Which of the following statements supports deregulation of industries ?

Technological change has made it possible for many industries to become more competitive

Because few real natural monopolies exist, there is rarely a reason for government regulation.

Many instances of government regulation have succeeded in reducing competition in industries where competition may be beneficial

Which of the following would be considered a supply-side policy ?

Restrictions placed on the amount that can be imported.

An increase in the minimum wage that would cause consumer spending to increase

investment tax credits for businesses to encourage investment

Restrictions placed on the amount that can be imported.

An increase in government spending that would lead to increased aggregate demand

Wassily Leontief’s results can be interpreted as ?

support for the Ricardian model

evidence against the Ricardi an model

evidence against the Heckscher-Ohl in model

support for the Ricardian model

support for the Heckcher Ohlin model

Wassily Leontief used an input output table in order to test the ?

Linder theory of overlapping demand

Ricardian theory of comparative advantage

Heckscher Ohl in theory of comparative advantage

Linder theory of overlapping demand

The trade model of the Swedish economies Heckscher and Ohlin maintains that ?

Absolute advantage determines the distribution of the gains from trade

Comparative advantage determines the distribution of the gains from trade

The division of labor is limited by the size of the world market

A country exports goods for which its resource endowments are most suited

The theory of overlapping demand predicts that trade in manufactured goods is unimportant for countries with very different ?

Expectations of future interest rate levels

The success of regional and urban policies has been limited by ?

the low level of government grants and by the fact that some projects would have gone ahead anyway

The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries ?

Economies of large-scale production

Relative abundance of various resources

Research and development expenditures

The comparative advantage model of Ricardo was based on ?

demand conditions underlying specialization and trade

intraindustry specialization and trade

interindustry specialization and trade

demand conditions underlying specialization and trade

income conditions underlying specialization and trade

Privatization is the transfer of ?

privately owned businesses to the government sector

publicly held stock to private individuals

corporately owned businesses to individuals

government businesses to the private sector.

privately owned businesses to the government sector

One of the predictions of the Heckscher-Ohlin model is that ?

countries with different factor endowments but similar technologies and preferences will have a strong basis for trade with each other

countries with tend to specialize but not completely in their comparative advantage good

reciprocal demand leads to an equilibrium terms of trade by inducing change in both demand and supply

New classical economists advocate reducing welfare payments to people who are unemployed or single parents. The economic reasoning used was that this would ?

weaken the power of trade unions

Leontief’s result were considered paradoxical because the United Stated was believed to be ?

labor abundant relative to the rest of the world

technologically efficient relative to the rest of the world

capital abundant relative to the rest of the world

labor abundant relative to the rest of the world

Intra-industry trade theory ?

Assumes that transport costs are very low or do not exist

Explains why the United States might export autos and import clothing

Explains why the United States might export and import differentiated versions of the same product such as different types of autos

Assumes that transport costs are very low or do not exist

ignores seasonal considerations for agricultural goods

Interventionist policies to restore regional imbalance focus on ?

subsidies to encourage firms that moves

tax concessions for firms that move.

Interindustry trade can be explained by all of the following except ?

high transportation costs as a proportion of product value

different growing seasons of the year for agricultural products

product differentiation for good such as automobiles

high per capita incomes in exporting countries

Industrial policies intended to foster comparative advantage for domestic industries could result in the implementation of ?

research and development subsidies

In his empirical test of comparative advantage Wassily Leontief found that ?

U.S exports are capital intensive relative to U.S imports

U.S imports are labor intensive relative to U.S exports

U.S exports are neither labor nor capital intensive

In his empirical tests, Wassily Leontief used an input-output table to ?

calculate the labor productivity of America workers relative to foreign workers

calculate the capital and labor required to produce $1 million of U.S exports and imports

calculate the labor productivity of America workers relative to foreign workers

calculate the capital productivity of American capital relative to foreign capital

If tastes are identical between countries, then comparative advantage is determined by ?

can’t tell without more information

Dynamic comparative advantage theory ?

cannot explain strategic competition between firms such as Boeing and Airbus

helps explain why some nations use industrial policy to support potentially competitive new firms

cannot explain strategic competition between firms such as Boeing and Airbus

Is another name for Ricardo’s comparative advantage theory?

Difference in environmental standards or other government regulations among nations ?

have been eliminated by the nations participating in NAFTA

have no impact on patterns of international trade

have tended to make U.S steel companies more competitive internationally

can affect production costs and thus alter comparative advantages and trade patterns

have been eliminated by the nations participating in NAFTA

Declining costs per unit of output results from international trade especially if ?

International trade affords producers monopoly power

National governments levy imports tariffs and quotas

Producing goods entails increasing costs

Economies of scale exist for producers

By reducing the volume of trade transportation costs tend to ?

ensure that the process of product price equalization and factor price equalization are complete

stop the process of product price equalization and factor price equalization before they are complete:

ensure that the process of product price equalization and factor price equalization are complete

eliminate all of the feasible gains from international trade

maximize all of the feasible gains from international trade

By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ?

The gains from trade to be greater than when there are no transportation costs

The prices of trade goods to be lower than when there are no transportation costs

specialization to stop when the production costs of the trading partners equalize

The volume of trade to be less than when there are no transportation costs

The gains from trade to be greater than when there are no transportation costs

Boeing aircraft company was able to over its production costs of the first – jumbo jetll in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates ?

A transfer of wealth from domestic consumer to domestic producer as the result of trade

How economies of scale make possible a larger variety of products in international trade

A transfer of wealth from domestic consumer to domestic producer as the result of trade

How a natural monopoly is forced to behave more competitively with international trade

How a natural monopoly is forced to behave less competitively with international trade

Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?

wages should fall and rents should raise in Country A

wages and rents should fall in Country A

wages and rents should rise in Country A

wages should rise and rents should fall in Country A

wages should fall and rents should raise in Country A

Advocates of industrial policy maintain that government should ?

provide loans to domestic workers in exporting industries

pursue free trade as a policy that leads to maximum global efficiency

grant subsidies to firms offering potential comparative advantage

provide loans to domestic workers in exporting industries

increase interest rates on loans made to firms in import-competing industries

According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?

similar endowments of natural resources

According to the Laffer curve, as tax rates increase tax revenue ?

initially increase and then decrease

initially decrease and then increase.

According to the Heckscher-Ohlin model ?

The scarce factor necessarily gains from trade

everyone automatically gains from trade

The gainers from trade outnumber the losers from trade

The scarce factor necessarily gains from trade

According to the factor price equalization theorem, the ________ factor should oppose free. trade policies in any given country?

can’t tell without more information

According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ?

Import products that are land-intensive

Devote excessive amounts of resources to agricultural production

Devote insufficient amounts of resources to agricultural production

Export products that are land-intensive

Import products that are land-intensive

According to Supply-side economists. if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?

aggregate supply will increase will increase aggregate output will increase and the price level will increase

aggregate supply will increase will increase aggregate demand will decrease and the price level will decrease

aggregate supply will increase will increase aggregate output will increase and the price level will decrease

aggregate supply will increase will increase aggregate output will increase and the price level will increase

both aggregate supply and demand will increase will increase and the price level will increase

According to supply-side economists, as tax rates are reduced, labor supply should increase. This implies that ?

there is no income effect when tax rates are changed

the income effect of a wage change is greater than the substitution effect of a wage change.

there is no substitution effect when tax rates are changed

the substitution effect of a wage change is greater than the income effect of a wage change

A product will be traded only if the pre-trade price difference between the two countries ?

equals the cost of transporting it between them

is less than the cost of transporting it between them

is greater than the cost of transporting it between them equals the cost of transporting it between them

equals the cost of transporting it between them

more information in needed to answer this

A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work, save and invest. These economists are?

rational-expectations economists.

50 + Mcqs in Supply-Side Policies in Economics Page 1 McqOptions

1.	Which of the following statements supports deregulation of industries ?
A.	Technological change has made it possible for many industries to become more competitive
B.	Because few real natural monopolies exist, there is rarely a reason for government regulation.
C.	Many instances of government regulation have succeeded in reducing competition in industries where competition may be beneficial
D.	All of the above
Answer» E.

Discussion

2.	Which of the following would be considered a supply-side policy ?
A.	An increase in the minimum wage that would cause consumer spending to increase
B.	investment tax credits for businesses to encourage investment
C.	Restrictions placed on the amount that can be imported.
D.	An increase in government spending that would lead to increased aggregate demand
Answer» C. Restrictions placed on the amount that can be imported.

Discussion

3.	Which trade theory contends that a country that initially develops and exports a new product may eventually become an importer of it and may no longer manufacture the product ?
A.	Theory of factor endowments
B.	Theory of overlapping demands
C.	Economies of scale theory
D.	Product life cycle theory
Answer» E.

Discussion

4.	Wassily Leontief’s results can be interpreted as ?
A.	evidence against the Ricardi an model
B.	evidence against the Heckscher-Ohl in model
C.	support for the Ricardian model
D.	support for the Heckcher Ohlin model
Answer» C. support for the Ricardian model

Discussion

5.	Wassily Leontief used an input output table in order to test the ?
A.	Ricardian theory of comparative advantage
B.	Heckscher Ohl in theory of comparative advantage
C.	Linder theory of overlapping demand
D.	All of the above
Answer» C. Linder theory of overlapping demand

Discussion

6.	The trade model of the Swedish economies Heckscher and Ohlin maintains that ?
A.	Absolute advantage determines the distribution of the gains from trade
B.	Comparative advantage determines the distribution of the gains from trade
C.	The division of labor is limited by the size of the world market
D.	A country exports goods for which its resource endowments are most suited
Answer» E.

Discussion

7.	The theory of overlapping demand predicts that trade in manufactured goods is unimportant for countries with very different ?
A.	Tastes and preferences
B.	Expectations of future interest rate levels
C.	Per-capita income levels
D.	Labor productivities
Answer» D. Labor productivities

Discussion

8.	The success of regional and urban policies has been limited by ?
A.	bureaucracy
B.	bad luck
C.	poor communications
D.	the low level of government grants and by the fact that some projects would have gone ahead anyway
Answer» E.

Discussion

9.	The product cycle theory of trade is essentially a ?
A.	static, short run trade theory
B.	dynamic long run trade theory
C.	zero-sum theory of trade
D.	negative-sum theory of trade
Answer» C. zero-sum theory of trade

Discussion

10.	The Heckshcer-Ohl assumes that are indentical between countries?
A.	tastes and preferences
B.	technology levels
C.	factor indowments
D.	Both A and B
Answer» E.

Discussion

11.	The Heckscher-Ohl in model rules out the classical model’s basis for trade by assuming that _________ is (are) identical between countries?
A.	factor endowments
B.	factor intensities
C.	technology
D.	opportunity costs
Answer» D. opportunity costs

Discussion

12.	The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries ?
A.	Economies of large-scale production
B.	Relative abundance of various resources
C.	Relative costs of labor
D.	Research and development expenditures
Answer» C. Relative costs of labor

Discussion

13.	The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?
A.	tastes
B.	technology
C.	factor/resource
D.	opportunity cost
Answer» D. opportunity cost

Discussion

14.	The factor endowment theory was pioneered by ?
A.	Adam smith
B.	David Ricardo
C.	Wassily Leontief
D.	Eli Heckscher and Bertil Ohlin
Answer» E.

Discussion

15.	The factor endowment model of international trade was developed by ?
A.	Adam Smith
B.	David Ricardo
C.	John Stuart Mill
D.	Eli Heckscher and Bertil Ohlin
Answer» E.

Discussion

16.	The comparative advantage model of Ricardo was based on ?
A.	intraindustry specialization and trade
B.	interindustry specialization and trade
C.	demand conditions underlying specialization and trade
D.	income conditions underlying specialization and trade
Answer» C. demand conditions underlying specialization and trade

Discussion

17.	The analyzes the income distribution effects of trade in the short run when resources are immobile among industries ?
A.	Stolpher-Samuelson theory
B.	factor endowment theory
C.	specific factors theory
D.	overlapping demand theory
Answer» D. overlapping demand theory

Discussion

18.	Reaganomics was a radical shift in policy aimed at directly tackling ?
A.	the charities economy
B.	the demand side of the economy
C.	the underground economy
D.	the supply side of the country
Answer» E.

Discussion

19.	Privatization is the transfer of ?
A.	publicly held stock to private individuals
B.	corporately owned businesses to individuals
C.	government businesses to the private sector.
D.	privately owned businesses to the government sector
Answer» D. privately owned businesses to the government sector

Discussion

20.	One of the predictions of the Heckscher-Ohlin model is that ?
A.	countries with different factor endowments but similar technologies and preferences will have a strong basis for trade with each other
B.	countries with tend to specialize but not completely in their comparative advantage good
C.	reciprocal demand leads to an equilibrium terms of trade by inducing change in both demand and supply
D.	All of the above
Answer» E.

Discussion

21.	New classical economists advocate reducing welfare payments to people who are unemployed or single parents. The economic reasoning used was that this would ?
A.	reduce poverty
B.	reduce unemployment
C.	weaken the power of trade unions
D.	help small businesses
Answer» C. weaken the power of trade unions

Discussion

22.	Leontief’s result were considered paradoxical because the United Stated was believed to be ?
A.	technologically efficient relative to the rest of the world
B.	capital abundant relative to the rest of the world
C.	labor abundant relative to the rest of the world
D.	All of the above
Answer» C. labor abundant relative to the rest of the world

Discussion

23.	Intra-industry trade theory ?
A.	Explains why the United States might export autos and import clothing
B.	Explains why the United States might export and import differentiated versions of the same product such as different types of autos
C.	Assumes that transport costs are very low or do not exist
D.	ignores seasonal considerations for agricultural goods
Answer» C. Assumes that transport costs are very low or do not exist

Discussion

24.	Interventionist policies to restore regional imbalance focus on ?
A.	subsidies to encourage firms that moves
B.	tax concessions for firms that move.
C.	improved infrastructure
D.	all of the above
Answer» E.

Discussion

25.	Interindustry trade can be explained by all of the following except ?
A.	high transportation costs as a proportion of product value
B.	different growing seasons of the year for agricultural products
C.	product differentiation for good such as automobiles
D.	high per capita incomes in exporting countries
Answer» E.

Discussion

26.	Industrial policies intended to foster comparative advantage for domestic industries could result in the implementation of ?
A.	research and development subsidies
B.	loan guarantees
C.	low interest rate loans
D.	All of the above
Answer» E.

Discussion

27.	In his empirical test of comparative advantage Wassily Leontief found that ?
A.	U.S exports are capital intensive relative to U.S imports
B.	U.S imports are labor intensive relative to U.S exports
C.	U.S exports are neither labor nor capital intensive
D.	None of the above
Answer» E.

Discussion

28.	In his empirical tests, Wassily Leontief used an input-output table to ?
A.	calculate the capital and labor required to produce $1 million of U.S exports and imports
B.	calculate the labor productivity of America workers relative to foreign workers
C.	calculate the capital productivity of American capital relative to foreign capital
D.	All of the above
Answer» B. calculate the labor productivity of America workers relative to foreign workers

Discussion

29.	If tastes are identical between countries, then comparative advantage is determined by ?
A.	supply condition only
B.	demand conditions only
C.	supply and demand conditions
D.	can’t tell without more information
Answer» B. demand conditions only

Discussion

30.	For the United States empirical studies indicate that over the past two hundred years the cost of international transportation relative to the value of U.S imports has ?
A.	increased
B.	Decreased
C.	Not changed
D.	Any of the above
Answer» C. Not changed

Discussion

31.	Dynamic comparative advantage theory ?
A.	helps explain why some nations use industrial policy to support potentially competitive new firms
B.	cannot explain strategic competition between firms such as Boeing and Airbus
C.	Is another name for Ricardo’s comparative advantage theory?
D.	None of the above
Answer» B. cannot explain strategic competition between firms such as Boeing and Airbus

Discussion

32.	Difference in environmental standards or other government regulations among nations ?
A.	have no impact on patterns of international trade
B.	have tended to make U.S steel companies more competitive internationally
C.	can affect production costs and thus alter comparative advantages and trade patterns
D.	have been eliminated by the nations participating in NAFTA
Answer» D. have been eliminated by the nations participating in NAFTA

Discussion

33.	Declining costs per unit of output results from international trade especially if ?
A.	International trade affords producers monopoly power
B.	National governments levy imports tariffs and quotas
C.	Producing goods entails increasing costs
D.	Economies of scale exist for producers
Answer» E.

Discussion

34.	By reducing the volume of trade transportation costs tend to ?
A.	stop the process of product price equalization and factor price equalization before they are complete:
B.	ensure that the process of product price equalization and factor price equalization are complete
C.	eliminate all of the feasible gains from international trade
D.	maximize all of the feasible gains from international trade
Answer» B. ensure that the process of product price equalization and factor price equalization are complete

Discussion

35.	By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ?
A.	The prices of trade goods to be lower than when there are no transportation costs
B.	specialization to stop when the production costs of the trading partners equalize
C.	The volume of trade to be less than when there are no transportation costs
D.	The gains from trade to be greater than when there are no transportation costs
Answer» D. The gains from trade to be greater than when there are no transportation costs

Discussion

36.	Boeing aircraft company was able to over its production costs of the first – jumbo jetll in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates ?
A.	How economies of scale make possible a larger variety of products in international trade
B.	A transfer of wealth from domestic consumer to domestic producer as the result of trade
C.	How a natural monopoly is forced to behave more competitively with international trade
D.	How a natural monopoly is forced to behave less competitively with international trade
Answer» B. A transfer of wealth from domestic consumer to domestic producer as the result of trade

Discussion

37.	Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?
A.	wages and rents should fall in Country A
B.	wages and rents should rise in Country A
C.	wages should rise and rents should fall in Country A
D.	wages should fall and rents should raise in Country A
Answer» D. wages should fall and rents should raise in Country A

Discussion

38.	Advocates of industrial policy maintain that government should ?
A.	pursue free trade as a policy that leads to maximum global efficiency
B.	grant subsidies to firms offering potential comparative advantage
C.	provide loans to domestic workers in exporting industries
D.	increase interest rates on loans made to firms in import-competing industries
Answer» C. provide loans to domestic workers in exporting industries

Discussion

39.	According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?
A.	similar endowments of natural resources
B.	similar levels of technology
C.	similar per-capita incomes
D.	similar wage levels
Answer» D. similar wage levels

Discussion

40.	According to the Laffer curve, as tax rates increase tax revenue ?
A.	initially increase and then decrease
B.	decrease continuously.
C.	rise continuously
D.	initially decrease and then increase.
Answer» B. decrease continuously.

Discussion

41.	According to the Heckscher-Ohlin model ?
A.	everyone automatically gains from trade
B.	The gainers from trade outnumber the losers from trade
C.	The scarce factor necessarily gains from trade
D.	None of the above
Answer» C. The scarce factor necessarily gains from trade

Discussion

42.	According to the Heckscher-Ohlin model the source of comparative advantage is a country’s ?
A.	technology
B.	advertising
C.	factor endowments
D.	both (a) and (c)
Answer» D. both (a) and (c)

Discussion

43.	According to the factor price equalization theorem, the ________ factor should oppose free. trade policies in any given country?
A.	abundant
B.	scarce
C.	neither
D.	can’t tell without more information
Answer» C. neither

Discussion

44.	According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ?
A.	Devote excessive amounts of resources to agricultural production
B.	Devote insufficient amounts of resources to agricultural production
C.	Export products that are land-intensive
D.	Import products that are land-intensive
Answer» D. Import products that are land-intensive

Discussion

45.	According to Supply-side economists. if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?
A.	aggregate supply will increase will increase aggregate demand will decrease and the price level will decrease
B.	aggregate supply will increase will increase aggregate output will increase and the price level will decrease
C.	aggregate supply will increase will increase aggregate output will increase and the price level will increase
D.	both aggregate supply and demand will increase will increase and the price level will increase
Answer» C. aggregate supply will increase will increase aggregate output will increase and the price level will increase

Discussion

46.	According to supply-side economists, as tax rates are reduced, labor supply should increase. This implies that ?
A.	there is no income effect when tax rates are changed
B.	the income effect of a wage change is greater than the substitution effect of a wage change.
C.	there is no substitution effect when tax rates are changed
D.	the substitution effect of a wage change is greater than the income effect of a wage change
Answer» E.

Discussion

47.	A way of helping depressed regions by having lower wages lower local taxes and lower unemployment benefit has been suggested as ?
A.	market-orientated economists
B.	left-wing theorists
C.	Keynesian.
D.	new-Keynesian
Answer» B. left-wing theorists

Discussion

48.	A way helping depressed regions by having wage subsidies lower business taxes and capital subsidies has been suggested as ?
A.	New classical economists.
B.	Left wing theorists
C.	interventionist policies.
D.	monetarists.
Answer» D. monetarists.

Discussion

49.	A product will be traded only if the pre-trade price difference between the two countries ?
A.	is less than the cost of transporting it between them
B.	is greater than the cost of transporting it between them equals the cost of transporting it between them
C.	equals the cost of transporting it between them
D.	more information in needed to answer this
Answer» C. equals the cost of transporting it between them

Discussion

50.	A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work, save and invest. These economists are?
A.	Supply-side economics
B.	neo-Keynesian economists
C.	rational-expectations economists.
D.	new classical economists.
Answer» B. neo-Keynesian economists

Discussion

Explore topic-wise MCQs in Economics.

Which of the following statements supports deregulation of industries ?

Which of the following would be considered a supply-side policy ?

Which trade theory contends that a country that initially develops and exports a new product may eventually become an importer of it and may no longer manufacture the product ?

Wassily Leontief’s results can be interpreted as ?

Wassily Leontief used an input output table in order to test the ?

The trade model of the Swedish economies Heckscher and Ohlin maintains that ?

The theory of overlapping demand predicts that trade in manufactured goods is unimportant for countries with very different ?

The success of regional and urban policies has been limited by ?

The product cycle theory of trade is essentially a ?

The Heckshcer-Ohl assumes that are indentical between countries?

The Heckscher-Ohl in model rules out the classical model’s basis for trade by assuming that _________ is (are) identical between countries?

The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries ?

The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?

The factor endowment theory was pioneered by ?

The factor endowment model of international trade was developed by ?

The comparative advantage model of Ricardo was based on ?

The analyzes the income distribution effects of trade in the short run when resources are immobile among industries ?

Reaganomics was a radical shift in policy aimed at directly tackling ?

Privatization is the transfer of ?

One of the predictions of the Heckscher-Ohlin model is that ?

New classical economists advocate reducing welfare payments to people who are unemployed or single parents. The economic reasoning used was that this would ?

Leontief’s result were considered paradoxical because the United Stated was believed to be ?

Intra-industry trade theory ?

Interventionist policies to restore regional imbalance focus on ?

Interindustry trade can be explained by all of the following except ?

Industrial policies intended to foster comparative advantage for domestic industries could result in the implementation of ?

In his empirical test of comparative advantage Wassily Leontief found that ?

In his empirical tests, Wassily Leontief used an input-output table to ?

If tastes are identical between countries, then comparative advantage is determined by ?

For the United States empirical studies indicate that over the past two hundred years the cost of international transportation relative to the value of U.S imports has ?

Dynamic comparative advantage theory ?

Difference in environmental standards or other government regulations among nations ?

Declining costs per unit of output results from international trade especially if ?

By reducing the volume of trade transportation costs tend to ?

By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ?

Boeing aircraft company was able to over its production costs of the first – jumbo jetll in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates ?

Advocates of industrial policy maintain that government should ?

According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?

According to the Laffer curve, as tax rates increase tax revenue ?

According to the Heckscher-Ohlin model ?

According to the Heckscher-Ohlin model the source of comparative advantage is a country’s ?

According to the factor price equalization theorem, the ________ factor should oppose free. trade policies in any given country?

According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ?

According to Supply-side economists. if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?

According to supply-side economists, as tax rates are reduced, labor supply should increase. This implies that ?

A way of helping depressed regions by having lower wages lower local taxes and lower unemployment benefit has been suggested as ?

A way helping depressed regions by having wage subsidies lower business taxes and capital subsidies has been suggested as ?

A product will be traded only if the pre-trade price difference between the two countries ?

A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work, save and invest. These economists are?