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Commerce · Q248

Business Environment and International Business

Graduate and Post Graduate · Commerce · question 248

Q248

Match the following. List-I (Theories of International Trade) List-II (Features) a. Theory of reciprocal demand 1. Through specialisation, countries could increase their efficiency. b. Theory of absolute advantage 2. It emphasises the demand side as well. c. Theory of mercantilism 3. It assume that there is only one factor of production. d. Theory of comparative cost 4. Countries should export more than they import.

Match the following.
List-I (Theories of International Trade) List-II (Features)
a. Theory of reciprocal demand 1. Through specialisation, countries could increase their efficiency.
b. Theory of absolute advantage 2. It emphasises the demand side as well.
c. Theory of mercantilism 3. It assume that there is only one factor of production.
d. Theory of comparative cost 4. Countries should export more than they import.
A.
a-4, b-3, c-2, d-1
B.
a-2, b-1, c-4, d-3
Answer
C.
a-3, b-4, c-1, d-2
D.
a-2, b-3, c-4, d-1

Answer: Option B

Solution

Answer: Option B
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