In his empirical test of comparative advantage Wassily Leontief found that ?

Related Mcqs:

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...

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...

A product will be traded only if the pre-trade price difference between the two countries ?

A. is less than the cost of transporting it between them B. is greater than the cost of transporting it between them equals the cost of transporting it between them C. equals the cost of transporting it between them D. more information in needed to answer this...

According to the Heckscher-Ohlin model ?

A. everyone automatically gains from trade B. The gainers from trade outnumber the losers from trade C. The scarce factor necessarily gains from trade 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...