Which of the following is not the subject matter of International finance?
Foreign exchange markets
The balance of payments
The basis and the gain from trade
Polices to adjust balance of payments duse equilibria
If in a two nation ( A and B ) , two commodity ( X and Y ) world , it is established that nation A has a comparative advantage in commodity X, then nation B must have:
An absolute advantage in commodity Y
An absolute disadvantage in commodity Y
A comparative disadvantage in commodity Y.
Comparative advantage in commodity Y
The term tariff as used in International trade , refers to
A government payment to encourage exports
A tax on imports
The prices of goods when they leave the producing country
A limit on the quantity of a good that can be imported in to a country
Which of the following is not an assumption generally made in the study of International economics ?
Two nations
Two commodities
Perfect International al mobility of factors
Two factors of products
What proportion of International trade is based on absolute advantage ?
All
Most
Some
Constant
Developing countries , if compared with other country , have :
A lower rate of literacy
A greats degree of equality in the income distribution
A lower infant mortality rate
A smaller percentage of the labour force in urban areas
Over time , the economics interdependence of nations has
Grown
Diminished
Remained unchanged
Cannot say
Economic theory :
Seeks to explain economic events
Seeks to predict economic events
Abstracts from the many details that surrounds an economic event
All of the above
A rough measure of the degree of economic interdependence of a nation is given by.
The size of the nations population
The percentage of to population to its GDP
The percentage of a nation's import and exports to its GDP
The commodity in which the nation has the smallest absolute disadvantage the commodity of its:
Absolute disadvantage
Absolute advantage
Comparative disadvantage
Comparative advantage
