Question 1

A corporation is considered a multinational ________ if ________.

Accepted Answer

A) parent;it owns more than 10% of a foreign firm 
B) parent;more than 10% of its stock is held by a foreign company 
C) child;more than 10% of its stock is held by a foreign company 
D) child;more than 50% of its stock is held by a foreign company 
E) monopolist;it owns more than 50% of a foreign firm 
A) parent;it owns more than 10% of a foreign firm 
B) parent;more than 10% of its stock is held by a foreign company 
C) child;more than 10% of its stock is held by a foreign company 
D) child;more than 50% of its stock is held by a foreign company 
E) monopolist;it owns more than 50% of a foreign firm

Question 2

An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q.What is average fixed cost equal to when Q = 10?

Accepted Answer

The answer of An imperfectly competitive firm has the following...

Question 3

An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q.What is average total cost equal to when Q = 10?

Accepted Answer

C/Q = [100

Question 4

An industry is characterized by scale economies and exists in two countries.In order for consumers of its products to enjoy both lower prices and more variety of choice

Accepted Answer

A) the two countries must engage in international trade with each other. 
B) each country's marginal cost must equal that of the other country. 
C) the marginal cost of this industry must equal marginal revenue in the other. 
D) the monopoly must lower prices in order to sell more. 
E) they must combine to become a multinational corporation. 
A) the two countries must engage in international trade with each other. 
B) each country's marginal cost must equal that of the other country. 
C) the marginal cost of this industry must equal marginal revenue in the other. 
D) the monopoly must lower prices in order to sell more. 
E) they must combine to become a multinational corporation.

Question 5

An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q.What is total cost equal to when Q = 10?

Accepted Answer

C = 100 +

Question 6

-Refer to above figure.Given the opportunity to sell at world prices,the marginal (opportunity)cost of selling a ton domestically is what?

Accepted Answer

The answer of  
-Refer to above figure.Given the opportunity...

Question 7

A corporation is considered a multinational ________ if ________.

Accepted Answer

A) affiliate;more than 10% of its stock is held by a foreign company 
B) parent;more than 10% of its stock is held by a foreign company 
C) child;more than 10% of its stock is held by a foreign company 
D) child;more than 50% of its stock is held by a foreign company 
E) monopolist;it owns more than 50% of a foreign firm 
A) affiliate;more than 10% of its stock is held by a foreign company 
B) parent;more than 10% of its stock is held by a foreign company 
C) child;more than 10% of its stock is held by a foreign company 
D) child;more than 50% of its stock is held by a foreign company 
E) monopolist;it owns more than 50% of a foreign firm

Question 8

-The figure above represents the demand and cost functions facing a Brazilian Steel producing monopolist.The Brazilian firm is charging its foreign (U.S. )customers one half the price it is charging its domestic customers.Is this good or bad for the real income or economic welfare of the United States? Is the Brazilian firm engaged in dumping? Is this predatory behavior on the part of the Brazilian steel company?

Accepted Answer

It is good for U.S.customers.Yes,this is

Question 9

In the model of monopolistic competition,if firms have ________ average cost curves,then opening trade will cause ________ firms to ________ the industry.

Accepted Answer

A) different;less efficient;exit 
B) different;more efficient;enter 
C) symmetric;less efficient;exit 
D) symmetric;more efficient;enter 
E) symmetric;less efficient;enter 
A) different;less efficient;exit 
B) different;more efficient;enter 
C) symmetric;less efficient;exit 
D) symmetric;more efficient;enter 
E) symmetric;less efficient;enter

Question 10

If a firm increases its output in the ________ and unit costs ________,then the firm is experiencing ________ of scale.

Accepted Answer

A) long-run;decrease;economies 
B) short-run;decrease;economies 
C) long-run;decrease;diseconomies 
D) short-run;decrease;diseconomies 
E) long-run;increase;economies 
A) long-run;decrease;economies 
B) short-run;decrease;economies 
C) long-run;decrease;diseconomies 
D) short-run;decrease;diseconomies 
E) long-run;increase;economies

Question 11

Two countries engaged in trade in products with no scale economies,produced under conditions of perfect competition,are likely to be engaged in

Accepted Answer

A) inter-industry trade. 
B) monopolistic competition. 
C) intra-industry trade. 
D) Heckscher-Ohlin trade. 
E) oligopolistic competition 
A) inter-industry trade. 
B) monopolistic competition. 
C) intra-industry trade. 
D) Heckscher-Ohlin trade. 
E) oligopolistic competition

Question 12

When a multinational affiliate replicates production in a foreign country it is called ________ foreign direct investment.

Accepted Answer

A) horizontal 
B) vertical 
C) transitional 
D) bisectional 
E) direct 
A) horizontal 
B) vertical 
C) transitional 
D) bisectional 
E) direct

Question 13

A product is produced in a monopolistically competitive industry with scale economies.If this industry exists in two countries,and these two countries engage in trade with each other,then we would expect

Accepted Answer

A) each country will export different varieties of the product to the other. 
B) the country in which the price of the product is lower will export the product. 
C) the country with a relative abundance of the factor of production in which production of the product is intensive will export this product. 
D) neither country will export this product since there is no comparative advantage. 
E) the countries will trade only with other nations they are not in competition with. 
A) each country will export different varieties of the product to the other. 
B) the country in which the price of the product is lower will export the product. 
C) the country with a relative abundance of the factor of production in which production of the product is intensive will export this product. 
D) neither country will export this product since there is no comparative advantage. 
E) the countries will trade only with other nations they are not in competition with.

Question 14

If there are a large number of firms in a monopolistically competitive industry

Accepted Answer

A) long-run profit will be equal to zero. 
B) the country in which the firms are located can be expected to export the goods they produce. 
C) there will be barriers to entry that prevent addition firms from entering the industry. 
D) the firms will converge production on a standardized product. 
E) there will be a small number of firms that are very large and the rest will be very small. 
A) long-run profit will be equal to zero. 
B) the country in which the firms are located can be expected to export the goods they produce. 
C) there will be barriers to entry that prevent addition firms from entering the industry. 
D) the firms will converge production on a standardized product. 
E) there will be a small number of firms that are very large and the rest will be very small.

Question 15

We often observe "pseudo-intra-industry trade" between the United States and Mexico.Actually,such trade is consistent with

Accepted Answer

A) comparative advantage associated with Heckscher-Ohlin model. 
B) oligopolistic markets. 
C) optimal tariff issues. 
D) the Ricardian model of trade. 
E) the specific factors model of trade. 
A) comparative advantage associated with Heckscher-Ohlin model. 
B) oligopolistic markets. 
C) optimal tariff issues. 
D) the Ricardian model of trade. 
E) the specific factors model of trade.

Question 16

-Refer to above figure.The monopolist can export as much as it likes of its steel at the world price of $5/ton.How much steel will the monopolist sell,and at what price?

Accepted Answer

It would s

Question 17

Two countries engaged in trade in products with scale economies,produced under conditions of monopolistic competition,are likely to be engaged in

Accepted Answer

A) intra-industry trade. 
B) price competition. 
C) inter-industry trade. 
D) Heckscher-Ohlinean trade. 
E) immiserizing trade. 
A) intra-industry trade. 
B) price competition. 
C) inter-industry trade. 
D) Heckscher-Ohlinean trade. 
E) immiserizing trade.

Question 18

Firms that produce ________ products must be ________ competitive.

Accepted Answer

A) differentiated;imperfectly 
B) differentiated;perfectly 
C) standardized;imperfectly 
D) standardized;perfectly 
E) exported;imperfectly 
A) differentiated;imperfectly 
B) differentiated;perfectly 
C) standardized;imperfectly 
D) standardized;perfectly 
E) exported;imperfectly

Question 19

Under oligopoly,firms' pricing policies are ________ and,under monopolistic competition,they are ________.

Accepted Answer

A) interdependent;independent 
B) independent;interdependent 
C) cooperative;uncooperative 
D) uncooperative;cooperative 
E) profit maximizing;revenue maximizing 
A) interdependent;independent 
B) independent;interdependent 
C) cooperative;uncooperative 
D) uncooperative;cooperative 
E) profit maximizing;revenue maximizing

Question 20

Modeling trade in imperfectly competitive industries is problematic because

Accepted Answer

A) there is no single generally accepted model of behavior by imperfectly competitive firms. 
B) there are no models of imperfectly competitive behavior. 
C) it is difficult to find an imperfectly competitive firm in the real world. 
D) collusion among imperfectly competitive firms makes usable data rare. 
E) there is only a single model of imperfect competition (monopoly)but imperfect competition can take many forms in the real world. 
A) there is no single generally accepted model of behavior by imperfectly competitive firms. 
B) there are no models of imperfectly competitive behavior. 
C) it is difficult to find an imperfectly competitive firm in the real world. 
D) collusion among imperfectly competitive firms makes usable data rare. 
E) there is only a single model of imperfect competition (monopoly)but imperfect competition can take many forms in the real world.

Exam 8: Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises

A corporation is considered a multinational ________ if ________.

An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q.What is average fixed cost equal to when Q = 10?

An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q.What is average total cost equal to when Q = 10?

An industry is characterized by scale economies and exists in two countries.In order for consumers of its products to enjoy both lower prices and more variety of choice

An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q.What is total cost equal to when Q = 10?

-Refer to above figure.Given the opportunity to sell at world prices,the marginal (opportunity)cost of selling a ton domestically is what?

A corporation is considered a multinational ________ if ________.

In the model of monopolistic competition,if firms have ________ average cost curves,then opening trade will cause ________ firms to ________ the industry.

If a firm increases its output in the ________ and unit costs ________,then the firm is experiencing ________ of scale.

Two countries engaged in trade in products with no scale economies,produced under conditions of perfect competition,are likely to be engaged in

When a multinational affiliate replicates production in a foreign country it is called ________ foreign direct investment.

A product is produced in a monopolistically competitive industry with scale economies.If this industry exists in two countries,and these two countries engage in trade with each other,then we would expect

If there are a large number of firms in a monopolistically competitive industry

We often observe "pseudo-intra-industry trade" between the United States and Mexico.Actually,such trade is consistent with

-Refer to above figure.The monopolist can export as much as it likes of its steel at the world price of $5/ton.How much steel will the monopolist sell,and at what price?

Two countries engaged in trade in products with scale economies,produced under conditions of monopolistic competition,are likely to be engaged in

Firms that produce ________ products must be ________ competitive.

Under oligopoly,firms' pricing policies are ________ and,under monopolistic competition,they are ________.

Modeling trade in imperfectly competitive industries is problematic because

Introduction

World Trade: An Overview

Labor Productivity and Comparative Advantage: The Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

The Standard Trade Model

External Economies of Scale and the International Location of Production

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

National Income Accounting and the Balance of Payments

Exchange Rates and the Foreign Exchange Market: An Asset Approach

Money,Interest Rates, and Exchange Rates

Price Levels and the Exchange Rate in the Long Run

Output and the Exchange Rate in the Short Run

Fixed Exchange Rates and Foreign Exchange Intervention

International Monetary Systems: An Historical Overview

Financial Globalization: Opportunity and Crisis

Optimum Currency Areas and the Euro

Developing Countries: Growth, Crisis, and Reform

Filters

A corporation is considered a multinational if .

A corporation is considered a multinational if .

In the model of monopolistic competition,if firms have average cost curves,then opening trade will cause firms to the industry.

If a firm increases its output in the and unit costs ,then the firm is experiencing of scale.

Firms that produce products must be competitive.

Under oligopoly,firms' pricing policies are and,under monopolistic competition,they are .