Questions to self-checking:

1. Describe the main stages of trade theory evolution;
2. Explain the principle of absolute advantage. Give an example.
3. Explain the principle of comparative advantage. Give an example.
4. What are opportunity costs? Link it with comparative advantage.
5. Distinguish the main differences between general and partial equilibrium.
6. What are the main assumptions of Heckscher-Ohlin model?
7. What is the essence of Heckscher-Ohlin theorem?
8. What is the essence of Leontief’s paradox?
9. What is marginal rate of substitution? Give an example.
10. What is marginal product. Give an example of MP.