AGB 302 QUIZ 3 EXAM WITH
ACCURATE SOLUTIONS
refers to a situation where a government does not attempt to influence through quotas
or duties what its citizens can buy from another country - ANS-Free Trade
Stresses that in some cases countries specialize in the production and export of
particular products because the world market can support only a limited number of firms
- ANS-New trade theory
supports the idea that countries should export more than what they import - ANS-
Mercantilism
argued that countries should specialize in the production of goods for which they have
an absolute advantage. - ANS-adam smith
The production possibility frontier will be ________ if constant return to specialization is
observed - ANS-a straight line
export those goods that make intensive use of factors that are locally abundant. - ANS-
The Heckscher-Ohlin theory predicts that countries will:
The ________ argues that a large proportion of the world's new products had been
developed by U.S. firms. - ANS-product life-cycle theory
The variety of goods that a country can produce is limited by the size of the market in
industries where ________ are important. - ANS-economies of scale
Refers to a situation where a government does not attempt to influence through quotas
or duties what its citizens can buy from another country? - ANS-Free Trade
Which of the following is a major flaw associated with mercantilism? - ANS-Mercantilists
view trade as a zero-sum game
________ is a quota on trade imposed by the exporting country, typically at the request
of the importing country's government - ANS-Voluntary export restraint
limit imports over quota - ANS-Tariff rate quotas are common in agriculture, where their
goal is to:
ACCURATE SOLUTIONS
refers to a situation where a government does not attempt to influence through quotas
or duties what its citizens can buy from another country - ANS-Free Trade
Stresses that in some cases countries specialize in the production and export of
particular products because the world market can support only a limited number of firms
- ANS-New trade theory
supports the idea that countries should export more than what they import - ANS-
Mercantilism
argued that countries should specialize in the production of goods for which they have
an absolute advantage. - ANS-adam smith
The production possibility frontier will be ________ if constant return to specialization is
observed - ANS-a straight line
export those goods that make intensive use of factors that are locally abundant. - ANS-
The Heckscher-Ohlin theory predicts that countries will:
The ________ argues that a large proportion of the world's new products had been
developed by U.S. firms. - ANS-product life-cycle theory
The variety of goods that a country can produce is limited by the size of the market in
industries where ________ are important. - ANS-economies of scale
Refers to a situation where a government does not attempt to influence through quotas
or duties what its citizens can buy from another country? - ANS-Free Trade
Which of the following is a major flaw associated with mercantilism? - ANS-Mercantilists
view trade as a zero-sum game
________ is a quota on trade imposed by the exporting country, typically at the request
of the importing country's government - ANS-Voluntary export restraint
limit imports over quota - ANS-Tariff rate quotas are common in agriculture, where their
goal is to:
