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International Macroeconomics 4th edition by Robert
C. Feenstra, Alan M. Taylor Test Bank
1. Which of the following is NOT a reason why countries trade goods with one another?
A) differences in technology used in different countries
B) differences in countries' total amount of resources
C) the proximity of countries to one another
D) differences in countries' languages and cultures
2. David Ricardo's model explains trade based on:
A) labor supply.
B) technology.
C) population.
D) government control.
3. Which of the following is the MOST likely explanation for a Detroit
construction company's imports of concrete blocks made in Windsor,
Ontario?
A) the Ricardian model
B) offshoring
C) technology
D) proximity
4. What is the MOST likely reason why neighboring nations engage in trade?
A) labor availability
B) similar tastes and preferences
C) proximity
D) shared membership in a free-trade area
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5. A country's factors of production includes:
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A) its labor, capital, natural resources, and markets.
B) only its labor and capital.
C) only its capital and natural resources.
D) its labor, capital, and natural resources.
6. Which of the following is NOT considered to be a factor of production?
A) labor
B) capital
C) natural resources
D) government
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7. When a firm in one nation purchases unfinished products internationally and
addsfurther processing to sell in the domestic market, this is known as:
A) barter.
B) offshoring.
C) factor movement.
D) marketing arrangements.
8. In some cases, a country can export a good without having any advantage in the
naturalresources needed to produce it. Which of the following is an example of this
type of export?
A) Austrian exports of snowboards
B) U. S. exports of ―icewine‖
C) Japanese exports of Toyotas
D) Canadian exports of lumber
9. In some cases, a country can export a good without having any advantage in the
naturalresources needed to produce it. Which of the following is an example of this
type of export?
A) United Arab Emirates's exports of high-quality snowboards
B) U. S. exports of Caterpillar bulldozers
C) French exports of wine
D) Canadian exports of lumber
10. In trade, if a nation has the technology to produce a good with fewest resources (such
asGermany's production of snowboards), it is known as a(n):
A) absolute advantage.
B) technology advantage.
C) comparative advantage.
D) resource advantage.
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International Macroeconomics 4th edition by Robert
C. Feenstra, Alan M. Taylor Test Bank
1. Which of the following is NOT a reason why countries trade goods with one another?
A) differences in technology used in different countries
B) differences in countries' total amount of resources
C) the proximity of countries to one another
D) differences in countries' languages and cultures
2. David Ricardo's model explains trade based on:
A) labor supply.
B) technology.
C) population.
D) government control.
3. Which of the following is the MOST likely explanation for a Detroit
construction company's imports of concrete blocks made in Windsor,
Ontario?
A) the Ricardian model
B) offshoring
C) technology
D) proximity
4. What is the MOST likely reason why neighboring nations engage in trade?
A) labor availability
B) similar tastes and preferences
C) proximity
D) shared membership in a free-trade area
Page 1
,Medstudy.com
5. A country's factors of production includes:
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,Medstudy.com
A) its labor, capital, natural resources, and markets.
B) only its labor and capital.
C) only its capital and natural resources.
D) its labor, capital, and natural resources.
6. Which of the following is NOT considered to be a factor of production?
A) labor
B) capital
C) natural resources
D) government
Page 1
, Medstudy.com
7. When a firm in one nation purchases unfinished products internationally and
addsfurther processing to sell in the domestic market, this is known as:
A) barter.
B) offshoring.
C) factor movement.
D) marketing arrangements.
8. In some cases, a country can export a good without having any advantage in the
naturalresources needed to produce it. Which of the following is an example of this
type of export?
A) Austrian exports of snowboards
B) U. S. exports of ―icewine‖
C) Japanese exports of Toyotas
D) Canadian exports of lumber
9. In some cases, a country can export a good without having any advantage in the
naturalresources needed to produce it. Which of the following is an example of this
type of export?
A) United Arab Emirates's exports of high-quality snowboards
B) U. S. exports of Caterpillar bulldozers
C) French exports of wine
D) Canadian exports of lumber
10. In trade, if a nation has the technology to produce a good with fewest resources (such
asGermany's production of snowboards), it is known as a(n):
A) absolute advantage.
B) technology advantage.
C) comparative advantage.
D) resource advantage.
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