A. actual differences in labor production between countries
B. relative differences in labor productivity between countries
C. Both (a) and (b)
D. Neither (a) nor (b)
Related Mcqs:
- According to the Principle of absolute advantage Japan should ?
A. Export steel
B. Export DVDs
C. Exports steel and DVDs
D. There is no basis for gainful specialization and trade - Country A has an absolute advantage in__________?
A. Product X
B. Product Y
C. Neither X nor Y
D. Both X and Y - If the countries were to trade along the lines of absolute advantage ?
A. A would export X to B
B. B would import Y from A
C. Neither country would want to trade
D. None of the above - Country B has an absolute advantage in ?
A. Product X
B. Product Y
C. Neither X nor Y
D. Both X and Y - Country A has an absolute advantage in ?
A. Beer
B. Wine
C. Both products
D. neither products - Comparative advantage is determined by ?
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) - The comparative advantage comes if each trading partners has a product that will bring a better price in another country than it will at home. Which economist proposed the principle of comparative advantage ?
A. Adam Smith
B. David Ricardo
C. David Smith
D. Adam Ricardo - If tastes are identical between countries, then comparative advantage is determined by ?
A. supply condition only
B. demand conditions only
C. supply and demand conditions
D. can’t tell without more information - According to the principle of comparative advantage ?
A. South Korea should export steel
B. South Korea should export steel and DVDs
C. Japan should export steel
D. Japan should export steel and DVDs - Country B has the comparative advantage in ?
A. Wine
B. Beer
C. Both wine and beer
D. Neither wine nor beer
