Classical Trade Theory and Standard Theory of International Trade
Which trade model suggest that everyone benefits from trade?
The Ricardian trade model suggest that everyone benefits from trade.
What is the main objective foreign trade policy according to mercantilism?
The main objective foreign trade policy is to increase the gold stock according to mercantilism.
How is it called the situation in which one part gains in the expense of the other part in economic theory?
In economic theory, zero- sum game represents the situation in which one part gains in the expense of the other part.
How is it called the countiries trying to give foreign trade surplus for social and political purposes ?
The countries trying to give foreign trade surplus for social and political purposes are called Neomercantilist.
Who constructed the specie-flow theory?
David Hume constructed the specie-flow theory.
In which book did David Hume first question mercantilism?
David Hume questioned mercantilism first in the book called "Political Discourse"which was published in 1752.
What does "laissez-faire" mean in business?
"Laissez-faire" means the policy of government that stresses non-interference in business.
Which book constitutes the Classical Liberalism ve Classical Economics School?
THe Wealth of Nations, written by Adam Smith, constitutes the Classical Liberalism ve Classical Economics School.
Who is "the principle of comparative advantage" attributed to?
The principle of comparative advantage is generally attributed to David Ricardo.
How is the goods or production factors called that are identical and thus perfectly substitutable in consumption, or production called?
The goods or production factors that are identical and thus perfectly substitutable in consumption, or production called homogeneous.
Which theory suggest the idea that the cost of a good (the price of that good in the absence of demand conditions) is measured by the amount of labour spent for its production?
Labour theory of value suggests the idea that the cost of a good (the price of that good in the absence of demand conditions) is measured by the amount of labour spent for its production.
In which book the theory of absolute advantage was introduced by Adam Smith?
The theory of absolute advantage was introduced in the book of "Wealth of Nations" by Adam Smith.
How is the country’s advantage to other countries due to its climate, natural resources and labor ability called?
The country’s advantage to other countries due to its climate, natural resources and labor ability is called natural advantage.
How is the quantity of a good that can be produced per unit of labor input called?
The quantity of a good that can be produced per unit of labor input is called labor productivity.
What is the term for the situation in which a country does not trade with the rest of the world?
Autarky is the term for the situation in which a country does not trade with the rest of the world.
What is the term for the benefits an individual, investor or business misses out on when choosing one alternative over another?
Opportunity costs is the term for the benefits an individual, investor or business misses out on when choosing one alternative over another
Who developed the modern version of the comparative advantage ?
The modern version of the comparative advantage was developed by the economists Eli Heckscher and Bertil Ohlin.
How is that the nation has to give up more of one commodity to release sufficient resources to produce each additional unit of another commodity called?
That the nation has to give up more of one commodity to release sufficient resources to produce each additional unit of another commodity is called increased opportunity cost.
What is the term for a curve that gives the nation’s offer of quantity of exports and imports?
Offer curve is the term for a curve that gives the nation’s offer of quantity of exports and imports.
What is the term for the price the country receives from foreign buyers for its export products, relative to the price that the country pays foreign sellers for its import products?
Terms of trade is the price the country receives from foreign buyers for its export products, relative to the price that the country pays foreign sellers for its import products.