The Leontief paradox provided:
A. Support for the principle of absolute advantage
B. Support for the factor endowment model
C. Evidence against the factor endowment model
D. Evidence against the principle of absolute advantage
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Which trade theory suggests that comparative advantage tends to shift from one nation to another as a product matures?
A. Interindustry trade theory
B. Intraindustry trade theory
C. Product life cycle theory
D. Overlapping demand theory
Which trade theory is tantamount to a short-run version of the factor price equalization theory?
A. Specific factors theory
B. Product life cycle theory
C. Economies of scale theory
D. Overlapping demand theory
According to the specific factors trade theory:
A. Owners of factors specific to export industries suffer from trade, while owners of factors specific to import-competing industries gain
B. Owners of factors specific to export industries gain from trade, while owners of factors specific to import-competing industries suffer
C. Both owners of factors specific to export industries and owners of factors specific to import-competing industries gain from trade
D. Both owners of factors specific to export industries and owners of factors specific to import-competing industries suffer from trade
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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