A larger variety of products results from international trade especially if:
A. Internationaltradeaffordsproducersmonopolypower
B. Nationalgovernmentslevyimporttariffsandquotas
C. Producinggoodsentailsincreasingcosts
D. Economiesofscaleexistforproducers
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With economies of scale and decreasing unit costs, a country has the incentive to:
A. Specializecompletelyintheproduct of its comparative advantage
B. Specializepartiallyinthe product of its comparative advantage
C. Specializecompletelyinthe product of its comparative disadvantage
D. Specializepartiallyintheproduct of its comparative disadvantage
Proponents of ____ maintain that government should enact polices that encourage the decelopment of emerging, "sunrise" industries.
A. Productlifecyclepolicy
B. Staticcomparativeadvantagepolicy
C. Intra-industrytradepolicy
D. Industrialpolicy
Legislationrequiringdomestic manufacturers to install pollution abatement equipment tends to promote:
A. Higherproductioncosts and an increase in output
B. Higherproductioncostsand a decrease in output
C. Lowerproduction costs and an increase in output
D. Lowerproductioncostsand a decrease in output
Stringentgovernmentalregulations (e.g. air quality standars) imposed on domestic steel manufacturers tend to:
A. Enhancetheircompetitiveness in the international market
B. Detractfromtheircompetitivenessin the international market
C. Increasetheprofitabilityand productivity of domestic manufacturers
D. Reducethemarketshareof foreign firms selling steel in the domestic market
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