1. Both Ricardian and Heckscher-Ohlin theory assume that market is: a. Oligopoly b. Monopoly c. Monopolistic d. Pure competition 2. Economic development In Asia is characterized by: a. Rapid labor

1. Both Ricardian and Heckscher-Ohlin theory assume that market is: 

a. Oligopoly

b. Monopoly

c. Monopolistic

d. Pure competition

2. Economic development In Asia is characterized by: 

a. Rapid labor-intensive manufacturing

b. Rapid movement from labor-intensive to capital-intensive manufacturing

c. Slow movement of capital-intensive sector to service sector

d. None of the above

3. Import-substitution is: 

a. Important in early development stage and industrialization

b. Important at the outset of industrialization

c. Important during the later stage in economic development

d. None of the above

4. Positive correlation correlation between trade and income is determine by: 

a. Differences in technology

b. Similarities in income per capita

c. Similarities in tastes and preference

d. Differences in income per capita

5. High income per capita is associated with: 

   a. Prosperous agriculture

b. Absence of agricultural development

c. Prosperous service sector

d. Rapid industrialization

6. Intra -trade in Asia describes a market which is: 

a. Monopolistic

b. Pure competition

c. Monopoly

d. Oligopoly

7. There is no need for a country for____to gain from trade. 

a. Resource abundance

b. Government policies

c. Competitive

d. Treaty

8. In Asia, low import taxes were levied on: 

a. Consumption products

b. Output for exports

c. Agricultural products

d. None of the above

9. In reality, growth in Asian is due to: 

a. Differences in factor endowments

b. Similarities in factor endowment and factor prices

c. Similarities in factor endowment

d. Differences in technology

10. Export promotion strategy in Asia was designed for goods where: 

a. Demand is inelastic

b. Demand is elastic

c. Demand is unitary elastic

d. None of the above

11. What separates high income and low income countries

a. Level of agricultural production

b. Level of industrialization

c. Geographic location

d. Market access

12. Development in Asia has something to do with: 

a. Education and training

b. Abundant natural resources

c. Government policies

d. Foreign Technology

13, Which is true in Heckscher-theory of development? 

a. Greater trade for the greatest differences in factor endowments.

b. Lower trade for similarities of factor endowments.

c. Greater extra-trade

d. Similarities in tastes and preferences

14. In Ricardian model, it determines the countries' comparative advantage 

a. Labor

b. Exchange rate

c. Technology

d. Money

15. Lewis-Fei-Ranis model, small scale firm is successful due to: 

a. Proximity to skilled labor

b. Access to intermediate material inputs

c. Production of quality products

d. All of the above