1.If two countries engage in trade based on their comparative advantages, what would Country A export to Country B?
2.In which product does Country B hold an absolute advantage?
3.What factor determines comparative advantage between nations?
4.According to Ricardo's classical theory, what primarily determines the pattern of international trade?
5.What primarily determines the benefits a country gains from engaging in international trade?
6.What best describes the mercantilist economic system?
7.When the international trade terms fall between the opportunity costs of two countries, what is the outcome?
8.Who is credited with the first formal introduction of the principle of comparative advantage?
9.Based on the concept of comparative advantage, which product should South Korea focus on exporting?
10.What is the opportunity cost of producing one DVD in South Korea?
11.How can G. MacDougall’s empirical findings be best interpreted?
12.G. MacDougal analyzed the export-to-labor productivity ratios between the United States and the United Kingdom to evaluate which economic theory?
13.Who is credited with establishing the theory of reciprocal demand?
14.If the price of good S in country A without trade is lower than in country B, what is the expected outcome once trade is permitted?
15.Which of the following statements is true in an autarky equilibrium?
16.Why do small countries typically gain the most from free trade?
17.What does the term 'terms of trade' refer to in economic transactions?
18.When a nation's production possibility curve is bowed outward (concave towards the origin), what type of opportunity costs does it indicate?
19.What happens to the price line if the relative price (MRT) of good S rises?
20.What is the relative price (marginal rate of transformation) of good S expressed in terms of good T?