International Trade Theory
Question 1
1 out of 1 points
New trade theory argues that, through its impact on economies of scale, trade can:
Selected Answer:
increase the variety of goods available to consumers.
Answers:
increase the average costs of goods.
enable the global market to support a wide range of enterprises.
negatively affect the first-mover advantage for all products.
increase the variety of goods available to consumers.
prevent diminishing of returns and promote constant returns to specialization.
Response Feedback:
New trade theory argues that, through its impact on economies of scale, trade can increase the variety of goods available to consumers and decrease the average costs of those goods. MC New trade theory argues that, through...
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Hill - Chapter 06 #98
Learning Objective: 06-02 Summarize the different theories explaining trade flows between nations.
Topic: New Trade Theory
Question 2
1 out of 1 points
_____ suggests that consumers in all nations can consume more if there are no restrictions on trade.
Selected Answer:
Ricardo's theory of comparative advantage
Answers:
The Heckscher-Ohlin theory
Mercantilism
Leontief's paradox
Ricardo's theory of comparative advantage
The Samuelson critique
Response Feedback:
Ricardo's theory of comparative advantage suggests that consumers in all nations can consume more if there are no restrictions on trade even if they lack an absolute advantage in the production of any goods. MC _____ suggests that consumers in all...
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Hill - Chapter 06 #63
Learning Objective: 06-03 Recognize why many economists believe that unrestricted free trade between nations will raise the economic welfare of countries that participate in a free trade system.
Topic: Comparative Advantage
Question 3
1 out of 1 points
Which of the
1 out of 1 points
New trade theory argues that, through its impact on economies of scale, trade can:
Selected Answer:
increase the variety of goods available to consumers.
Answers:
increase the average costs of goods.
enable the global market to support a wide range of enterprises.
negatively affect the first-mover advantage for all products.
increase the variety of goods available to consumers.
prevent diminishing of returns and promote constant returns to specialization.
Response Feedback:
New trade theory argues that, through its impact on economies of scale, trade can increase the variety of goods available to consumers and decrease the average costs of those goods. MC New trade theory argues that, through...
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Hill - Chapter 06 #98
Learning Objective: 06-02 Summarize the different theories explaining trade flows between nations.
Topic: New Trade Theory
Question 2
1 out of 1 points
_____ suggests that consumers in all nations can consume more if there are no restrictions on trade.
Selected Answer:
Ricardo's theory of comparative advantage
Answers:
The Heckscher-Ohlin theory
Mercantilism
Leontief's paradox
Ricardo's theory of comparative advantage
The Samuelson critique
Response Feedback:
Ricardo's theory of comparative advantage suggests that consumers in all nations can consume more if there are no restrictions on trade even if they lack an absolute advantage in the production of any goods. MC _____ suggests that consumers in all...
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Hill - Chapter 06 #63
Learning Objective: 06-03 Recognize why many economists believe that unrestricted free trade between nations will raise the economic welfare of countries that participate in a free trade system.
Topic: Comparative Advantage
Question 3
1 out of 1 points
Which of the