Question 1

Relaxing the assumptions on which the Heckscher-Ohlin theory rests:

Accepted Answer

A) leads to rejection of the theory 
B) leaves the theory unaffected 
C) requires complementary trade theories 
D) any of the above. 
A) leads to rejection of the theory 
B) leaves the theory unaffected 
C) requires complementary trade theories 
D) any of the above. C

Question 2

The Heckscher-Ohlin and new trade theories explains most of the trade:

Accepted Answer

A) among advanced countries 
B) between developed and developing countries 
C) in industrial goods 
D) all of the above 
A) among advanced countries 
B) between developed and developing countries 
C) in industrial goods 
D) all of the above D

Question 3

A great deal of international trade:

Accepted Answer

A) is intra-industry trade 
B) involves differentiated products 
C) is based on monopolistic competition 
D) all of the above 
A) is intra-industry trade 
B) involves differentiated products 
C) is based on monopolistic competition 
D) all of the above D

Question 4

Transport costs can be analyzed:

Accepted Answer

A) with demand and supply curves 
B) production frontiers 
C) offer curves 
D) all of the above 
A) with demand and supply curves 
B) production frontiers 
C) offer curves 
D) all of the above

Question 5

Which of the following assumptions of the Heckscher-Ohlin theory,when relaxed,leave the theory unaffected?

Accepted Answer

A) Two nations,two commodities,and two factors 
B) both nations use the same technology 
C) the same commodity is L-intensive in both nations 
D) all of the above 
A) Two nations,two commodities,and two factors 
B) both nations use the same technology 
C) the same commodity is L-intensive in both nations 
D) all of the above

Question 6

Which of the following statements is true with regard to the product-cycle theory?

Accepted Answer

A) It depends on differences in technological changes over time among countries 
B) it depends on the opening and the closing of technological gaps among countries 
C) it postulates that industrial countries export more advanced products to less advanced countries 
D) all of the above 
A) It depends on differences in technological changes over time among countries 
B) it depends on the opening and the closing of technological gaps among countries 
C) it postulates that industrial countries export more advanced products to less advanced countries 
D) all of the above

Question 7

Which of the following assumptions of the Heckscher-Ohlin theory,when relaxed, require new trade theories?

Accepted Answer

A) Economies of scale 
B) incomplete specialization 
C) similar tastes in both nations 
D) the existence of transportation costs 
A) Economies of scale 
B) incomplete specialization 
C) similar tastes in both nations 
D) the existence of transportation costs

Question 8

International trade can be based on economies of scale even if both nations have identical:

Accepted Answer

A) factor endowments 
B) tastes 
C) technology 
D) all of the above 
A) factor endowments 
B) tastes 
C) technology 
D) all of the above

Question 9

If a nation exports twice as much of a differentiated product that it imports,its intra- industry (T)index is equal to:

Accepted Answer

A) 1.00 
B) 0.75 
C) 0.50 
D) 0.25 
A) 1.00 
B) 0.75 
C) 0.50 
D) 0.25

Question 10

Intra-industry trade takes place:

Accepted Answer

A) because products are homogeneous 
B) in order to take advantage of economies of scale 
C) because perfect competition is the prevalent form of market organization 
D) all of the above 
A) because products are homogeneous 
B) in order to take advantage of economies of scale 
C) because perfect competition is the prevalent form of market organization 
D) all of the above

Question 11

Trade based on technological gaps is closely related to:

Accepted Answer

A) the H-O theory 
B) the product-cycle theory 
C) Linder's theory 
D) all of the above 
A) the H-O theory 
B) the product-cycle theory 
C) Linder's theory 
D) all of the above

Question 12

The share of transport costs will fall less heavily on the nation:

Accepted Answer

A) with the more elastic demand and supply of the traded commodity 
B) with the less elastic demand and supply of the traded commodity 
C) exporting agricultural products 
D) with the largest domestic market 
A) with the more elastic demand and supply of the traded commodity 
B) with the less elastic demand and supply of the traded commodity 
C) exporting agricultural products 
D) with the largest domestic market

Question 13

The theory that a nation exports those products for which a large domestic market exists was advanced by:

Accepted Answer

A) Linder 
B) Vernon 
C) Leontief 
D) Ohlin 
A) Linder 
B) Vernon 
C) Leontief 
D) Ohlin

Relaxing the assumptions on which the Heckscher-Ohlin theory rests:

The Heckscher-Ohlin and new trade theories explains most of the trade:

A great deal of international trade:

Transport costs can be analyzed:

Which of the following assumptions of the Heckscher-Ohlin theory,when relaxed,leave the theory unaffected?

Which of the following statements is true with regard to the product-cycle theory?

Which of the following assumptions of the Heckscher-Ohlin theory,when relaxed, require new trade theories?

International trade can be based on economies of scale even if both nations have identical:

If a nation exports twice as much of a differentiated product that it imports,its intra- industry (T)index is equal to:

Intra-industry trade takes place:

Trade based on technological gaps is closely related to:

The share of transport costs will fall less heavily on the nation:

The theory that a nation exports those products for which a large domestic market exists was advanced by:

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, Offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economic Growth and International Trade

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

Open-Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past, Present, and Future

Filters

Exam 6: Economies of Scale, Imperfect Competition, and International Trade

Relaxing the assumptions on which the Heckscher-Ohlin theory rests:

The Heckscher-Ohlin and new trade theories explains most of the trade:

A great deal of international trade:

Transport costs can be analyzed:

Which of the following assumptions of the Heckscher-Ohlin theory,when relaxed,leave the theory unaffected?

Which of the following statements is true with regard to the product-cycle theory?

Which of the following assumptions of the Heckscher-Ohlin theory,when relaxed, require new trade theories?

International trade can be based on economies of scale even if both nations have identical:

If a nation exports twice as much of a differentiated product that it imports,its intra- industry (T)index is equal to:

Intra-industry trade takes place:

Trade based on technological gaps is closely related to:

The share of transport costs will fall less heavily on the nation:

The theory that a nation exports those products for which a large domestic market exists was advanced by:

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, Offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economic Growth and International Trade

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

Open-Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past, Present, and Future

Filters