1. In the context of international trade, which one of the following statements is false?

A.

Two countries may benefit from trade, even if their production possibility frontiers have identical shapes, if preferences differ in the two countries.

B.

Two countries may benefit from trade, even if their production possibility frontiers have identical shapes, if industries have substantial economies of scale.

C.

When two countries benefit from the opening up of trade, all citizens in each country will benefit.

D. Differences in the degree of human capital offer one reason why two countries may have production possibility frontiers that differ in shape.

2.Which of the following statements is NOT true regarding the advantages and disadvantages of a sole proprietorship?

A

A sole proprietorship can be created without formal agreements or state filings.

B

The proprietor reports income from the business on a personal tax return.

C.

The proprietor alone bears liability for the losses.

D. It is usually easy for sole proprietorships to raise capital.

3.Which one of the following is false? The convention of Collective Cabinet Responsibility requires that Cabinet Ministers are bound:

A		by cabinet policy decisions.
B		to support cabinet policy decisions in parliament and otherwise.
C		to inform the Prime Minister of any private voicing of dissent by Cabinet colleagues about decided policy.
D		to keep secret the deliberations of the cabinet