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Foundations Of Modern Trade Theoryeconomics-mcqs › foundations-of-modern-trade-theory
Published
1 Jun 2019
Last updated
28 May 2026

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Who is credited with establishing the theory of reciprocal demand?

Multiple choice question for Foundations Of Modern Trade Theory. Select an option, then review the explanation below.

Choose the correct answer

Explanation

John Stuart Mill is recognized for developing the theory of reciprocal demand, which explains how trade terms are determined between countries. The other theories, such as absolute advantage and comparative advantage, were proposed by different economists, while mercantilism is an earlier economic doctrine.

Practice related questions from the same subject.

  1. 1.According to G. MecDougall's research, what relationship did he find between labor productivity and export ratios?
  2. 2.Which of the following factors can contribute to dynamic gains from trade?
  3. 3.Under conditions of free trade, when would Canada fail to gain any benefits from trading with Sweden?
  4. 4.In a self-sufficient economy, where does the production point lie when the community optimizes its living standards?
  5. 5.In an economy, when a society achieves the highest possible standard of living, where is its production and consumption point located?

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