Foundations Of Modern Trade Theory

A. 1W = 3B
B. 1W = 4 1/2B
C. 1W = 5B
D. 1W = 6B

A. Beer
B. Wine
C. Both products
D. neither products

A. A would export X to B
B. A would export Y to B
C. Neither country would want to trade
D. None of the above

A. Product X
B. Product Y
C. Neither X nor Y
D. Both X and Y

A. actual differences in labor productivity between countries
B. relative differences in labor productivity between countries
C. Both (a) and (b)
D. Neither (a) nor (b)

A. Absolute advantage
B. Comparative advantage
C. Physical advantage
D. Which way the wind blows

A. The labor theory of value
B. How much the autarky price differs from international terms of trade change
C. The fact that a country must lose from trade
D. All of the above

A. Is the philosophy of free international trade?
B. Was a system of export promotion and barriers to imports practiced by governments?
C. Was praised by Adam Smith in the Wealth of Nations
D. Both (a) and (c)

A. There is no basis for gainful trade for either country
B. Both countries gain from trade
C. Only one country gains from trade
D. One country gain and the other country loses from trade

A. Adam Smith
B. David Ricardo
C. Eli Heckscher
D. Berti IOhlin