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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Definitions:

Mechanistic Organization

A highly structured and efficient organization form, characterized by rigid hierarchies, clear roles, and centralized decision-making.

Status Quo

The current status or circumstances, typically used to denote a scenario that has not altered.

Organization Design

The process of shaping an organization's structure and roles to align with its strategy, goals, and culture to enhance efficiency and effectiveness.

Organizational Resistance

Refers to the pushback or opposition by employees or stakeholders within an organization against changes or new policies introduced by management.