David Ricardo's theory in favour of free trade uses the idea of
Multilateral advantage
Mutual advantage
Absolute advantage
Comparative advantage
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 gravity model of International trade predicts that trade between two nations is larger
The larger the two nations
The closer the nations
The more open are the two nations
All of the above
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
The commodity in which the nation has the smallest absolute disadvantage the commodity of its:
Absolute disadvantage
Comparative disadvantage
International economics deals with
The flow of goods , services and payments among nations
directed at regulating the flow of goods , services and payments
The effects of polices on the welfare of the nation
Which of the following is not an assumption generally made in the study of International economics ?
Two nations
Two commodities
Perfect International al mobility of factors
Two factors of products
According to Adam smith , International trade was based on:
Both absolute and comparative advantage
Nether absolute nor comparative advantage
A policy of developing local industries that can compete with imports is referred to as
Export promotion
Unbalanced growth
Industrial promotion
Import substitution
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
