International Trade Is Based on the Notion That

question 207

Multiple Choice

International trade is based on the notion that:

• A) Different currencies are an obstacle to international trade
• B) Goods are more mobile internationally than are resources
• C) Resources are more mobile internationally than are goods
• D) A country's exports should always exceed its imports

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Definitions:

Equilibrium Conditions

Refers to the state where market supply and demand balance each other, and as a result, prices become stable.

Clear All Markets

A theoretical situation where supply equals demand in all markets, leading to economic equilibrium.

Efficiency

The ability to accomplish a task or a set of tasks with the minimum expenditure of time and resources.

Equity

Fairness or justice in the way people are treated and decisions are made, often relating to economic policies or distribution of resources.