The Trade Theory That Says a Country Should Export More

question 66

Multiple Choice

The trade theory that says a country should export more than it imports is known as ________.

• A)mercantilism
• B)absolute advantage
• C)comparative advantage
• D)import substitution

---

Definitions:

Standardized Scoring

A process of quantifying test or assessment results according to prescribed norms and procedures to ensure comparability.

Construct Validity

The validity of a test assuming a specific theoretical framework that relates the item the test measures, often rather abstract, to some other item that is more easily assessed. If the two sets of measurements correlate, the test is said to have construct validity.

Theoretical Framework

A foundational structure used to outline possible courses of action or to present a preferred approach to an idea or thought, often used in academic research.

Test Content

The material, topics, or subject matter that is covered by a test, reflecting what the test is designed to measure.