In the theory of international trade, the Heckscher-Ohlin theorem states that a country will export goods that: MCQ with Answer and Explanation

In the theory of international trade, the Heckscher-Ohlin theorem states that a country will export goods that:
A. Use its abundant factors intensively
B. Require the most labour regardless of endowment
C. Use its scarce factors intensively
D. Have the highest absolute advantage
Answer: Option A
Solution (By JKSSB Mock Tests)
According to the Heckscher-Ohlin theorem, a country exports goods that intensively use its relatively abundant factors of production and imports goods that intensively use its scarce factors.

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1
The 'outcome budget' presents:
A. expected outcomes of government programmes
B. only capital receipts
C. only revenue receipts
D. only financial outlays

Correct Answer: Option A


Explanation:
An outcome budget links financial outlays with expected outcomes of government schemes.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Goods and Services Tax' on print media advertising is:
A. 0%
B. 18%
C. 5%
D. 12%

Correct Answer: Option C


Explanation:
Advertising in print media attracts 5% GST.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following methods estimates national income by summing wages, rent, interest and profit?
A. Value added method
B. Income method
C. Production method
D. Expenditure method

Correct Answer: Option B


Explanation:
The income method sums all factor incomes: wages, rent, interest and profit.

This question belongs to: Economy GK Economy Set 1