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T.Y.B. Com: Business Economics VI

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

Ricardian theory assumes perfect mobility of Labour

a)

Within the country

b)

Between the countries

c)

Both within and between the countries

d)

Between states

2.

Ricardian comparative cost theory can be extended or applied to

a)

More than two commodities

b)

Only two countries

c)

Only to developed countries

d)

Intra-regional

3.

An offer curve ..........

a)

Differs from an usual demand curve only

b)

Differs from an usual supply curve only

c)

Differs from both usual demand and supply curves

d)

Differs in other countries

4.

Terms of trade are expressed as a ..............

a)

Ratio of foreign exchange receipts and payments

b)

Ratio of price index of exports and imports

c)

Ratio of foreign direct investment and portfolio investment

d)

Ratio of changes indirectly

5.

H. O. Theory can explain

a)

Inter-regional trade

b)

International Trade

c)

Both

d)

Intra

6.

Commodity X is capital intensive if in its production

a)

Capital/Labour (K/L) ratio is greater than Y

b)

Physical units of K and L are greater than Y

c)

X requires better technology than Y

d)

Y requires better technology than X

7.

Comparative cost theory is a static theory because according to it

a)

There is no qualitative and quantitative change in inputs

b)

Labour is homogeneous within the country

c)

There is no transport cost

d)

Labour is heterogeneous

8.

Ricardian theory measures comparative cost in terms of

a)

Money

b)

Labour days

c)

Cost of all the inputs

d)

Input Factors

9.

Ricardian theory assumes that

a)

Labour is homogeneous and of same efficiency in all the countries

b)

Labour is homogeneous within the country

c)

Labour differs in efficiency within the country

d)

Labour is heterogeneous

10.

Which one of the following is an argument for free trade?

a)

Protects domestic industries

b)

Promotes self sufficiency

c)

Helps diversification of industries

d)

Promotes efficient allocation of world resources