a-1, b-4, c-2, d-3
a-1, b-4, c-3, d-2
a-4, b-1, c-2, d-3
a-4, b-1, c-3, d-2
Answer is Right!
Answer is Wrong!
The correct answer is: A. a-1, b-4, c-2, d-3
- The supply side of international trade refers to the factors that determine the quantity of goods and services that a country is willing and able to export. These factors include the country’s natural resources, labor force, capital stock, and technology.
- The demand side of international trade refers to the factors that determine the quantity of goods and services that a country is willing and able to import. These factors include the country’s population, income, and tastes.
- Opportunity cost international trade theory is a theory that explains why countries trade with each other. The theory states that countries will specialize in the production of goods and services in which they have a comparative advantage, and then trade those goods and services with other countries.
- The real cost theory of international trade is a theory that explains how countries benefit from international trade. The theory states that countries benefit from international trade because it allows them to consume more goods and services than they would be able to produce if they were self-sufficient.
David Ricardo was an English economist who developed the theory of comparative advantage. Bastable and Alfred Marshall were British economists who developed the theory of opportunity cost. G. Haberler was an Austrian-American economist who developed the real cost theory of international trade. Alfred Marshall and Edgeworth were British economists who developed the theory of general equilibrium.