revision

Which hypothesis is not from “Absolute advantage theory” of Adam Smith

• There are 2 countries producing 2 goods

• Trade is completely free

• Labor is the only factor of production

• There is regulatory policy from the government

Who is the father of the comparative advantage theory?

• Adam Smith

• D Ricardo

• P Samuelson

• W Petty

According to the Absolute Advantage Theory of Adam Smith, in internation exchange:

(advantageous: có lợi)

• All countries are beneficial

• A country with higher amount of science-technology is more advantageous than the other

• All countries are beneficial if they focus on specializing and exporting the goods with absolute advantage.

  (specializing: chuyen mon hoa)

• If a country is disadvantageous in producing 2 goods comparing to the other country, it should not join the international exchange

According to the comparative advantage theory of D Ricardo, in international exchange:

• all countries are beneficial

• a country with higher amount of science - technology is more advantageous than the other

• all countries are beneficial if they focus on specializing and exporting the goods with absolute advantage

• if a country is disadvantageous in producing 2 goods comparing to the other country, it should not join the international exchange

Is it possible to say "comparative advantage theory is extended absolute advantage theory?"

(.....la ly thuyet loi the tuyet doi mo rong khong?)

• Not possible as the two theories are different in nature.

• Possible as comparative advantage theory improve the limitation of the absolute advantage theory

• Possible as comparative advantage theory consider interational exchange

• Not possible as the 2 authors did their research in different times and contexts

Which statement is correct?

• comparative advantage of David Ricardo is the inheritance and development of Absolute advantage theory of Adam Smith

• If a country has disadvantage in all goods, they can not take part in the international trading

• The international trade based on absolute advantage theory does not change the total amount of goods in the world

• According to Adam Smith, price is not completely decided by price

In absolute advantage theory, Adam Smith assumed that: (cho rang)

• in international trading, all countries are beneficial

• in international trading, countries are beneficial only if they trade in a certain ratio (1 ty le nhat dinh)

• in international trading, countries are beneficial if they focus on specializing and exporting goods with absolute advantage

• b& c

Which of the following statements is true about specialization and trade?

• A country should specialize in and export the good for which it has absolute  advantage.

• A country should specialize in and import the good for which it has comparative advantage.

• A country should specialize in and import the good for which it has absolute  advantage.

• A country should specialize in and export the good for which they have comparative advantage.