Trade based on absolute advantage was presented by:

Related Mcqs:

1. 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...

2. When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?

   A. trade diversion B. trade channeling C. trade creation and trade diversion D. trade creation...

3. 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...

4. Absolute advantage is determined by ?

   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)...

5. Country A has an absolute advantage in__________?

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

6. Country B has an absolute advantage in ?

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

7. Country A has an absolute advantage in ?

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

8. 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...

9. If countries were to trade along the lines of comparative advantage ?

   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...

10. How is termed equal rights of trade of trade without giving monopolies or preferences to an individual country ?

    A. Open door market B. Open door country C. Open sky market D. Free economy...