Which theory holds that nations should produce those goods for which it has the greatest relative advantage?

Related MCQs

• In country A, it takes 10 labor hours to produce cloth and 20 labor hours to produce grain. In country B, it takes 20 labor hours to produce cloth and 10 labor hours to produce grain. Which country should produce grain?
• Which trade theory holds that nations can increase their economic well-being by specializing in the production of goods they produce more efficiently than anyone else
• In North, it takes 50 labor hours to produce cloth and 100 hours to produce grain. In South, it takes 200 labor hours to produce cloth and 200 hours to produce grain. Which of the following statements is true?
• In country X, it takes 50 labor hours to produce cloth and 100 hours to produce grain. In country Y, it takes 200 labor hours to produce cloth and 200 hours to produce grain. At what price would X start to be willing to trade with Y?
• Which of the following theories holds that countries will produce and export products that use large amounts of production factors that they have in abundance?
• Export Promotion Capital Goods Scheme allows import of capital goods Free of import duty
• Export Promotion Capital Goods Scheme allows import of capital goods
• Which of the following holds that a government can improve the economic well-being of a country by encouraging exports and discouraging imports without a reliance on previous metals?
• Goods going out of the country on export or entering the county on import should get customs clearance by complying with the procedures prescribed under the-----
• If the CIF value of the consignment imported does not exceed----------------, the relative Bill of Entry is required to be filed by the registered courier service.