The relative price (MRT) of T in terms of S is ?
A. 2
B. 1/2
C. 500
D. 1000
Country B has the comparative advantage in ?
Country B has the comparative advantage in ?
A. Wine
B. Beer
C. Both wine and beer
D. Neither wine nor beer
In autarky the relative price of wine, in terms of beer, in Country B is ?
In autarky the relative price of wine, in terms of beer, in Country B is ?
A. 1W = 3B
B. 1W = 4 1/2B
C. 1W = 5B
D. 1W = 6B
Country A has an absolute advantage in ?
Country A has an absolute advantage in ?
A. Beer
B. Wine
C. Both products
D. neither products
If countries were to trade along the lines of comparative advantage ?
If countries were to trade along the lines of comparative advantage ?
A. A would export X to B
B. A would export Y to B
C. Neither country would want to trade
D. None of the above
Country B has an absolute advantage in ?
Country B has an absolute advantage in ?
A. Product X
B. Product Y
C. Neither X nor Y
D. Both X and Y
Comparative advantage is determined by ?
Comparative advantage is determined by ?
A. actual differences in labor productivity between countries
B. relative differences in labor productivity between countries
C. Both (a) and (b)
D. Neither (a) nor (b)
In the classical model of Ricardo, the direction of trade is determined by ?
In the classical model of Ricardo, the direction of trade is determined by ?
A. Absolute advantage
B. Comparative advantage
C. Physical advantage
D. Which way the wind blows
The gains from international trade are closely related to ?
The gains from international trade are closely related to ?
A. The labor theory of value
B. How much the autarky price differs from international terms of trade change
C. The fact that a country must lose from trade
D. All of the above
Mercantilism ?
Mercantilism ?
A. Is the philosophy of free international trade?
B. Was a system of export promotion and barriers to imports practiced by governments?
C. Was praised by Adam Smith in the Wealth of Nations
D. Both (a) and (c)