A. differences in technology
B. differences in factor endowments
C. scale economies
D. All of the above
Related Mcqs:
- A main advantage of specialization results from ?
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 - Should international transportation costs decrease the effect on international trade would include a (an) ?
A. increase in the volume of trade
B. Smaller gain from trade
C. Decline in the income of home producers
D. Decrease in the level of specialization in production - perfect international capital mobility suggests that international funds will be responsive to ________ differentials?
A. current account
B. interest rate
C. tax
D. price - If the world price of steel is $500 a ton a specific tariff $50 is equivalent to an ad valorem tariff of______________?
A. 5 percent
B. 10 percent
C. 15 percent
D. 20 percent - Trade creation takes place when ?
A. a country moves from autarky to free trade
B. a movement to a customs union reduces the cost of trade through standardization
C. economic integration results in a movement in product origin to a lower-cost member country
D. economic integration results in a shift in product origin from a lower cost nonmember country to a member country having higher costs - Trade diversion takes place when ?
A. a country moves from autarky to free trade
B. a movement to a customs union reduces the costs of trade through standardization economic integration results in a
C. economic integration results in a movement in product origin to a lower cost member country
D. economic integration results in a shift in product origin from a lower-cost, nonmember country to a member country having higher costs - Which of the following takes place when a tax is placed a good ?
A. a decrease in the price buyers pay, an increase in the price sellers receive, and a decrease in the quantity sold
B. an increase in the price buyers pay a decrease in the price sellers receive, and an increase in the quantity sold
C. a decrease in the price buyers pay, an increase in the price sellers receive and an increase in the quantity sold
D. an increase in the price buyers pay a decrease in the price sellers receive and a decrease in the quantity sold - The largest volume of foreign exchange trading takes place in ?
A. China
B. Germany
C. United Kingdom
D. USA - If the exchange rate is 11 Mexican pesos per U.S dollar, then it takes _______ to buy 1 peso?
A. $0.0909
B. $0.1002
C. $0.2826
D. $1.1024 - Nicole wants to avoid buying a car that is a lemon. She takes a car she would like to buy to her mechanic before she purchases it. This is known as ?
A. screening
B. signaling
C. moral hazard
D. adverse selection
