Question 1

Which of the following is an example of intra-industry trade?

Accepted Answer

A) Japan and the United States both import and export cars. 
B) The United States sends high technology goods to China and imports textiles and clothing. 
C) The United States produces lettuce in the summer and imports lettuce from Chile in the winter. 
D) The United States ships wheat to Africa. 
A) Japan and the United States both import and export cars. 
B) The United States sends high technology goods to China and imports textiles and clothing. 
C) The United States produces lettuce in the summer and imports lettuce from Chile in the winter. 
D) The United States ships wheat to Africa.

Question 2

A footloose industry is one in which the product:

Accepted Answer

A) gains weight in processing 
B) loses weight in processing 
C) does not change weight in processing 
D) could increase,decrease,or have no change in weight in processing. 
A) gains weight in processing 
B) loses weight in processing 
C) does not change weight in processing 
D) could increase,decrease,or have no change in weight in processing.

Question 3

Transport costs:

Accepted Answer

A) increase the price in the importing country. 
B) increase the price in the exporting country. 
C) prevent international trade. 
D) increase international trade. 
A) increase the price in the importing country. 
B) increase the price in the exporting country. 
C) prevent international trade. 
D) increase international trade.

Question 4

A developed and developing nation are most likely to engage in

Accepted Answer

A) inter-industry trade based on economies of scale 
B) intra-industry trade based on economies of scale 
C) inter-industry trade based on comparative advantage 
D) intra-industry trade based on comparative advantage 
A) inter-industry trade based on economies of scale 
B) intra-industry trade based on economies of scale 
C) inter-industry trade based on comparative advantage 
D) intra-industry trade based on comparative advantage

Question 5

Which of the following statements is not 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) It corresponds with the predictions of the Hecksher-Ohlin theorem. 
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) It corresponds with the predictions of the Hecksher-Ohlin theorem.

Question 6

The Grubel and Lloyd index measures the magnitude of a nation's

Accepted Answer

A) product life cycle 
B) comparative advantage 
C) economies of scale 
D) intra-industry trade 
A) product life cycle 
B) comparative advantage 
C) economies of scale 
D) intra-industry trade

Question 7

a)Explain why the Heckscher-Ohlin trade model needs to be extended.
b)Indicate in what important ways the Heckscher-Ohlin trade model can be extended.
c)Explain what is meant by differentiated products and intra-industry trade.

Accepted Answer

a)The Heckscher-Ohlin trade model needs

Question 8

When a nation has increasing returns to scale,the shape of its production possibility frontier is

Accepted Answer

A) linear 
B) concave to the origin 
C) convex to the origin 
D) discontinuous 
A) linear 
B) concave to the origin 
C) convex to the origin 
D) discontinuous

Question 9

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 10

Increasing returns to scale means that

Accepted Answer

A) doubling all inputs leads to a more than proportional increase in output. 
B) doubling all inputs leads to a proportional increase in output. 
C) doubling all inputs leads to a less than proportional increase in output. 
D) doubling all inputs leads to a decrease in output. 
A) doubling all inputs leads to a more than proportional increase in output. 
B) doubling all inputs leads to a proportional increase in output. 
C) doubling all inputs leads to a less than proportional increase in output. 
D) doubling all inputs leads to a decrease in output.

Which of the following is an example of intra-industry trade?

A footloose industry is one in which the product:

Transport costs:

A developed and developing nation are most likely to engage in

Which of the following statements is not true with regard to the product-cycle theory?

The Grubel and Lloyd index measures the magnitude of a nation's

a)Explain why the Heckscher-Ohlin trade model needs to be extended. b)Indicate in what important ways the Heckscher-Ohlin trade model can be extended. c)Explain what is meant by differentiated products and intra-industry trade.

When a nation has increasing returns to scale,the shape of its production possibility frontier is

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

Increasing returns to scale means that

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 Heckscher-Ohlin Theory

Economic Growth and International Trade

Economic Growth and International Trade

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

The Income Adjustment Mechanism and Synthesis of Automatic

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

Which of the following is an example of intra-industry trade?

A footloose industry is one in which the product:

Transport costs:

A developed and developing nation are most likely to engage in

Which of the following statements is not true with regard to the product-cycle theory?

The Grubel and Lloyd index measures the magnitude of a nation's

a)Explain why the Heckscher-Ohlin trade model needs to be extended. b)Indicate in what important ways the Heckscher-Ohlin trade model can be extended. c)Explain what is meant by differentiated products and intra-industry trade.

When a nation has increasing returns to scale,the shape of its production possibility frontier is

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

Increasing returns to scale means that

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 Heckscher-Ohlin Theory

Economic Growth and International Trade

Economic Growth and International Trade

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

The Income Adjustment Mechanism and Synthesis of Automatic

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