QUIZ 2

It is the concept of exchanging goods and services between two people or entities

He is recognized as the founder of modern economics; hence, considered as the father of economics

An advantage that can produce a good or service better, faster, more efficiently, at a greater volume, and with fewer resources than others.

mercantilism is also known as?

The transition from local economies to national economies, from feudalism to capitalism, and from a rudimentary trade to a globally larger international trade.

A theory that is based on a country's production factors-land, labor, and capital; hence, the theory is also called the factor proportions theory or the resources and trade theory.

An advantage which means a producer can produce a good or service at a lower opportunity cost than others.

Comparative Advantage is to opportunity cost, while Absolute Advantage is to?

These theories are useful and can help with international trade by helping a business determine the right country to expand into and make goods more efficiently than other firms.

• Modern theories

• Adam Smith Theory

• Classical theories

• David Ricardo Theory

All of the following are good or services that is produce by absolute advantage except?

• Greater quantity for the same cost

• Same quantity at a higher cost

• Same quantity of product/service for a lesser quantity of inputs

• Lower marginal cost than other, producers without compromising the quality