DBIA Exam (Latest 2025 / 2026) Test Review Questions & Answers | 100% Correct | Grade A
Question:
Primarily, a nation imports goods and services for the following reasons:
Answer:
Price Quality Availability Demand
Question:
refers to the advantage a nation gets from producing products more efficiently with the same input than other nations.
Answer:
Absolute Cost Advantage Theory
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Question:
suggests while producing the costs should be checked carefully and compared and then the product asking comparatively less cost should be produced.
Answer:
Comparative Cost Advantage Theory
Question:
a nation should specialize its production in products which it has an abundance of production factors
Answer:
Heckscher-Ohlin's Factor Endowment Theory (H-O Model)
Question:
which means just the opposite of the principle of the H-O model i.e. capital- rich countries exporting labor-intensive products and vice versa.
Answer:
leontief paradox
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