International Trade quizzes
Why countries trade and how specialization benefits them, even when one country can produce everything more efficiently.
1 quiz
50 questions
Quizzes in this topic
Try a question
From International Trade: Why Even the Best Should Import
In the Ricardian model, how can a country with lower productivity in every good still export successfully?
- It exports only high-priced luxuries
- Its lower wages offset lower productivity
- Its government bans competing imports
Show the answer
Answer: Its lower wages offset lower productivity
Wages reflect productivity, so a less productive country's lower wages make its goods competitive where its disadvantage is smallest.
A few questions at a time, before your apps
BrainTok asks a few questions from quizzes like these before the apps you choose open, so your screen time turns into learning. For iPhone.
Join the beta