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.Management Sciences
Category: Foundations Of Modern Trade Theory
According to the principle of comparative advantage ?
A. South Korea should export steel
B. South Korea should export steel and DVDs
C. Japan should export steel
D. Japan should export steel and DVDs
International trade is based on the nation that ?
A. Different currencies are an obstacle to international trade
B. Goods are more mobile internationally than are resources
C. Resources are more mobile internationally that are goods
D. A country’s exports should always exceed its imports
If the autarky price of S were lower in country A than in country B then if trade were allowed ?
A. A would likely export S to B
B. A would likely import S from B
C. neither country would want to trade
D. None of the above
The classical trade theories of Smith and Ricardo predict that ?
A. Countries will completely specialize in the production of export goods
B. Considerable trade will occur between countries with different levels of technology
C. Small countries could obtain of the gains from trade when trading with large countries
D. All of the above
In aukarky, when a community maximizes its standard of living, its production and consumption point is ?
A. below the production possibility frontier
B. On the production possibility frontier
C. above the production possibility frontier
D. can’t tell without more information
In autarky, when a community maximizes its standard of living its production point is ?
A. below the production possibility frontier
B. on the production possibility frontier
C. above the production possibility frontier
D. can’t tell without more information
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