That the division of labor is limited by the size of the market best applies to which explanation of trade?
A. Factorendowmenttheory
B. Productlife cycle theory
C. Economiesofscaletheory
D. Overlapping demand theory
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A larger variety of products results from international trade especially if:
A. Internationaltradeaffordsproducersmonopolypower
B. Nationalgovernmentslevyimporttariffsandquotas
C. Producinggoodsentailsincreasingcosts
D. Economiesofscaleexistforproducers
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
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