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
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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
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.
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