Multiple Choice
According to Adam Smith, diversification of labour at the international level requires the
A) Existence of absolute differences in costs
B) Existence of comparative differences in costs
C) Existence of least cost combination of factors
D) Existence of labour involved in production of a commodity
Correct Answer:

Verified
Correct Answer:
Verified
Q10: Under constant opportunity cost, the production possibility
Q11: According to the theory of comparative advantage,
Q12: Haberler's Opportunity cost theory explains the doctrine
Q13: The theory of comparative advantage in international
Q14: In Ricardian theory of international trade, the
Q16: Adam Smith favoured<br>A)Free trade among nations<br>B)Regulation of
Q17: David Ricardo believed that the international trade
Q18: The price criterion if the H-O theory
Q19: The basics and gains from international trade
Q20: Heckscher-Ohlin theory of trade is based on<br>A)Two-by-two-by-two