AGB 302 QUESTIONS WITH CORRECT
ANSWERS 2025
free trade - CORRECT ANSWER -
refers to a situation where a government does not attempt to influence through quotas or duties
what its citizens can buy from another country or what they can produce and sell to another cou
ntry
Adam Smith - CORRECT ANSWER -
Argued that countries should specialize in the production of goods for which they have absolute a
dvantage
Positive-sum - CORRECT ANSWER -
The theory of comparative advantage suggests that trade is a (blank) game in which all countries t
hat participate realize economic gains
Product Life Cycle Theory - CORRECT ANSWER -
Argues that a large proportion of the worlds new products had been developed by us firms
economies of scale - CORRECT ANSWER -
unit cost reductions associated with a large scale of output
free trade - CORRECT ANSWER -
Which of the following refers to a situation where government does not attempt to influence thro
ugh quotas or duties what its citizens can buy from another country?
International differences in labor productivity - CORRECT ANSWER -
David ricardos theory of comparative advantage explains global trade in terms of the
New Trade Theory - CORRECT ANSWER -
Can be used to justify limited government intervention to support the development of certain exp
ort oriented industries?
More efficient than any other country in producing it - CORRECT ANSWER -Absolute advantage
ANSWERS 2025
free trade - CORRECT ANSWER -
refers to a situation where a government does not attempt to influence through quotas or duties
what its citizens can buy from another country or what they can produce and sell to another cou
ntry
Adam Smith - CORRECT ANSWER -
Argued that countries should specialize in the production of goods for which they have absolute a
dvantage
Positive-sum - CORRECT ANSWER -
The theory of comparative advantage suggests that trade is a (blank) game in which all countries t
hat participate realize economic gains
Product Life Cycle Theory - CORRECT ANSWER -
Argues that a large proportion of the worlds new products had been developed by us firms
economies of scale - CORRECT ANSWER -
unit cost reductions associated with a large scale of output
free trade - CORRECT ANSWER -
Which of the following refers to a situation where government does not attempt to influence thro
ugh quotas or duties what its citizens can buy from another country?
International differences in labor productivity - CORRECT ANSWER -
David ricardos theory of comparative advantage explains global trade in terms of the
New Trade Theory - CORRECT ANSWER -
Can be used to justify limited government intervention to support the development of certain exp
ort oriented industries?
More efficient than any other country in producing it - CORRECT ANSWER -Absolute advantage
