AGB Week 3 Homework
________ refers to a situation where a government does not attempt to influence through quotas or
duties what its citizens can buy from another country. - correct answer ✔✔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. - correct answer
✔✔New trade theory
________ supports the idea that countries should export more than what they import. - correct answer
✔✔Mercantilism
________ argued that countries should specialize in the production of goods for which they have an
absolute advantage. - correct answer ✔✔Adam Smith
The production possibility frontier will be ________ if constant return to specialization is observed. -
correct answer ✔✔a straight line
The Heckscher-Ohlin theory predicts that countries will: - correct answer ✔✔export those goods that
make intensive use of factors that are locally abundant.
The ________ argues that a large proportion of the world's new products had been developed by U.S.
firms. - correct answer ✔✔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. - correct answer ✔✔economies of scale
Which of the following refers to a situation where a government does not attempt to influence through
quotas or duties what its citizens can buy from another country? - correct answer ✔✔Free trade
________ refers to a situation where a government does not attempt to influence through quotas or
duties what its citizens can buy from another country. - correct answer ✔✔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. - correct answer
✔✔New trade theory
________ supports the idea that countries should export more than what they import. - correct answer
✔✔Mercantilism
________ argued that countries should specialize in the production of goods for which they have an
absolute advantage. - correct answer ✔✔Adam Smith
The production possibility frontier will be ________ if constant return to specialization is observed. -
correct answer ✔✔a straight line
The Heckscher-Ohlin theory predicts that countries will: - correct answer ✔✔export those goods that
make intensive use of factors that are locally abundant.
The ________ argues that a large proportion of the world's new products had been developed by U.S.
firms. - correct answer ✔✔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. - correct answer ✔✔economies of scale
Which of the following refers to a situation where a government does not attempt to influence through
quotas or duties what its citizens can buy from another country? - correct answer ✔✔Free trade
