A. supply condition only
B. demand conditions only
C. supply and demand conditions
D. can’t tell without more information
Correct Answer: supply condition only ✔
Last Updated: June 18, 2019
Related MCQs
- According to the factor price equalization theorem, the ________ factor should oppose free. trade policies in any given country?
- By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ?
- Advocates of industrial policy maintain that government should ?
- According to the Heckscher-Ohlin model ?
- In his empirical test of comparative advantage Wassily Leontief found that ?
- The Heckshcer-Ohl assumes that are indentical between countries?
- One of the predictions of the Heckscher-Ohlin model is that ?
- Industrial policies intended to foster comparative advantage for domestic industries could result in the implementation of ?
- The product cycle theory of trade is essentially a ?
- The Heckscher-Ohl in model rules out the classical model’s basis for trade by assuming that _________ is (are) identical between countries?
- Declining costs per unit of output results from international trade especially if ?
- Dynamic comparative advantage theory ?
- That the division of labor is limited by the size of the market best applies to which explanation of trade ?
- _____ 1954 study of U.S trade patterns showed that U.S exports were labor-intensive compared with U.S imports, even though the United States was widely regarded as a relatively capital-abundant nation ?
- For the United States empirical studies indicate that over the past two hundred years the cost of international transportation relative to the value of U.S imports has ?
- The trade model of the Swedish economies Heckscher and Ohlin maintains that ?
- Which trade theory contends that a country that initially develops and exports a new product may eventually become an importer of it and may no longer manufacture the product ?
- The factor endowment model of international trade was developed by ?
- Interindustry trade can be explained by all of the following except ?
- A product will be traded only if the pre-trade price difference between the two countries ?
- Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?
- The factor endowment theory was pioneered by ?
- Wassily Leontief’s results can be interpreted as ?
- Leontief’s result were considered paradoxical because the United Stated was believed to be ?
- In his empirical tests, Wassily Leontief used an input-output table to ?
- Wassily Leontief used an input output table in order to test the ?
- The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?
- By reducing the volume of trade transportation costs tend to ?
- The analyzes the income distribution effects of trade in the short run when resources are immobile among industries ?
- The comparative advantage model of Ricardo was based on ?
- According to the Heckscher-Ohlin model the source of comparative advantage is a country’s ?
- Difference in environmental standards or other government regulations among nations ?
- Intra-industry trade theory ?
- Should international transportation costs decrease the effect on international trade would include a (an) ?
- According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?
- According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ?
- The theory of overlapping demand predicts that trade in manufactured goods is unimportant for countries with very different ?
- Boeing aircraft company was able to over its production costs of the first – jumbo jetll in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates ?
- The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries ?