The Pattern of Trade Is Determined by

question 17

Multiple Choice

The pattern of trade is determined by

• A) both comparative advantage and consumer preferences.
• B) only comparative advantage.
• C) both absolute advantage and comparative advantage.
• D) both absolute advantage and consumer preferences.
• E) only consumer preferences.

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Definitions:

Productivity Variables

The three factors critical to productivity improvement—labour, capital, and management.

Labour

The human effort, whether physical or mental, contributed towards the production of goods or services in an economy.

Capital

Financial assets or resources that individuals or organizations use to fund their operations and invest in their businesses.