1.Based on the concept of comparative advantage, which product should South Korea focus on exporting?
2.What is the opportunity cost of producing one DVD in South Korea?
3.How can G. MacDougall’s empirical findings be best interpreted?
4.G. MacDougal analyzed the export-to-labor productivity ratios between the United States and the United Kingdom to evaluate which economic theory?
5.Who is credited with establishing the theory of reciprocal demand?
6.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?
7.Which of the following statements is true in an autarky equilibrium?
8.Why do small countries typically gain the most from free trade?
9.What does the term 'terms of trade' refer to in economic transactions?
10.When a nation's production possibility curve is bowed outward (concave towards the origin), what type of opportunity costs does it indicate?
11.What happens to the price line if the relative price (MRT) of good S rises?
12.What is the relative price (marginal rate of transformation) of good S expressed in terms of good T?
13.In which product does Country A hold a comparative advantage?
14.What is the relative price of wine measured in units of beer in country A when it operates under autarky?
15.Under autarky conditions, what is the relative price of good X expressed in terms of good Y in country A?
16.If nations engaged in trade based on absolute advantage, what would be the expected outcome?
17.In which product does Country A hold an absolute advantage?
18.What factor defines absolute advantage between nations?
19.Which of the following statements aligns with the Classical theory of international trade?
20.According to the classical trade theories proposed by Smith and Ricardo, which of the following outcomes is expected?