Increasing opportunity costs suggest that:
A. Resources are not perfectly shiftable between the production of two goods
B. Resources are fully shiftable between the production of two goods
C. A country's production possibilities curve appears as a straight line
D. A country's production possibilities curve is bowed inward (i.e., convex) in appearance
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The trading-triangle concept is used to indicate a nation's:
A. Exports, marginal rate of transformation, terms of trade
B. Imports, terms of trade, marginal rate of transformation
C. Marginal rate of transformation, imports, exports
D. Terms of trade, exports, imports
Assuming Increasing cost conditions, trade between two countries would not be likely if they have:
A. Identical demand conditions but different supply conditions
B. Identical supply conditions but different demand conditions
C. Different supply conditions and different demand conditions
D. Identical demand conditions and Identical supply conditions
The earliest statement of the principle of comparative advantage is associated with:
Adam Smith
B. David Ricardo
C. Eli Heckscher
D. Bertil Ohlin
If Hong Kong,China and Taiwan,China had Identical production conditions and were subject to Increasing costs of production:
A. Trade would depend on differences in demand conditions
B. Trade would depend on economies of large-scale production
C. Trade would depend on the use of different currencies
D. There would be no basis for gainful trade
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