Question 1

Explain how immigration and trade may worsen wage inequality, and how college education may mitigate against that.

Accepted Answer

Trade tends to increase the demand for s

Question 2

According to Staffan Linder, the factor endowment theory is useful in explaining trade patterns in manufactured goods, but not primary products.

Accepted Answer

A) True 
 B)False

Question 3

Legislation requiring domestic manufacturers to install pollution abatement equipment tends to promote:

Accepted Answer

A)  Higher production costs and an increase in output 
B)  Higher production costs and a decrease in output 
C)  Lower production costs and an increase in output 
D)  Lower production costs and a decrease in output 
A)  Higher production costs and an increase in output 
B)  Higher production costs and a decrease in output 
C)  Lower production costs and an increase in output 
D)  Lower production costs and a decrease in output

Question 4

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

Accepted Answer

A)  Interindustry trade theory 
B)  Intraindustry trade theory 
C)  Product life cycle theory 
D)  Overlapping demand theory 
A)  Interindustry trade theory 
B)  Intraindustry trade theory 
C)  Product life cycle theory 
D)  Overlapping demand theory

Question 5

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

Accepted Answer

A)  Its subsidies have prevented U.S. aircraft firms from holding a world-wide monopoly 
B)  U.S. aircraft firms have benefited from military-sponsored programs of the U.S. government 
C)  Airbus' subsidies were totally repaid as the firm realized profits on its aircraft sales 
D)  Without subsidies to Airbus, Europe would be dependent on the United States as a supplier of aircraft 
A)  Its subsidies have prevented U.S. aircraft firms from holding a world-wide monopoly 
B)  U.S. aircraft firms have benefited from military-sponsored programs of the U.S. government 
C)  Airbus' subsidies were totally repaid as the firm realized profits on its aircraft sales 
D)  Without subsidies to Airbus, Europe would be dependent on the United States as a supplier of aircraft

Question 6

According to Staffan Linder, trade between two countries tends to be $\underline {  \text { most }  }$ pronounced when the countries:

Accepted Answer

A)  Find their tastes and preferences to be quite harmonious 
B)  Experience economies of large-scale production over large output levels 
C)  Face dissimilar relative abundances of the factors of production 
D)  Find their per capita income levels to be approximately the same 
A)  Find their tastes and preferences to be quite harmonious 
B)  Experience economies of large-scale production over large output levels 
C)  Face dissimilar relative abundances of the factors of production 
D)  Find their per capita income levels to be approximately the same

Question 7

The factor endowment theory assumes

Accepted Answer

A)  Same tastes and preferences 
B)  Factor inputs of uniform quality 
C)  Same technology 
D)  All of the above 
A)  Same tastes and preferences 
B)  Factor inputs of uniform quality 
C)  Same technology 
D)  All of the above

Question 8

The product-life-cycle theory applies best to trade in primary products in the short run.

Accepted Answer

A) True 
 B)False

Question 9

Classical trade theory emphasized which of the following as an underlying explanation of the basis for trade?

Accepted Answer

A)  Productivities of labor inputs 
B)  Tastes and preferences among nations 
C)  Changes in technologies over time 
D)  Quantities of economic resources 
A)  Productivities of labor inputs 
B)  Tastes and preferences among nations 
C)  Changes in technologies over time 
D)  Quantities of economic resources

Explain how immigration and trade may worsen wage inequality, and how college education may mitigate against that.

According to Staffan Linder, the factor endowment theory is useful in explaining trade patterns in manufactured goods, but not primary products.

Legislation requiring domestic manufacturers to install pollution abatement equipment tends to promote:

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

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

According to Staffan Linder, trade between two countries tends to be $\underline { \text { most } }$ pronounced when the countries:

The factor endowment theory assumes

The product-life-cycle theory applies best to trade in primary products in the short run.

Classical trade theory emphasized which of the following as an underlying explanation of the basis for trade?

The International Economy and Globalization

Foundations of Modern Trade Theory: Comparative Advantage

Tariffs

Nontariff Trade Barriers

Trade Regulations and Industrial Policies

Trade Policies for the Developing Nations

Regional Trading Arrangements

International Factor Movements and Multinational Enterprises

The Balance of Payments

Foreign Exchange

Exchange-Rate Determination

Mechanisms of International Adjustment

Exchange-Rate Adjustments and the Balance of Payments

Exchange-Rate Systems and Currency Crises

Macroeconomic Policy in an Open Economy

International Banking: Reserves, Debt, and Risk

Filters

Exam 3: Sources of Comparative Advantage

Explain how immigration and trade may worsen wage inequality, and how college education may mitigate against that.

According to Staffan Linder, the factor endowment theory is useful in explaining trade patterns in manufactured goods, but not primary products.

Legislation requiring domestic manufacturers to install pollution abatement equipment tends to promote:

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

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

According to Staffan Linder, trade between two countries tends to be most ‾\underline { \text { most } } most ​ pronounced when the countries:

The factor endowment theory assumes

The product-life-cycle theory applies best to trade in primary products in the short run.

Classical trade theory emphasized which of the following as an underlying explanation of the basis for trade?

The International Economy and Globalization

Foundations of Modern Trade Theory: Comparative Advantage

Tariffs

Nontariff Trade Barriers

Trade Regulations and Industrial Policies

Trade Policies for the Developing Nations

Regional Trading Arrangements

International Factor Movements and Multinational Enterprises

The Balance of Payments

Foreign Exchange

Exchange-Rate Determination

Mechanisms of International Adjustment

Exchange-Rate Adjustments and the Balance of Payments

Exchange-Rate Systems and Currency Crises

Macroeconomic Policy in an Open Economy

International Banking: Reserves, Debt, and Risk

Filters

According to Staffan Linder, trade between two countries tends to be $\underline { \text { most } }$ pronounced when the countries: