A. wage differentials, skill levels
B. technology, the ease of factor substitution
C. government grants, international competition
D. patents, skill shortages
Related Mcqs:
- Tariffs are used to protect infant industries these industries are those which ?
A. employ many young or untrained workers
B. are competing with well-established overseas firms
C. are not yet large enough to achieve economies of scale
D. use a new technology - The synchronized application of capital to a wide range of different industries is called __________ by its advocates?
A. balanced growth
B. capitalization
C. elasticity of capital
D. indivisibilities - ________ protection such as the escape clause, provide temporary protection to domestic industries facing competition from fairly traded foreign goods?
A. generalized system of preference
B. countervailing duty
C. domestic content
D. safeguards - In the short run, the supply of capital is ________ and in the long run will depend on _______?
A. variable, technology
B. fixed, expectations
C. fixed, rental rate of capital
D. variable, interest rates - If the economy is at the peak of the business cycle, aggregate demand ____ unemployment _______ inflation _______ and the current account of the balance of payments is likely to move towards _______?
A. rise; falls; rise; deficit
B. falls; rises; falls; surplus
C. falls; falls; falls; surplus
D. is static; low; rises; deficit - Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _______ and ________ ?
A. buy foreign exchange, sell domestic currency
B. sell foreign exchange buy domestic currency
C. buy foreign exchange buy domestic currency
D. sell foreign exchange sell domestic currency - Interindustry trade can be explained by all of the following except ?
A. high transportation costs as a proportion of product value
B. different growing seasons of the year for agricultural products
C. product differentiation for good such as automobiles
D. high per capita incomes in exporting countries - The appreciation in the value of the dollar in the early 1980s is explained by all of the following except ?
A. the United States being considered a safe haven by foreign investors
B. relatively high real interest rates in the United States
C. confidence of foreign investors in the U.S economy
D. relatively high inflation rates in the United States - The high foreign exchange value of the U.S dollar in the early 1980s can best be explained by ?
A. additional investment funds made available from overseas
B. lack of investor confidence in U.S fiscal policy
C. market expectations of rising inflation in the United States
D. American tourists overseas finding costs increasing - Suppose that U.S dollar depreciates 70 percent against the yen yet Japanese export prices to Americans did not decrease by the full extent of the dollar depreciation. This is best explained by ?
A. partial currency pass through
B. complete currency pass through
C. partial J curve effect
D. complete J curve effect
