International Trade

Question 1

Which trade theory holds that nations can increase their economic well-being by specialising in the production goods they produce more efficiently than anyone else

Answer 1

The theory of absolute adv

Question 2

Which theory holds that nations should produce those goods for which they have the greatest relative adv

Answer 2

Theory of comparative adv

Question 3

Absolute adv

Answer 3

When a country can produce a good or service for a lower cost than another country

Question 4

If a major econ with a trade feficit were to take action to increase exports this could mean

Answer 4

Increasing portectionsinsm from its trade partners

Question 5

Which one of the follloiwing sttaements is trye regrding the way in whcih a lack of property rights can act as a barrier to growth and development

Answer 5

A scarce resource is depleted to extinction because it had zero cost to the users