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- Subject
- Basic of Economicseconomics-mcqs › basic-of-economics
- Published
- 26 May 2019
- Last updated
- 28 May 2026
Explanation
Two countries can gain from trade if they have differences in production costs and price ratios. Variations in tariff rates alone do not guarantee mutual benefits. Therefore, both cost and price ratio differences are essential factors enabling gains from foreign trade.
More Basic of Economics MCQs
Practice related questions from the same subject.
- 1.Which of the following best describes deflation?
- 2.Which of the following represents a legitimate form of currency?
- 3.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
- 4.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?
- 5.What is the standard abbreviation used to denote barrels when measuring oil?
- 6.What does the term 'commercial policy' refer to?
- 7.Which German city is recognized for hosting the world's very first automobile factory?
- 8.What components are included in a country's balance of payments?
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