According to Adam smith , International trade was based on:
Absolute advantage
Comparative advantage
Both absolute and comparative advantage
Nether absolute nor comparative advantage
Which of the following is not the subject matter of International finance?
Foreign exchange markets
The balance of payments
The basis and the gain from trade
Polices to adjust balance of payments duse equilibria
International trade theory refers to
The microeconomic aspects of international trade
The macroeconomic aspects of International trade
Open economy macroeconomic or International finance
All of the above
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 commodity in which the nation has the smallest absolute disadvantage the commodity of its:
Absolute disadvantage
Comparative disadvantage
Over time , the economics interdependence of nations has
Grown
Diminished
Remained unchanged
Cannot say
Economic theory :
Seeks to explain economic events
Seeks to predict economic events
Abstracts from the many details that surrounds an economic event
David Ricardo's theory in favour of free trade uses the idea of
Multilateral advantage
Mutual advantage
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
Which of the following products are not produced at all in the united states?
Coffee,tea,cocoa
Steel, copper , aluminium
Petroleum , coal , natural gas
Type writers, computers , airplanes
