Economics

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6. The idea that countries should produce and sell goods that they produce most effectively
and efficiently, and buy goods that other countries produce most effectively and efficiently,
is known as
A. absolute advantage theory. C. efficiency balanced trade.
B. free trade. D. comparative advantage theory.


7. These days, the leading commercial firms are found in the _______ sector.
A. manufacturing C. service
B. agricultural D. government


8. In global trade, when the difference between money coming into a country from exports
and money leaving a country due to imports or money flows from other factors is
known as the
A. balance of payments. C. balance of trade.
B. trade offset. D. trade deficit.


9. Which statement best characterizes Adam Smith’s concept of the “invisible hand”?
A. Those who don’t work shouldn’t eat.
B. The quest for personal gain works for the common good.
C. When governments fail to regulate, greed conquers all.
D. Markets create money, and money creates demand.


10. Calendula, Inc. sells its herbal teas at a lower price in foreign countries than those
charged to consumers in Calendula’s home nation. In global trade, this is known as
A. freeloading. C. brand infringement.
B. depreciation. D. dumping

my answers are:

6.C
7.C
8.C or D but i think its D
9.B
10.B

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