Modern trade theory contends that the pattern of world trade is governed by
A. Differences in supply conditions and demand conditions
B. Supply conditions only
C. Demand conditions only
D. None of the above
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When nations are of similar size, and have similar taste patterns ,the gains from trade
A. are shared equally between them.
B. are impossible to determine.
C. are too small, so that trading not beneficial.
D. are determined by the nation that has comparative advantage in the more essential product.
The commodity terms of trade measures
A. The rate at which exports exchange for imports
B. The influence trade has on productivity levels
C. The effect on income of the trading nation
D. The improvement in a nation's welfare
According to the mercantilists, a nation's welfare would improve if it maintained a surplus of exports over imports.
A. 对
B. 错
The mercantilists maintained that a free-trade policy best enhances a nation's welfare.
A. 对
B. 错