International trade is based on the nation that ?
Correct answer: B. Goods are more mobile internationally than are resources
- A. Different currencies are an obstacle to international trade
- B. Goods are more mobile internationally than are resources
- C. Resources are more mobile internationally that are goods
- D. A country's exports should always exceed its imports
Explanation
International trade is feasible because goods generally cross borders more readily than productive resources such as labor and capital. Different currencies do not prevent trade, and exports need not always exceed imports.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
The classical trade theories of Smith and Ricardo predict that ?
According to the Classical theory of international trade ?
Absolute advantage is determined by ?
If Hong Kong and Taiwan have identical production possibilities curves that are subject to increasing opportunity costs ?
According to the human capital view of education ?
According to the signaling view of the education ?