According to the absolute differences in cost theory of trade
A) No country should specialize in the production of any commodity
B) Every country should specialize in the production of commodities which it can produce more cheaply than other countries and exchange it for commodities which are cheaper in other countries
C) Every country should specialize in production of goods which it can produce at higher cost than other countries and exchange it for commodities which are costlier than other countries
D) All of the above
Correct Answer:
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Q1: The main reason for different nations to
Q3: International trade refers to
A)Domestic trade
B)Inter-regional trade
C)Trade between
Q4: The classical theory of international trade is
Q5: The necessity of absolute differences in costs
Q6: The opportunity cost theory considers
A)Labour as the
Q7: The Comparative theory of international trade is
Q8: The H-O theory of international trade was
Q9: Community indifference curves have the same characteristics
Q10: The factor price ratio(PC/PL)A < (PC/PL)B of
Q11: The H-O theory assumed the prevalence of
A)Monopolistic
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