Question 1

Which of the following is a reason why trade and geography are linked?

Accepted Answer

A) There are high costs of locating in large urban areas. 
B) Many industries have no economies of scale. 
C) Competition means that all firms want to locate near each other. 
D) Some locations give access to pools of skilled labor or special resources. 
A) There are high costs of locating in large urban areas. 
B) Many industries have no economies of scale. 
C) Competition means that all firms want to locate near each other. 
D) Some locations give access to pools of skilled labor or special resources.

Question 2

Most foreign investment is today is directed towards high-income countries because

Accepted Answer

A) there are tax breaks and subsidies available. 
B) markets are larger, so transportation costs are minimized by producing near the market. 
C) high-income countries are politically stable. 
D) there are no economies of scale in low-income countries. 
A) there are tax breaks and subsidies available. 
B) markets are larger, so transportation costs are minimized by producing near the market. 
C) high-income countries are politically stable. 
D) there are no economies of scale in low-income countries.

Question 3

If social returns to the production of a good are less than private returns,then we can conclude that relative to the social optimum,the good will be

Accepted Answer

A) overproduced and underpriced. 
B) underproduced and overpriced. 
C) overproduced and overpriced. 
D) underproduced and underpriced. 
A) overproduced and underpriced. 
B) underproduced and overpriced. 
C) overproduced and overpriced. 
D) underproduced and underpriced.

Question 4

Concentration of industries can lead to external economies for all of the following reasons EXCEPT

Accepted Answer

A) concentrated industries will not be competitive. 
B) concentrated industries will attract a network of input suppliers. 
C) concentrated industries will attract a deep pool of skilled labor. 
D) concentrated industries will experience knowledge spillovers. 
A) concentrated industries will not be competitive. 
B) concentrated industries will attract a network of input suppliers. 
C) concentrated industries will attract a deep pool of skilled labor. 
D) concentrated industries will experience knowledge spillovers.

Question 5

Which of the following is FALSE about intraindustry trade?

Accepted Answer

A) Intraindustry trade creates gains from trade. 
B) Intraindustry trade is due to comparative advantage. 
C) Intraindustry trade may involve heightened competition and lower prices for consumers. 
D) Intraindustry trade increases consumer choice. 
A) Intraindustry trade creates gains from trade. 
B) Intraindustry trade is due to comparative advantage. 
C) Intraindustry trade may involve heightened competition and lower prices for consumers. 
D) Intraindustry trade increases consumer choice.

Question 6

If countries have similar factor endowments and productivities,their trade is likely to be interindustry.

Accepted Answer

A) True 
 B)False

Question 7

One problem with industrial policies is that

Accepted Answer

A) R&D only benefits the firm that conducts it. 
B) governments usually target the wrong industries. 
C) it is difficult to measure the extent of market failure. 
D) it is not politically popular to support industries. 
A) R&D only benefits the firm that conducts it. 
B) governments usually target the wrong industries. 
C) it is difficult to measure the extent of market failure. 
D) it is not politically popular to support industries.

Question 8

Comparative advantage cannot account for a significant portion of world trade.

Accepted Answer

A) True 
 B)False

Which of the following is a reason why trade and geography are linked?

Most foreign investment is today is directed towards high-income countries because

If social returns to the production of a good are less than private returns,then we can conclude that relative to the social optimum,the good will be

Concentration of industries can lead to external economies for all of the following reasons EXCEPT

Which of the following is FALSE about intraindustry trade?

If countries have similar factor endowments and productivities,their trade is likely to be interindustry.

One problem with industrial policies is that

Comparative advantage cannot account for a significant portion of world trade.

The United States in a Global Economy

International Economic Institutions Since World War II

Comparative Advantage and the Gains From Trade

Comparative Advantage and Factor Endowments

The Theory of Tariffs and Quotas

Commercial Policy

International Trade and Labor and Environmental Standards

Trade and the Balance of Payments

Exchange Rates and Exchange Rate Systems

An Introduction to Open Economy Macroeconomics

International Financial Crises

The United States in the World Economy

The European Union: Many Markets Into One

Trade and Policy Reform in Latin America

Export-Oriented Growth in East Asia

China and India in the World Economy

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Exam 5: Beyond Comparative Advantage

Which of the following is a reason why trade and geography are linked?

Most foreign investment is today is directed towards high-income countries because

If social returns to the production of a good are less than private returns,then we can conclude that relative to the social optimum,the good will be

Concentration of industries can lead to external economies for all of the following reasons EXCEPT

Which of the following is FALSE about intraindustry trade?

If countries have similar factor endowments and productivities,their trade is likely to be interindustry.

One problem with industrial policies is that

Comparative advantage cannot account for a significant portion of world trade.

The United States in a Global Economy

International Economic Institutions Since World War II

Comparative Advantage and the Gains From Trade

Comparative Advantage and Factor Endowments

The Theory of Tariffs and Quotas

Commercial Policy

International Trade and Labor and Environmental Standards

Trade and the Balance of Payments

Exchange Rates and Exchange Rate Systems

An Introduction to Open Economy Macroeconomics

International Financial Crises

The United States in the World Economy

The European Union: Many Markets Into One

Trade and Policy Reform in Latin America

Export-Oriented Growth in East Asia

China and India in the World Economy

Filters