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- Subject
- Foundations Of Modern Trade Theoryeconomics-mcqs › foundations-of-modern-trade-theory
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
Explanation
Canada gains no advantage from trading if it exchanges goods at its own marginal rate of transformation, as there is no difference in opportunity costs to exploit. Gains from trade arise when countries trade at rates different from their own opportunity costs.
More Foundations Of Modern Trade Theory MCQs
Practice related questions from the same subject.
- 1.According to G. MecDougall's research, what relationship did he find between labor productivity and export ratios?
- 2.Which of the following factors can contribute to dynamic gains from trade?
- 3.In a self-sufficient economy, where does the production point lie when the community optimizes its living standards?
- 4.In an economy, when a society achieves the highest possible standard of living, where is its production and consumption point located?
- 5.Between 1990 and 2000, which pair of countries experienced an improvement in their terms of trade?
- 6.When a nation's production possibilities frontier is a straight line sloping downward, what type of opportunity costs does it indicate?
- 7.What happens to the budget line when the relative price (MRT) of T rises?
- 8.What is the marginal rate of transformation (MRT) of good T expressed in terms of good S?
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