Factor Heckscher-Ohlin Theory, the PPF is assumed to be lineard.None of the above is correct 12.What theory expresses the positive relation between the relative price of a Cloth and the wage-rental ratio (w/r) in the Cloth industry?a.Rybczinski theoremb.Immiserizing growthc.Stolper-Samuelson theoremd.Economies of Scale13.In a labor -hour, Home country can produce either 10 units of Wine or 4 units of Cloth. Foreign country can produce either 6 units of Cloth or 8 units of Wine. Home country is said to have:a.Absolute advantage in producing Wineb.Absolute advantage in producing Clothc.Comparative advantage in producing Clothd.No advantage in producing both goods14.Relative price of Cloth to Food (Pc/Pf ) is higher in Home country than that in Foreign country. a.Home country will specialize in producing and exporting Clothb.Home country will specialize in producing and exporting Foodc.Foreign country will specialize in producing and exporting Foodd.There is benefits from international trade