Question 1

If a country enjoys an absolute advantage in the production of all commodities then also trade is possible". Who said this?

Accepted Answer

A) Adam Smith 
B) David Ricardo 
C) J.S.Mill 
D) Alfred Marshall 
A) Adam Smith 
B) David Ricardo 
C) J.S.Mill 
D) Alfred Marshall

Question 2

Absolute difference in Cost is explained by

Accepted Answer

A) David Ricardo 
B) Adam Smith 
C) J.S.Mill 
D) Alfred Marshall 
A) David Ricardo 
B) Adam Smith 
C) J.S.Mill 
D) Alfred Marshall

Question 3

Which of the following is NOT an assumption of Comparative Cost Advantage Theory?

Accepted Answer

A) Perfect Competition 
B) Increasing return to scale 
C) Perfect Mobility of labor within countries 
D) Homogenoeus labor 
A) Perfect Competition 
B) Increasing return to scale 
C) Perfect Mobility of labor within countries 
D) Homogenoeus labor

Question 4

r1 / w1 < r2 / w2 means

Accepted Answer

A) Nation 1 is capital abundant 
B) Nation 1 is labor abundant 
C) Nation 2 is capital abundant 
D) Nation 2 has high wages 
A) Nation 1 is capital abundant 
B) Nation 1 is labor abundant 
C) Nation 2 is capital abundant 
D) Nation 2 has high wages

Question 5

Abundance of a factor makes it

Accepted Answer

A) Easy 
B) More 
C) Expensive 
D) Cheap 
A) Easy 
B) More 
C) Expensive 
D) Cheap

If a country enjoys an absolute advantage in the production of all commodities then also trade is possible". Who said this?

Absolute difference in Cost is explained by

Which of the following is NOT an assumption of Comparative Cost Advantage Theory?

r1 / w1 < r2 / w2 means

Abundance of a factor makes it

Key Concepts in Macroeconomics and Economic History

National Income and GDP Calculation in India

National Income and Classical Theory of Employment

Economic Concepts and Policies

Understanding Inflation, Business Cycles, and Monetary Policy

Understanding Terms of Trade and International Trade Policies

International Trade Policies and Organizations

International Trade and Economic Policies

Balance of Payment and International Trade

International Trade and Finance

Understanding Foreign Exchange Market and Exchange Rate Systems: Part 1

Understanding Foreign Exchange Market and Exchange Rate Systems: Part 2

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Exam 6: International Trade Theories and Concepts

If a country enjoys an absolute advantage in the production of all commodities then also trade is possible". Who said this?

Absolute difference in Cost is explained by

Which of the following is NOT an assumption of Comparative Cost Advantage Theory?

r1 / w1 < r2 / w2 means

Abundance of a factor makes it

Key Concepts in Macroeconomics and Economic History

National Income and GDP Calculation in India

National Income and Classical Theory of Employment

Economic Concepts and Policies

Understanding Inflation, Business Cycles, and Monetary Policy

Understanding Terms of Trade and International Trade Policies

International Trade Policies and Organizations

International Trade and Economic Policies

Balance of Payment and International Trade

International Trade and Finance

Understanding Foreign Exchange Market and Exchange Rate Systems: Part 1

Understanding Foreign Exchange Market and Exchange Rate Systems: Part 2

Filters