NAME

Question types


Start with


Question limit

of 19 available terms

Advertisement Upgrade to remove ads
Print test

7 Written questions

6 Multiple choice questions

  1. Different countries produce different varieties of the same product to sell to consumers in various countries with differences in preferences.
  2. The gains from trade that occur over time because trade causes an increase in a country's economic growth or induces greater efficiency in the use of existing resources.
  3. The ratio of a country's exports divided by its GDP.
  4. A corporation's purchase of real assets, such as production facilities and equipment, in a foreign country.
  5. The economic doctrine that contends a country's wealth is determined by its holdings of precious metals and espouses trade policies that promote the accumulation of gold and silver.
    *The school of thought that advocated policies designed to generate trade surpluses, so as to increase a country's holdings of gold.
  6. A country has an absolute advantage in a good if it can produce that good by using fewer inputs than its trading partner

6 True/False questions

  1. The Heckschler-Ohlin ModelA country has a comparative advantage in (and will export) that good which is intensive in the use of that country's abundant resource.

          

  2. The Stolper-Samuelson TheoryA country has a comparative advantage in (and will export) that good which is intensive in the use of that country's abundant resource.

          

  3. Comparative AdvantageA country has a comparative advantage in the production of a good if the relative cost (opportunity cost) of producing that good is lower than that of its trading partner.

          

  4. Explanations for Intra-industry tradeOccurs when a country imports and exports the same good.

          

  5. Capital Abundantthe situation where a country has a high capital-to-labor ratio relative to another country.

          

  6. Explanations for Intra-industry tradeDissimilar good with different factor intensities are lumped together in trade statistics.