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Sources of Comparative Advantage

Difference in environmental standards or other government regulations among nations ?

Economics Mcqs, Sources of Comparative Advantage /
Difference in environmental standards or other government regulations among nations ?

A. have no impact on patterns of international trade
B. have tended to make U.S steel companies more competitive internationally
C. can affect production costs and thus alter comparative advantages and trade patterns
D. have been eliminated by the nations participating in NAFTA

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Economics Mcqs, Sources of Comparative Advantage

Intra-industry trade theory ?

Economics Mcqs, Sources of Comparative Advantage /
Intra-industry trade theory ?

A. Explains why the United States might export autos and import clothing
B. Explains why the United States might export and import differentiated versions of the same product such as different types of autos
C. Assumes that transport costs are very low or do not exist
D. ignores seasonal considerations for agricultural goods

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Economics Mcqs, Sources of Comparative Advantage

Should international transportation costs decrease the effect on international trade would include a (an) ?

Economics Mcqs, Sources of Comparative Advantage /
Should international transportation costs decrease the effect on international trade would include a (an) ?

A. increase in the volume of trade
B. Smaller gain from trade
C. Decline in the income of home producers
D. Decrease in the level of specialization in production

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Economics Mcqs, Sources of Comparative Advantage

According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?

Economics Mcqs, Sources of Comparative Advantage /
According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?

A. similar endowments of natural resources
B. similar levels of technology
C. similar per-capita incomes
D. similar wage levels

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Economics Mcqs, Sources of Comparative Advantage

According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ?

Economics Mcqs, Sources of Comparative Advantage /
According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ?

A. Devote excessive amounts of resources to agricultural production
B. Devote insufficient amounts of resources to agricultural production
C. Export products that are land-intensive
D. Import products that are land-intensive

According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ? Read More »

Economics Mcqs, Sources of Comparative Advantage

The theory of overlapping demand predicts that trade in manufactured goods is unimportant for countries with very different ?

Economics Mcqs, Sources of Comparative Advantage /
The theory of overlapg demand predicts that trade in manufactured goods is unimportant for countries with very different ?

A. Tastes and preferences
B. Expectations of future interest rate levels
C. Per-capita income levels
D. Labor productivities

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Economics Mcqs, Sources of Comparative Advantage

Boeing aircraft company was able to over its production costs of the first – jumbo jetll in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates ?

Economics Mcqs, Sources of Comparative Advantage /
Boeing aircraft company was able to over its production costs of the first – jumbo jetll in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates ?

A. How economies of scale make possible a larger variety of products in international trade
B. A transfer of wealth from domestic consumer to domestic producer as the result of trade
C. How a natural monopoly is forced to behave more competitively with international trade
D. How a natural monopoly is forced to behave less competitively with international trade

Boeing aircraft company was able to over its production costs of the first – jumbo jetll in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates ? Read More »

Economics Mcqs, Sources of Comparative Advantage

The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries ?

Economics Mcqs, Sources of Comparative Advantage /
The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries ?

A. Economies of large-scale production
B. Relative abundance of various resources
C. Relative costs of labor
D. Research and development expenditures

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Economics Mcqs, Sources of Comparative Advantage