Match the following pairs: 1. Labour theory of value; 2. Concept of opportunity cost; 3. Differences in factor prices; 4. Community indifference curve -- with I. Heckscher-Ohlin theory; II. Offer curve; III. Ricardian theory; IV. Modern theory.
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Theories of international trade has come up 151 times in 6 exams since 2006.
This question is on Absolute and comparative advantage, part of Theories of international trade in International Economics.
Why countries trade: producing more cheaply in absolute terms, or at lower opportunity cost.
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Question from the CUET-PG 2018 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.