Economics-International Trade

Trade between countries

Trade between regions

Trade between provinces

Both (b) and (c)

Product X

Product Y

Neither X nor Y

Both X and Y

actual differences in labor productivity between countries.

relative differences in labor productivity between countries.

both (a) and (b)

neither (a) nor (b)

Adam Smith; recently proven theories in economics; protectionism

David Ricardo; oldest theories in economics; free trade

Adam Smith; oldest theories in economics; free trade

David Ricardo; recently proven theories in economics; protectionism

produce the goods they make with the highest quality.

produce the goods they can produce the fastest.

produce the goods for which the opportunity cost is the lowest relative to other countries’ costs.

produce the same goods and exchange a little of each while keeping some for themselves

A.

Both A and B should produce grain.

B.

No country should produce grain.