Which of the following suggests that by widening the market's size, international trade can permit longer production runs for manufacturers, which leads to increasing efficiency?
A. Economiesofscale
B. Diseconomiesof scale
Comparative costtheory
D. Absolute cost theory
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The Leontief paradox:
A. was applied to the product life cycle theory.
B. suggested that the US exports labor-intensive goods.
C. found that national income differences underlie world trade patterns.
D. implied that diseconomies of scale occur at low output levels.
Which of the following best applies to the theory of overlapping demands?
A. Manufacturedgoods
B. Services
C. Primaryproducts
D. None of the above
TheHeckscher-Ohlin theory explains comparative advantage as the result of differences in countries:
A. Economies of large-scale production
B. Relative abundance of various resources
C. Relativecostsoflabor
D. Researchanddevelopment
Boeingaircraftcompanywasableto cover its production costsofthe first "jumbo jet" in the1970sbecauseBoeing could market it to several foreign airlines in addition to domestic airlines. This illustrates:
A. howeconomiesofscale make possible a lager variety of products in international trade
B. atransferofwealthfromdomestic consumers to domestic products as the result of trade
C. howanaturalmonopoly is forced to behave more competitively with international trade
D. howanaturalmonopolyisforcedtobehavelesscompetitivelywithinternationaltrade
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