Boeing Inc. has criticized The Airbus Company's competitiveness on the grounds that Airbus benefits from:
A. Import tariffs protecting Airbus in the European market
B. Import quotas protecting Airbus in the European market
C. Lenient environmental standards of European governments
D. Production subsidies supplied by European governments
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To justify the subsidies it has received from European governments, The Airbus Company has used all of the following arguments except:
A. Its subsidies have prevented U.aircraft firms from holding a world-wide monopoly
B. U.aircraft firms have benefited from military-sponsored programs of the U.government
C. Airbus' subsidies were totally repaid as the firm realized profits on its aircraft sales
D. Without subsidies to Airbus, Europe would be dependent on the United States as a supplier of aircraft
Expanding trade or technological improvements in the US will:
A. increases the demand for skilled workersbut decreases the demand for unskilled workersin the U.S.
B. increases the demand for unskilled workers and decrease the demand for skilled workersin the U.S.
C. increases the demand for both skilled and unskilled workers in the U.S.
D. decrease the demand for both skilled and unkilled workers in the US.
Economists agree that wages of unskilled workers are being held down by
A. International trade
B. Technology improvements
C. Lack of education
D. A combination of a, b, and c
The factor endowment theory states that comparative advantage is explained
A. Exclusively by differences in relative supply conditions
B. Exclusively by differences in relative national demand conditions
C. Both supply and demand conditions
D. None of the above
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