Match the items of List-I with the items of List-II and indicate the correct answer.
List-I | List-II |
a. Absolute cost advantage theory | 1. The empirical evidence based on US export of labour-intensive goods challenging the factor endowment theory. |
b. Comparative cost advantage theory | 2. A country with a direct cost advantage in the production of a product on account of greater efficiency. |
c. Factor endowment theory | 3. A country should produce and export a commodity that primarily involves a factor of production in abundance within the country. |
d. Leontief paradox | 4. A country should specialize in the production and export of a commodity in which it possesses the greatest relative advantage. |
A. a-2, b-4, c-3, d-1
B. a-2, b-4, c-1, d-3
C. a-2, b-1, c-3, d-4
D. a-1, b-4, c-3, d-2
Answer: Option A
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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