International agricultural trade questions.
Find International agricultural trade university examination questions in acaproso.com
| # | Question |
|---|---|
| 1 | For beneficial trade a country will export goods in which it has a comparative advantage. True OR False |
| 2 | Depreciation of domestic currency leads to low prices for exported commodities and thus expansion in exporting sector. True OR False |
| 3 | Depreciation of domestic currency leads to lower prices for imported goods. True OR False |
| 4 | Some countries fixed/control their exchange rates and cost of their factors of production, e.g having a minimum wage . Therefore it is not possible to trade according to comparative advantage. True OR False |
| 5 | Nations will have a comparative advantage in those goods and services that intensively use the nation`s abundant factor of production because the opportunity cost of abundant factor is high. True OR False |
| 6 | When countries specialized according to their absolute advantage total world output will decrease. True OR False |
| 7 | According to the Ricardian model, if we trade according to absolute advantage all countries in the world are going to gain from trade. True OR False |
| 8 | Lower taxes improve our competitiveness in the world market. True OR False |
| 9 | High wages , high prices, and low competitiveness are directly related. True OR False |
| 10 | Opportunity cost of producing commodities in a country affects its comperative advantage. True OR False |
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