Micro Economics MCQ (GK Set-1) with Answers

if some can still be made better off without making someone else worse off.

if there are still mutually beneficial trades which can be realized.

if I am unhappy with what I have but I cannot find a trading partner because everybody else is happy with what they have

if everybody s wellbeing can be increased simultaneously.

it can produce that good at a lower opportunity cost than its trading partner.

it can benefit by restricting imports of that good.

it can produce that good using fewer resources than its trading partner.

it must be the only country with the ability to produce that good.

Unrestricted international trade benefits every person in a country equally.

Trade can benefit everyone in society because it allows people to specialize in activities in which they have a comparative advantage.

People that are skilled at all activities cannot benefit from trade

Trade can benefit everyone in society because it allows people to specialize in activities in which they have an absolute advantage

countries should specialize in the production of goods that they enjoy consuming

countries with a comparative advantage in the production of every good need not specialize.

countries should specialize in the production of goods for which they have a lower opportunity cost of production than their trading partners

countries should specialize in the production of goods for which they use fewer resources in production than their trading partners.

A self-sufficient country can, at best, consume on its production possibilities frontier.

Only countries with an absolute advantage in the production of every good should strive to be self-sufficient.

A self-sufficient country consumes outside its production possibilities frontier

Self-sufficiency is the road to prosperity for most countries.