A. tastes and preferences
B. technology levels
C. factor indowments
D. Both A and B
Author: Adden wafa
A. countries with different factor endowments but similar technologies and preferences will have a strong basis for trade with each other
B. countries with tend to specialize but not completely in their comparative advantage good
C. reciprocal demand leads to an equilibrium terms of trade by inducing change in both demand and supply
D. All of the above
A. supply condition only
B. demand conditions only
C. supply and demand conditions
D. can’t tell without more information
A. research and development subsidies
B. loan guarantees
C. low interest rate loans
D. All of the above
A. static, short run trade theory
B. dynamic long run trade theory
C. zero-sum theory of trade
D. negative-sum theory of trade
A. factor endowments
B. factor intensities
C. technology
D. opportunity costs
A. International trade affords producers monopoly power
B. National governments levy imports tariffs and quotas
C. Producing goods entails increasing costs
D. Economies of scale exist for producers
A. helps explain why some nations use industrial policy to support potentially competitive new firms
B. cannot explain strategic competition between firms such as Boeing and Airbus
C. Is another name for Ricardo’s comparative advantage theory?
D. None of the above
A. Factor endowment theory
B. Product life cycle theory
C. Economies of scale theory
D. Overlapping demand theory
A. Paul Samuelson’s
B. Wolfgang Stolpher’s
C. Staffan Linder’s
D. Wassily Leontief’s
