International Economics Test 2 Questions and Answers
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Course
International Economics
Institution
International Economics
International Economics Test 2 Questions and Answers
which trade theory suggests that comparative advantage tends to shift from one nation to another as a product matures? - Answer-product life cycle theory
which of the following is a fixed percentage of the value of an imported product as it ...
International Economics Test 2
Questions and Answers
which trade theory suggests that comparative advantage tends to shift from one nation
to another as a product matures? - Answer-product life cycle theory
which of the following is a fixed percentage of the value of an imported product as it
enters the country - Answer-ad valorem tariff
a tax of 15 percent per imported item would be an example of: - Answer-ad valorem
tariff
a tax of 20 cents per unit of imported cheese would be an example of: - Answer-special
tariff
suppose an importer of steel is required to pay a tariff of $20 per ton plus 5 percent of
the value of steel, this is an example of: - Answer-compound tariff
a compound tariff is a combination of: - Answer-special tariff and an ad valorem tariff
which of the following is true concerning a special tariff? - Answer-it affords less
protection to home producers during eras of rising prices
Hong Kong is relatively abundant in labor, while Canada is relatively abundant in
capital. In both countries, the production of shirts is relatively more labor intensive than
the production of computers. According to the factor endowment theory, Hong Kong will
have a(n); - Answer-comparative advantage in the production of shirts
a firm is said to enjoy economies of scale over the range of output for which the long-
run average cost is: - Answer-decreasing
the leontief paradox provided: - Answer-evidence against the factor endowment model
The ........... suggests that the change in price of a resource is greater than the change
in the price of the good that uses the resource relatively intensively in its production
process - Answer-magnification effect
the theorem that asserts that increases in income occur for the abundant resource that
is used to determine comparative advantage. Conversely, the scarce factor realizes a
decrease in income - Answer-stolper-samuelson
Linders theory of overlapping demand provides an explanation of - Answer-intra-
industry trade
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