Marketing Mângement

According to Mercantilist theory, a nations wealth is measured by:

• Labor productivity

• Accumulated gold and silver
  
  

• Total national output
  
  

• Export volume

Mercantilism views international trade as:

• A mutually beneficial activity
  
  

• A zero-sum game

• An exchange based on productivity
  
  

• Efficient resource allocation
  
  

Who introduced the theory of absolute advantage?

• David Ricardo

• Adam Smith
  
  

• Haberler
  
  

• John Maynard Keynes

According to the absolute advantage theory, a country should:

• Produce all goods by itself
  
  

• Specialize in goods with lower production cost than other countries
  
  

• Only import what it cannot produce

• Impose high tariffs on imports
  
  

Who developed the theory of comparative advantage?

• Karl Marx
  
  

• Adam Smith

• David Ricardo
  
  

• Keynes

According to Ricardo, a country has a comparative advantage when:

• It has superior technology

• It has lower opportunity cost

• It has more capital
  
  

• It has a large consumer market
  
  

Haberler’s theory measures trade advantages using:

• Labor productivity

• Import-export ratios
  
  

• Opportunity cost
  
  

• Per capita income

What is one innovation of Haberler’s theory compared to Ricardo’s?

• Use of gold as measurement

• Focus on technology
  
  

• Replacing labor cost with opportunity cost

• Eliminating the role of government
  
  

Which of the following is true about comparative advantage theory?

• Countries without absolute advantage can still trade

• Self-sufficiency is always optimal

• Trade always causes imbalance

• Weaker industries should be protected
  
  

Opportunity cost is:

• Actual money spent

• Tariff cost
  
  

• The value of the best alternative forgone

• Gross domestic product