Exam 3: Sources of Comparative Advantage

Economists David Autor, David Dorn, and Gordon Hanson investigated the effects of trade with China on blue-collar American jobs.Which statement reflects their findings?

Which of the following suggests that by widening the market's size, international trade can permit longer production runs for manufacturers, which leads to increasing efficiency?

To justify the subsidies it has received from European governments, The Airbus Company has used all of the following arguments EXCEPT

Because seasons in the southern hemisphere are opposite those in the northern hemisphere, one would expect intra-industry trade to occur in agricultural products.

Europe's jumbo-jet manufacturer, Airbus, has justified receiving governmental subsidies with the argument that the subsidies prevent the United States from becoming a monopoly in the jumbo-jet market.

According to the factor-endowment theory,

Which theory emphasizes the role of technology in determining the trade patterns of manufactured products?

Environmental regulation in the United States

When considering the effects of transportation costs, the conclusions of our trade model must be modified.This is because transportation costs result in

Which trade theory suggests that comparative advantage tends to shift from one nation to another as a product matures?

Concerning the influence that transportation costs have on the location of industry, which of the following industries is likely to have the greatest profit gain by locating the production facilities close to resource supplies?

Assume that Country A, in the absence of trade, finds itself relatively abundant in labor and relatively scarce in land.The factor endowment theory reasons that with free trade, the internal distribution of national income in Country A will change in favor of

According to Staffan Linder, trade between two countries tends to be MOST pronounced when the countries

According to the factor-endowment theory, countries with an abundance of unskilled labor, like China, are likely to

Assume that labor is relatively scarce in the United States.According to the factor-price equalization theory, American labor may opt for trade barriers once trade opens up.

If jetliners are a capital-intensive product, and the United States exports jetliners, then the Heckscher-Ohlin theory predicts that the United States is

According to the factor-endowment theory, a country will export that good which intensively uses the country's relatively scarce resource.

Decreasing cost conditions lead to complete specialization in the production of the commodity of comparative advantage.

The factor-price equalization theory is a short-run version of the specific-factors theory.

In industries where the final product is much less weighty or bulky than the materials from which it is made, firms tend to locate production near resource supplies.