Question 1

Can the index of intra­industry trade ever exceed 1.00?

Accepted Answer

No; it will equal 1.00 when im

Question 2

If a firm has a total fixed cost of $75 and an average variable
Cost of $35 for producing 10 units of output, the average total
Cost would be:

Accepted Answer

A) $425. 
B) $42.50. 
C) $110. 
D) $350. 
A) $425. 
B) $42.50. 
C) $110. 
D) $350.

Question 3

XYZ Corporation is a monopolistic competitor.It has fixed costs of $1,000
per month and a constant marginal cost of $1 per unit of production.
A) Will it earn a monopoly profit if it produces 1,000 units and sells each
for $1.50?
B) Suppose the demand curve facing XYZ Corporation shifts to the right, so
it now can sell 2,000 units at $1.50 each.Will it now earn a monopoly
profit?
C) Why might XYZ's demand curve shift to the right?
D) What must XYZ do to find its short­run equilibrium price and quantity?

Accepted Answer

A) No; its average cost of production [(

Question 4

What is the expected outcome when trade occurs in a
Monopolistically competitive industry if the nations have similar
Tastes, technology, products, and costs?

Accepted Answer

A) No trade is possible. 
B) Consumers are left with no choices. 
C) Each firm has a larger market in which to sell, and consumers have more choices of sellers and products. 
D) Transportation costs become the driving factor. 
A) No trade is possible. 
B) Consumers are left with no choices. 
C) Each firm has a larger market in which to sell, and consumers have more choices of sellers and products. 
D) Transportation costs become the driving factor.

Question 5

Which of the following is the calculation that tells us the
Proportion of trade in each product involving both imports and
Exports?

Accepted Answer

A) the index of overlapping production 
B) the index of effective trade 
C) the index of intra­industry trade 
D) the index of displacement 
A) the index of overlapping production 
B) the index of effective trade 
C) the index of intra­industry trade 
D) the index of displacement

Question 6

Products traded between two nations that are very similar and
Very close substitutes, but that may be of different quality or
Prices, are called:

Accepted Answer

A) differentiated complements. 
B) differentiated substitutes. 
C) differentiated products. 
D) perfect substitute products. 
A) differentiated complements. 
B) differentiated substitutes. 
C) differentiated products. 
D) perfect substitute products.

Question 7

2% reduction in the prices for Mexican imports would save

Accepted Answer

U.S.consumers $1.1 billion per year.Thes

Question 8

Which of the following probably slowed NAFTA's effect on the
Wages of Mexican workers?

Accepted Answer

A) the Mexican peso crisis in which Mexico's currency fell greatly in value 
B) the reluctance of the U.S.government to allow guest workers 
C) the Iraq war 
D) so much illegal immigration 
A) the Mexican peso crisis in which Mexico's currency fell greatly in value 
B) the reluctance of the U.S.government to allow guest workers 
C) the Iraq war 
D) so much illegal immigration

Question 9

Suppose that imports and exports in an industry are both $100
million.If exports rise to $200 million, will the value of the
industry's index of intra­industry trade rise, fall, or remain the
same?

Accepted Answer

It will fall.The previous inde

Question 10

To test the gravity equation of trade, a regression model was
Calculated for two nations, the United States and Canada,
Testing the correlation among:

Accepted Answer

A) regional trade, size of GDP, and distance for states and provinces. 
B) intra­industry trade, size of GDP, and size of states and provinces. 
C) bilateral trade and ratio of GDP for states and provinces. 
D) bilateral trade, size of GDP, and distance for states and provinces. 
A) regional trade, size of GDP, and distance for states and provinces. 
B) intra­industry trade, size of GDP, and size of states and provinces. 
C) bilateral trade and ratio of GDP for states and provinces. 
D) bilateral trade, size of GDP, and distance for states and provinces.

Question 11

Demand Equation for a Good Produced by a
Monopolistically Competitive Firm:
P = 10 - Q
Reference: Ref 6­3
(Demand Equation) If the firm's marginal cost is a constant $2
Per unit, what price will it charge and how many units will it
Produce if it maximizes its profits?

Accepted Answer

A) $8 and 2 units 
B) $7 and 3 units 
C) $6 and 4 units 
D) $5 and 5 units 
A) $8 and 2 units 
B) $7 and 3 units 
C) $6 and 4 units 
D) $5 and 5 units

Question 12

The higher the value for the index of intra­industry trade:

Accepted Answer

A) the lower total trade is for other products. 
B) the greater percentage of trade in that good is intra­ industry. 
C) the more we should be concerned about job loss and outsourcing. 
D) the higher the gains from trade. 
A) the lower total trade is for other products. 
B) the greater percentage of trade in that good is intra­ industry. 
C) the more we should be concerned about job loss and outsourcing. 
D) the higher the gains from trade.

Question 13

Which of the following is likely under free trade and monopolistic
Competition?

Accepted Answer

A) Domestic firms will always be provided cash subsidies. 
B) Some domestic firms will shut down. 
C) Consumers will not benefit at all from trade. 
D) Foreign firms will sell the product at a higher price in the export market. 
A) Domestic firms will always be provided cash subsidies. 
B) Some domestic firms will shut down. 
C) Consumers will not benefit at all from trade. 
D) Foreign firms will sell the product at a higher price in the export market.

Question 14

A monopolistic competitor has fixed costs of $100 and marginal
Costs of $10 per unit.What is its average cost of producing 100
Units?

Accepted Answer

A) $10 
B) $11 
C) $1,100 
D) $2,000 
A) $10 
B) $11 
C) $1,100 
D) $2,000

Question 15

(Table: Imports and Exports of Commodities Within U.S.
Industries) What is the intra­industry trade index for fax
Machines?

Accepted Answer

A) 211% 
B) 90% 
C) 71% 
D) 98% 
A) 211% 
B) 90% 
C) 71% 
D) 98%

Question 16

To analyze intra­industry trade, we must bring in imperfect
Competition, and we change our assumptions about our trade
Models to allow:

Accepted Answer

A) price­conscious consumers. 
B) short­run unemployment. 
C) differentiated products. 
D) perfect competition. 
A) price­conscious consumers. 
B) short­run unemployment. 
C) differentiated products. 
D) perfect competition.

Question 17

If the index of intra­industry trade is high, products are
Probably ______, and costs in both nations are ______.

Accepted Answer

A) identical; different 
B) differentiated; similar 
C) identical; similar 
D) differentiated; different 
A) identical; different 
B) differentiated; similar 
C) identical; similar 
D) differentiated; different

Question 18

What term is used to describe situations where countries
Specialize in and trade different varieties of the same type of
Product?

Accepted Answer

A) comparative advantage 
B) the Heckscher­Ohlin model 
C) intra­industry trade 
D) increasing returns to scale 
A) comparative advantage 
B) the Heckscher­Ohlin model 
C) intra­industry trade 
D) increasing returns to scale

Question 19

SCENARIO: A MONOPOLIST'S MARKET
A monopolistically competitive firm faces demand given by this
Equation: P = 50 ​ Q.It has no fixed costs and its marginal cost
Is $20 per unit.
Reference: Ref 6­2
(Scenario: A Monopolist's Market) What price will the firm charge
When it is maximizing its profits?

Accepted Answer

A) $20 
B) $25 
C) $30 
D) $35 
A) $20 
B) $25 
C) $30 
D) $35

Question 20

SCENARIO: A MONOPOLIST'S MARKET
A monopolistically competitive firm faces demand given by this
Equation: P = 50 ​ Q.It has no fixed costs and its marginal cost
Is $20 per unit.
Reference: Ref 6­2
(Scenario: A Monopolist's Market) What quantity will the firm
Produce when it is maximizing its profits?

Accepted Answer

A) 10 
B) 15 
C) 20 
D) 25 
A) 10 
B) 15 
C) 20 
D) 25

Can the index of intraindustry trade ever exceed 1.00?

If a firm has a total fixed cost of $75 and an average variable Cost of $35 for producing 10 units of output, the average total Cost would be:

What is the expected outcome when trade occurs in a Monopolistically competitive industry if the nations have similar Tastes, technology, products, and costs?

Which of the following is the calculation that tells us the Proportion of trade in each product involving both imports and Exports?

Products traded between two nations that are very similar and Very close substitutes, but that may be of different quality or Prices, are called:

2% reduction in the prices for Mexican imports would save

Which of the following probably slowed NAFTA's effect on the Wages of Mexican workers?

Suppose that imports and exports in an industry are both $100 million.If exports rise to $200 million, will the value of the industry's index of intraindustry trade rise, fall, or remain the same?

To test the gravity equation of trade, a regression model was Calculated for two nations, the United States and Canada, Testing the correlation among:

Demand Equation for a Good Produced by a Monopolistically Competitive Firm: P = 10 - Q Reference: Ref 63 (Demand Equation) If the firm's marginal cost is a constant $2 Per unit, what price will it charge and how many units will it Produce if it maximizes its profits?

The higher the value for the index of intraindustry trade:

Which of the following is likely under free trade and monopolistic Competition?

A monopolistic competitor has fixed costs of $100 and marginal Costs of $10 per unit.What is its average cost of producing 100 Units?

(Table: Imports and Exports of Commodities Within U.S. Industries) What is the intraindustry trade index for fax Machines?

To analyze intraindustry trade, we must bring in imperfect Competition, and we change our assumptions about our trade Models to allow:

If the index of intraindustry trade is high, products are Probably , and costs in both nations are .

What term is used to describe situations where countries Specialize in and trade different varieties of the same type of Product?

SCENARIO: A MONOPOLIST'S MARKET A monopolistically competitive firm faces demand given by this Equation: P = 50 Q.It has no fixed costs and its marginal cost Is $20 per unit. Reference: Ref 62 (Scenario: A Monopolist's Market) What price will the firm charge When it is maximizing its profits?

SCENARIO: A MONOPOLIST'S MARKET A monopolistically competitive firm faces demand given by this Equation: P = 50 Q.It has no fixed costs and its marginal cost Is $20 per unit. Reference: Ref 62 (Scenario: A Monopolist's Market) What quantity will the firm Produce when it is maximizing its profits?

The Global Economy

Trade and Technology: the Ricardian Model

Gains and Losses From Trade in the Specific-Factors Model

Trade and Resources: the Heckscher-Ohlin Model

Movement of Labor and Capital Between Countries

Import Tariffs and Quotas Under Perfect Competition

Import Tariffs and Quotas Under Imperfect Competition

International Agreements: Trade, Labor, and the Environment

Introduction to Exchange Rates and the Foreign Exchange Market

Exchange Rates I: the Monetary Approach in the Long Run

Filters

Exam 6: Increasing Returns to Scale and Monopolistic Competition

Can the index of intra­industry trade ever exceed 1.00?

If a firm has a total fixed cost of $75 and an average variable Cost of $35 for producing 10 units of output, the average total Cost would be:

What is the expected outcome when trade occurs in a Monopolistically competitive industry if the nations have similar Tastes, technology, products, and costs?

Which of the following is the calculation that tells us the Proportion of trade in each product involving both imports and Exports?

Products traded between two nations that are very similar and Very close substitutes, but that may be of different quality or Prices, are called:

2% reduction in the prices for Mexican imports would save

Which of the following probably slowed NAFTA's effect on the Wages of Mexican workers?

Suppose that imports and exports in an industry are both $100 million.If exports rise to $200 million, will the value of the industry's index of intra­industry trade rise, fall, or remain the same?

To test the gravity equation of trade, a regression model was Calculated for two nations, the United States and Canada, Testing the correlation among:

Demand Equation for a Good Produced by a Monopolistically Competitive Firm: P = 10 - Q Reference: Ref 6­3 (Demand Equation) If the firm's marginal cost is a constant $2 Per unit, what price will it charge and how many units will it Produce if it maximizes its profits?

The higher the value for the index of intra­industry trade:

Which of the following is likely under free trade and monopolistic Competition?

A monopolistic competitor has fixed costs of $100 and marginal Costs of $10 per unit.What is its average cost of producing 100 Units?

(Table: Imports and Exports of Commodities Within U.S. Industries) What is the intra­industry trade index for fax Machines?

To analyze intra­industry trade, we must bring in imperfect Competition, and we change our assumptions about our trade Models to allow:

If the index of intra­industry trade is high, products are Probably ______, and costs in both nations are ______.

What term is used to describe situations where countries Specialize in and trade different varieties of the same type of Product?

SCENARIO: A MONOPOLIST'S MARKET A monopolistically competitive firm faces demand given by this Equation: P = 50 ​ Q.It has no fixed costs and its marginal cost Is $20 per unit. Reference: Ref 6­2 (Scenario: A Monopolist's Market) What price will the firm charge When it is maximizing its profits?

The Global Economy

Trade and Technology: the Ricardian Model

Gains and Losses From Trade in the Specific-Factors Model

Trade and Resources: the Heckscher-Ohlin Model

Movement of Labor and Capital Between Countries

Import Tariffs and Quotas Under Perfect Competition

Import Tariffs and Quotas Under Imperfect Competition

International Agreements: Trade, Labor, and the Environment

Introduction to Exchange Rates and the Foreign Exchange Market

Exchange Rates I: the Monetary Approach in the Long Run

Filters

Can the index of intraindustry trade ever exceed 1.00?

Suppose that imports and exports in an industry are both $100 million.If exports rise to $200 million, will the value of the industry's index of intraindustry trade rise, fall, or remain the same?

Demand Equation for a Good Produced by a Monopolistically Competitive Firm: P = 10 - Q Reference: Ref 63 (Demand Equation) If the firm's marginal cost is a constant $2 Per unit, what price will it charge and how many units will it Produce if it maximizes its profits?

The higher the value for the index of intraindustry trade:

(Table: Imports and Exports of Commodities Within U.S. Industries) What is the intraindustry trade index for fax Machines?

To analyze intraindustry trade, we must bring in imperfect Competition, and we change our assumptions about our trade Models to allow:

If the index of intraindustry trade is high, products are Probably , and costs in both nations are .

SCENARIO: A MONOPOLIST'S MARKET A monopolistically competitive firm faces demand given by this Equation: P = 50 Q.It has no fixed costs and its marginal cost Is $20 per unit. Reference: Ref 62 (Scenario: A Monopolist's Market) What price will the firm charge When it is maximizing its profits?