Ecs3702 Assignment 1 Questions And Answers 100% Verified A+ Guaranteed

The mercantilists believed that a country's economic welfare depends on... {Ans: Achieving a favourable trade balance}Which of the following policies did the mercantilists advocate to achieve their objective? {Ans: Imposing tariffs, quotes, and other trade barriers}According to the law of comparative advantage, a country should specialise in producing a good or service in which it has a comparative advantage. Comparative advantage is determined by... {Ans: Opportunity cost of production}An improvement in a nation's terms of trade means that... {Ans: The prices of its exports have increased more than the prices of its imports.}International trade theory refers to... {Ans: i) the microeconomic aspects of international trade ii) the macroeconomic aspects of international trade iii) open economy macroeconomics}According to the mercantilists, trade was considered a... {Ans: Zero-sum game}