Deck 9: 0: Sec 90 Mc Application International Trade

Question 1

A logical starting point from which the study of international trade begins is

A)the recognition that not all markets are competitive.
B)the recognition that government intervention in markets sometimes enhances the economic welfare of the society.
C)the principle of absolute advantage.
D)the principle of comparative advantage.

Answer 1

A

Question 2

Which of the following is not an important question for economic policy raised by the experience of the textile industry?

A)How does international trade affect consumer well-being?
B)Who gains and who loses from free trade among countries?
C)How do the gains from trade compare to the losses?
D)Which argument for restricting free trade is politically feasible?

Answer 2

D