If an Economist Develops a Theory About International Trade Based

question 165

Multiple Choice

If an economist develops a theory about international trade based on the assumption that there are only two countries and two goods, what is most likely?

• A) The theory can be useful only in situations involving two countries and two goods.
• B) It is a total waste of time, since the actual world has many countries trading many goods.
• C) The theory can be useful in helping economists understand the complex world of international trade involving many countries and many goods.
• D) The theory can be useful in the classroom but has no use in the real world.

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