If in a two nation ( A and B ) , two commodity ( X and Y ) world , it is established that nation A has a comparative advantage in commodity X, then nation B must have:
An absolute advantage in commodity Y
An absolute disadvantage in commodity Y
A comparative disadvantage in commodity Y.
Comparative advantage in commodity Y
The term tariff as used in International trade , refers to
A government payment to encourage exports
A tax on imports
The prices of goods when they leave the producing country
A limit on the quantity of a good that can be imported in to a country
The commodity in which the nation has the smallest absolute disadvantage the commodity of its:
Absolute disadvantage
Absolute advantage
Comparative disadvantage
Comparative advantage
A rough measure of the degree of economic interdependence of a nation is given by.
The size of the nations population
The percentage of to population to its GDP
The percentage of a nation's import and exports to its GDP
All of the above
International Trade is most important to the standard of living of :
The united states
Switzerland
Germany
England
Economics suggest that trades main advantage is allowing the world to achieve;
More self - sufficiency
Greater equality between countries
Economic growth for all countries
Specialization and the resulting economics of scale
International trade theory refers to
The microeconomic aspects of international trade
The macroeconomic aspects of International trade
Open economy macroeconomic or International finance
Economic theory :
Seeks to explain economic events
Seeks to predict economic events
Abstracts from the many details that surrounds an economic event
Developing countries , if compared with other country , have :
A lower rate of literacy
A greats degree of equality in the income distribution
A lower infant mortality rate
A smaller percentage of the labour force in urban areas
What proportion of International trade is based on absolute advantage ?
All
Most
Some
Constant
