AGB 302 QUIZ 3 AGB 302 QUIZ 3,
Study online at https://quizlet.com/_5hvrs6
1. Free Trade refers to a situation where a government
does not attempt to influence through quo-
tas or duties what its citizens can buy from
another country
2. New trade theory Stresses that in some cases countries spe-
cialize in the production and export of par-
ticular products because the world market
can support only a limited number of firms
3. Mercantilism supports the idea that countries should ex-
port more than what they import
4. adam smith argued that countries should specialize in
the production of goods for which they
have an absolute advantage.
5. a straight line The production possibility frontier will be
________ if constant return to specializa-
tion is observed
6. The Heckscher-Ohlin theory predicts that export those goods that make intensive use
countries will: of factors that are locally abundant.
7. product life-cycle theory The ________ argues that a large propor-
tion of the world's new products had been
developed by U.S. firms.
8. economies of scale The variety of goods that a country can pro-
duce is limited by the size of the market in
industries where ________ are important.
9. Free Trade
1/3
Study online at https://quizlet.com/_5hvrs6
1. Free Trade refers to a situation where a government
does not attempt to influence through quo-
tas or duties what its citizens can buy from
another country
2. New trade theory Stresses that in some cases countries spe-
cialize in the production and export of par-
ticular products because the world market
can support only a limited number of firms
3. Mercantilism supports the idea that countries should ex-
port more than what they import
4. adam smith argued that countries should specialize in
the production of goods for which they
have an absolute advantage.
5. a straight line The production possibility frontier will be
________ if constant return to specializa-
tion is observed
6. The Heckscher-Ohlin theory predicts that export those goods that make intensive use
countries will: of factors that are locally abundant.
7. product life-cycle theory The ________ argues that a large propor-
tion of the world's new products had been
developed by U.S. firms.
8. economies of scale The variety of goods that a country can pro-
duce is limited by the size of the market in
industries where ________ are important.
9. Free Trade
1/3
