The Theory of ________ Refers to a Theory of Trade

question 71

Multiple Choice

The theory of ________ refers to a theory of trade relationship that encourages nations to concentrate on exporting the goods they can produce most efficiently.

• A)comparative advantage
• B)new trade
• C)absolute advantage
• D)traded intermediate goods

---

Definitions:

Absolute Threshold

The minimum intensity of stimulus that is required for a person to detect its presence 50% of the time.

Light Bulbs

Devices that produce light from electricity, consisting of a filament that glows when heated by an electric current.

Top-Down Processing

A perceptual process where an individual's expectations or prior knowledge guide the interpretation of sensory information.

Wrong Idea

An incorrect or misguided thought, belief, or assumption.