According to the Classical theory of international trade ?

A. Only countries with low wages will export
B. Only countries with high wages will import
C. Countries with high wages will have higher prices
D. All of the above are false

Absolute advantage is determined by ?

A. Actual differences in labor production between countries
B. Relative differences in labor productivity between countries
C. Both (a) and (b)
D. Neither (a) nor (b)

With international trade, what would be the maximum number of DVDs that Japan would be willing to export to South Korea in exchange for each ton of steel ?

A. One dvd
B. Two dvds
C. Three dvds
D. Four dvds

If Hong Kong and Taiwan have identical production possibilities curves that are subject to increasing opportunity costs ?

A. Trade would depend on difference in demand conditions
B. Trade would depend on economies of large-scale production
C. Trade would depend on the use of different currencies
D. There would be no basis for gainful trade

International trade is based on the nation that ?

A. Different currencies are an obstacle to international trade
B. Goods are more mobile internationally than are resources
C. Resources are more mobile internationally that are goods
D. A country’s exports should always exceed its imports

According to the Principle of absolute advantage Japan should ?

A. Export steel
B. Export dvds
C. Exports steel and dvds
D. There is no basis for gainful specialization and trade

With International trade, what would be the maximum amount of steel that South Korea would be willing to export to Japan in exchange for each DVD ?

A. One-half ton of steel
B. One ton of steel
C. Two tons of steel
D. Two and one-half tons of steel

Which of the following could be considered critical s in development economics ?

A. How do the poorest 2/3 of the world live?
B. What are the major theories of economic development
C. What factors affect labor skills in the third world?
D. All of the above are correct

The opportunity cost of one DVD in Japan is ?

A. One ton of steel
B. Two tons of steel
C. Three tons of steel
D. Four tons of steel

The poorest region of the World is ?

A. The middle east
B. Sub saharan africa
C. Asia
D. Latin america