PPSCFPSCNTSPakistan govt jobs
- Subject
- Foundations Of Modern Trade Theoryeconomics-mcqs › foundations-of-modern-trade-theory
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
What happens to the budget line when the relative price (MRT) of T rises?
Multiple choice question for Foundations Of Modern Trade Theory. Select an option, then review the explanation below.
Explanation
An increase in the relative price of T causes the budget line to flatten, as the opportunity cost changes, making the slope less steep.
More Foundations Of Modern Trade Theory MCQs
Practice related questions from the same subject.
- 1.According to G. MecDougall's research, what relationship did he find between labor productivity and export ratios?
- 2.Which of the following factors can contribute to dynamic gains from trade?
- 3.Under conditions of free trade, when would Canada fail to gain any benefits from trading with Sweden?
- 4.In a self-sufficient economy, where does the production point lie when the community optimizes its living standards?
- 5.In an economy, when a society achieves the highest possible standard of living, where is its production and consumption point located?