Question 1

Holmes and Schmitz develop an interesting variation of the standard Schumpeterian creative destruction model that:

Accepted Answer

A)  shows innovation is more likely in a protected environment where infant industries flourish. 
B)  permits the technological leader to obstruct new innovation. 
C)  shows how creation can occur without destruction. 
D)  shows why economic growth does not require technological progress. 
A)  shows innovation is more likely in a protected environment where infant industries flourish. 
B)  permits the technological leader to obstruct new innovation. 
C)  shows how creation can occur without destruction. 
D)  shows why economic growth does not require technological progress. B

Question 2

How does economic integration (e.g. the combining of two economies into one) impact the number of innovations per year in the Schumpeterian R&D model?

Accepted Answer

A)  Innovations increases. 
B)  Innovation slows down. 
C)  The rate of innovation does not change. 
D)  None of the above. 
A)  Innovations increases. 
B)  Innovation slows down. 
C)  The rate of innovation does not change. 
D)  None of the above. A

Question 3

Holmes and Schmitz (1995) model suggests that the relationship between international trade and domestic manufactures efforts to obstruct technological developments is:

Accepted Answer

A)  positive. 
B)  negative. 
C)  insignificant. 
A)  positive. 
B)  negative. 
C)  insignificant. B

Question 4

Applying Vernon's product life cycle model from a developing country perspective, when a product reaches the status of a standardized product, imports of the product:

Accepted Answer

A)  increase. 
B)  decrease. 
C)  remain the same. 
A)  increase. 
B)  decrease. 
C)  remain the same.

Question 5

The Kremer (1993) model of growth suggests that larger countries grow:

Accepted Answer

A)  more slowly than smaller countries. 
B)  faster than smaller countries. 
C)  at the same rate as smaller countries. 
A)  more slowly than smaller countries. 
B)  faster than smaller countries. 
C)  at the same rate as smaller countries.

Question 6

When studying innovation in information technology (IT), economists have found that:

Accepted Answer

A)  the users and innovators of IT shared the total gains from innovation about equally. 
B)  the IT innovators captured the greatest share of the total gains from innovation. 
C)  the users of IT captured the greatest share of the total gains from innovation. 
D)  there were no real gains from innovation in IT. 
A)  the users and innovators of IT shared the total gains from innovation about equally. 
B)  the IT innovators captured the greatest share of the total gains from innovation. 
C)  the users of IT captured the greatest share of the total gains from innovation. 
D)  there were no real gains from innovation in IT.

Question 7

Evidence presented by Hipple (1990), Zeile (1997), and Mataloni (2000) suggests nearly 80 percent of all goods traded across borders originate or terminate, or both, with ___.

Accepted Answer

A)  government agencies. 
B)  inter-firm trade. 
C)  multinational firms. 
D)  OECD countries. 
A)  government agencies. 
B)  inter-firm trade. 
C)  multinational firms. 
D)  OECD countries.

Question 8

The Schumpeterian R&D model suggests that international trade affects economic growth through the variables:

Accepted Answer

A)  for depreciation δ. 
B)  for innovative efficiency β. 
C)  for the level of competition C. 
D)  All of the above. 
E)  None of the above. 
A)  for depreciation δ. 
B)  for innovative efficiency β. 
C)  for the level of competition C. 
D)  All of the above. 
E)  None of the above.

Question 9

Applying Vernon's product life cycle model from a developed country perspective, when a product reaches the status of a standardized product, imports of the product:

Accepted Answer

A)  increase. 
B)  decrease. 
C)  remain the same. 
A)  increase. 
B)  decrease. 
C)  remain the same.

Question 10

Recently, there has been a trend:

Accepted Answer

A)  away from small countries to large countries. 
B)  away from large countries to small countries. 
C)  toward large countries with open economies. 
D)  toward small countries with economies closed to international trade. 
A)  away from small countries to large countries. 
B)  away from large countries to small countries. 
C)  toward large countries with open economies. 
D)  toward small countries with economies closed to international trade.

Question 11

The Schumpeterian R&D model of technological progress suggests that, all other things equal:

Accepted Answer

A)  large countries grow faster than small countries only if they are open to free trade. 
B)  small countries grow faster than large countries regardless of their trade policies. 
C)  large countries grow faster than small countries. 
D)  large countries will always grow slower than small countries. 
A)  large countries grow faster than small countries only if they are open to free trade. 
B)  small countries grow faster than large countries regardless of their trade policies. 
C)  large countries grow faster than small countries. 
D)  large countries will always grow slower than small countries.

Question 12

Studies of the spread of technology among countries have shown that:

Accepted Answer

A)  technological transfers are positively related to the volume of international trade. 
B)  small economies are less dependent on technology transfers for economic growth than large countries. 
C)  geographic proximity is more important for transfer of technology than international trade. 
D)  foreign R&D activity has no effect on a country's rate of technological progress. 
A)  technological transfers are positively related to the volume of international trade. 
B)  small economies are less dependent on technology transfers for economic growth than large countries. 
C)  geographic proximity is more important for transfer of technology than international trade. 
D)  foreign R&D activity has no effect on a country's rate of technological progress.

Question 13

Examples of Vernon's product cycle are:

Accepted Answer

A)  clothing and shoes in the 20th century. 
B)  gold mining after World War II. 
C)  farming in the 19th century. 
D)  All of the above. 
A)  clothing and shoes in the 20th century. 
B)  gold mining after World War II. 
C)  farming in the 19th century. 
D)  All of the above.

Question 14

An increase in competition from economic integration may create an increase in price competition as well as innovative competition. What is the impact on the demand curve as countries face more rigorous price competition from trade?

Accepted Answer

A)  the demand curve becomes more elastic. 
B)  the demand curve becomes more inelastic. 
C)  the demand curve shifts in (to the left) the demand curve is not affected. 
A)  the demand curve becomes more elastic. 
B)  the demand curve becomes more inelastic. 
C)  the demand curve shifts in (to the left) the demand curve is not affected.

Question 15

Lee and McKenzie (1993) point out that:

Accepted Answer

A)  innovators have no incentive to try to prevent others from innovating. 
B)  earlier innovators tend to collaborate with future innovators to spur innovation. 
C)  earlier innovators often seek to protect themselves from new innovations. 
D)  there is no economic incentive for protectionism. 
A)  innovators have no incentive to try to prevent others from innovating. 
B)  earlier innovators tend to collaborate with future innovators to spur innovation. 
C)  earlier innovators often seek to protect themselves from new innovations. 
D)  there is no economic incentive for protectionism.

Question 16

How does economic integration (e.g. the combining of two economies into one) impact the cost of innovation curve (COI) when there is also a concurrent geographic clustering (agglomeration) of R&D activity in one country?

Accepted Answer

A)  the cost of innovation curve shift up (to the left) and becomes steeper. 
B)  The cost of innovation curve shifts up (to the left) and become flatter. 
C)  The cost of innovation curve shifts down (to the right) and becomes steeper. 
D)  The cost of innovation curve shifts down (to the right) and becomes flatter. 
A)  the cost of innovation curve shift up (to the left) and becomes steeper. 
B)  The cost of innovation curve shifts up (to the left) and become flatter. 
C)  The cost of innovation curve shifts down (to the right) and becomes steeper. 
D)  The cost of innovation curve shifts down (to the right) and becomes flatter.

Question 17

The Kremer (1993) model of growth suggests that education positively influences __.

Accepted Answer

A)  income levels. 
B)  population growth. 
C)  technological progress. 
D)  international trade. 
A)  income levels. 
B)  population growth. 
C)  technological progress. 
D)  international trade.

Question 18

According to the Schumpeterian model of creative destruction, which of the following statements is true:

Accepted Answer

A)  There can be no creation without destruction. 
B)  There can be no destruction without creation. 
C)  Creation can avoid destruction when resources are efficiently managed. 
D)  All of the above. 
E)  None of the above. 
A)  There can be no creation without destruction. 
B)  There can be no destruction without creation. 
C)  Creation can avoid destruction when resources are efficiently managed. 
D)  All of the above. 
E)  None of the above.

Question 19

The importance of the size of nations for economic growth in today's global economy might best be summarized as follows:

Accepted Answer

A)  Since the economy is so global now, the costs of being small have gone down. 
B)  Because people are ones who innovate, population size matters more than ever for growth. 
C)  Since international trade spreads technology, the size of the world's population does not matter. 
D)  Small countries would be well-advised to avoid too much international trade for fear of having their best ideas stolen by others. 
A)  Since the economy is so global now, the costs of being small have gone down. 
B)  Because people are ones who innovate, population size matters more than ever for growth. 
C)  Since international trade spreads technology, the size of the world's population does not matter. 
D)  Small countries would be well-advised to avoid too much international trade for fear of having their best ideas stolen by others.

Question 20

The Schumpeterian R&D model suggests that international trade affects economic growth through the variables:

Accepted Answer

A)  for profit π. 
B)  for innovative efficiency β. 
C)  for the supply of resources R. 
D)  All of the above. 
E)  None of the above. 
A)  for profit π. 
B)  for innovative efficiency β. 
C)  for the supply of resources R. 
D)  All of the above. 
E)  None of the above.

Holmes and Schmitz develop an interesting variation of the standard Schumpeterian creative destruction model that:

How does economic integration (e.g. the combining of two economies into one) impact the number of innovations per year in the Schumpeterian R&D model?

Holmes and Schmitz (1995) model suggests that the relationship between international trade and domestic manufactures efforts to obstruct technological developments is:

Applying Vernon's product life cycle model from a developing country perspective, when a product reaches the status of a standardized product, imports of the product:

The Kremer (1993) model of growth suggests that larger countries grow:

When studying innovation in information technology (IT), economists have found that:

Evidence presented by Hipple (1990), Zeile (1997), and Mataloni (2000) suggests nearly 80 percent of all goods traded across borders originate or terminate, or both, with ___.

The Schumpeterian R&D model suggests that international trade affects economic growth through the variables:

Applying Vernon's product life cycle model from a developed country perspective, when a product reaches the status of a standardized product, imports of the product:

Recently, there has been a trend:

The Schumpeterian R&D model of technological progress suggests that, all other things equal:

Studies of the spread of technology among countries have shown that:

Examples of Vernon's product cycle are:

An increase in competition from economic integration may create an increase in price competition as well as innovative competition. What is the impact on the demand curve as countries face more rigorous price competition from trade?

Lee and McKenzie (1993) point out that:

How does economic integration (e.g. the combining of two economies into one) impact the cost of innovation curve (COI) when there is also a concurrent geographic clustering (agglomeration) of R&D activity in one country?

The Kremer (1993) model of growth suggests that education positively influences __.

According to the Schumpeterian model of creative destruction, which of the following statements is true:

The importance of the size of nations for economic growth in today's global economy might best be summarized as follows:

The Schumpeterian R&D model suggests that international trade affects economic growth through the variables:

The Welfare Gains From Trade

Trade and Growth: the Empirical Evidence

International Trade and Factor Accumulation

Overcoming Diminishing Returns: Technology As an Externality

Technological Progress As Creative Destruction

Multi-Sector Models and International Trade

International Trade and Technology Transfers

Restating the Case for Free Trade

Filters

Exam 6: International Trade and Technological Progress

Holmes and Schmitz develop an interesting variation of the standard Schumpeterian creative destruction model that:

How does economic integration (e.g. the combining of two economies into one) impact the number of innovations per year in the Schumpeterian R&D model?

Holmes and Schmitz (1995) model suggests that the relationship between international trade and domestic manufactures efforts to obstruct technological developments is:

Applying Vernon's product life cycle model from a developing country perspective, when a product reaches the status of a standardized product, imports of the product:

The Kremer (1993) model of growth suggests that larger countries grow:

When studying innovation in information technology (IT), economists have found that:

Evidence presented by Hipple (1990), Zeile (1997), and Mataloni (2000) suggests nearly 80 percent of all goods traded across borders originate or terminate, or both, with ___.

The Schumpeterian R&D model suggests that international trade affects economic growth through the variables:

Applying Vernon's product life cycle model from a developed country perspective, when a product reaches the status of a standardized product, imports of the product:

Recently, there has been a trend:

The Schumpeterian R&D model of technological progress suggests that, all other things equal:

Studies of the spread of technology among countries have shown that:

Examples of Vernon's product cycle are:

An increase in competition from economic integration may create an increase in price competition as well as innovative competition. What is the impact on the demand curve as countries face more rigorous price competition from trade?

Lee and McKenzie (1993) point out that:

How does economic integration (e.g. the combining of two economies into one) impact the cost of innovation curve (COI) when there is also a concurrent geographic clustering (agglomeration) of R&D activity in one country?

The Kremer (1993) model of growth suggests that education positively influences __.

According to the Schumpeterian model of creative destruction, which of the following statements is true:

The importance of the size of nations for economic growth in today's global economy might best be summarized as follows:

The Schumpeterian R&D model suggests that international trade affects economic growth through the variables:

The Welfare Gains From Trade

Trade and Growth: the Empirical Evidence

International Trade and Factor Accumulation

Overcoming Diminishing Returns: Technology As an Externality

Technological Progress As Creative Destruction

Multi-Sector Models and International Trade

International Trade and Technology Transfers

Restating the Case for Free Trade

Filters