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- Foundations Of Modern Trade Theoryeconomics-mcqs › foundations-of-modern-trade-theory
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
Which of the following statements aligns with the Classical theory of international trade?
Multiple choice question for Foundations Of Modern Trade Theory. Select an option, then review the explanation below.
Explanation
The Classical theory of international trade does not support any of the listed claims. It does not suggest that only low-wage countries export, that only high-wage countries import, or that higher wages directly cause higher prices. Therefore, all the provided statements are incorrect.
More Foundations Of Modern Trade Theory MCQs
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- 1.According to G. MecDougall's research, what relationship did he find between labor productivity and export ratios?
- 2.Which of the following factors can contribute to dynamic gains from trade?
- 3.Under conditions of free trade, when would Canada fail to gain any benefits from trading with Sweden?
- 4.In a self-sufficient economy, where does the production point lie when the community optimizes its living standards?
- 5.In an economy, when a society achieves the highest possible standard of living, where is its production and consumption point located?