A. Economies of large-scale production
B. The specializing country behaving as a monopoly
C. Smaller production runs resulting in lower unit costs
D. High wages paid to foreign workers
Related Mcqs:
- International specialization takes place because of______________?
A. differences in technology
B. differences in factor endowments
C. scale economies
D. All of the above - The comparative advantage comes if each trading partners has a product that will bring a better price in another country than it will at home. Which economist proposed the principle of comparative advantage ?
A. Adam Smith
B. David Ricardo
C. David Smith
D. Adam Ricardo - The theory that states that a country has a comparative advantage in the production of a product if that country is relatively well endowed with inputs used intensively in the production of that product is the?
A. Ricardo Malthus theorem
B. Heckscher Ohlin theorem
C. Lucas-Laffer theorem
D. Friedman Samuelson theorem - A country has a comparative advantage in the production of a product if the good’s _____ cost in different from the good’s _____ cost in another country ?
A. resource; resource
B. foreign exchange money
C. opportunity; opportunity
D. money; opportunity - LDCs often have a comparative advantage in the production of ?
A. primary products
B. intermediate products
C. manufactured products
D. financial services - The comparative advantage model of Ricardo was based on ?
A. intraindustry specialization and trade
B. interindustry specialization and trade
C. demand conditions underlying specialization and trade
D. income conditions underlying specialization and trade - The greatest advantage of a negative income tax is that it ?
A. generates a smaller disincentive to work than most alternative anti-poverty policies.
B. reduces the cost to the government of fighting poverty
C. would not provide benefits to lazy people
D. ensures that the poor actually receive what the government thinks they need does all these answers. - According to the principle of comparative advantage ?
A. South Korea should export steel
B. South Korea should export steel and DVDs
C. Japan should export steel
D. Japan should export steel and DVDs - Comparative advantage is determined by ?
A. actual differences in labor productivity between countries
B. relative differences in labor productivity between countries
C. Both (a) and (b)
D. Neither (a) nor (b) - Riskless transactions to take advantage of profit opportunities due to a price differential or a yield differential in excess of transaction costs are called ?
A. differential actions
B. cash transaction
C. arbitrage
D. forward transactions
