International trade is based on the idea that ?
Correct answer: D. Resources are less mobile internationally than are goods
- A. Exports should exceed imports
- B. imports should exceed exports
- C. Resources are more mobile internationally than are goods
- D. Resources are less mobile internationally than are goods
Explanation
Goods can cross borders more easily than most productive resources such as labour and capital, which remain relatively immobile internationally. This difference allows trade to substitute partly for the movement of resources.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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