Declining costs per unit of output results from international trade especially if ?

Related Mcqs:

According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ?

A. Devote excessive amounts of resources to agricultural production B. Devote insufficient amounts of resources to agricultural production C. Export products that are land-intensive D. Import products that are land-intensive...

According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?

A. similar endowments of natural resources B. similar levels of technology C. similar per-capita incomes D. similar wage levels...

Leontief’s result were considered paradoxical because the United Stated was believed to be ?

A. technologically efficient relative to the rest of the world B. capital abundant relative to the rest of the world C. labor abundant relative to the rest of the world D. All of the above...

Dynamic comparative advantage theory ?

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...

By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ?

A. The prices of trade goods to be lower than when there are no transportation costs B. specialization to stop when the production costs of the trading partners equalize C. The volume of trade to be less than when there are no transportation costs D. The gains from trade to be greater than when there … By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ?Read More...