Which of the following describes resource mobility as assumed by the classical theories of international trade?
A) It is the assumption that a resource used in producing a product for one industry can be shifted and put to use in another industry.
B) It is the notion that countries should share their resources freely with other countries.
C) It is the expectation that all resource-based transactions will have no foreign exchange complications.
D) It is the assertion that all resources of a nation should be directly controlled by the government.

Question

Which of the following describes resource mobility as assumed by the classical theories of international trade? 
A) It is the assumption that a resource used in producing a product for one industry can be shifted and put to use in another industry. 
B) It is the notion that countries should share their resources freely with other countries. 
C) It is the expectation that all resource-based transactions will have no foreign exchange complications. 
D) It is the assertion that all resources of a nation should be directly controlled by the government.

Quizplus · Accepted Answer

Resource mobility is the assumption that a resource used in producing a product for one industry can be shifted and put to use in another industry. This assumption allows for more efficient allocation of resources among industries within a country and across countries in international trade.

Which of the Following Describes Resource Mobility as Assumed by the Classical