15.A country needs absolute rather than comparative advantages to benefit from international trade.

True

False

16.The costs of pursuing one alternative in terms of the forgone revenues of pursuing another alternative are known as

A) Forgone costs

B) Sunk costs

C) Alternative costs

D) Opportunity costs

17.Adam Smith proposed the theory of absolute advantage.

True

False

18.Which of the following theory is the basis of modern-day protectionism?

A) The theory of absolute advantage

B) The theory of comparative advantage

C) Mercantilism

D) Heckscher-Ohlin theory