Internal economies of scale will ________ average cost when output is ________ by ________.
A) reduce; increased; a firm
B) increase; increased; a firm
C) reduce; increased; the industry
D) increase; increased; the industry
E) reduce; reduce; the industry
Question 2 - What does empirical research suggest about the existence of pollution havens?
What will be an ideal response?
Question 3 - The Heckscher-Ohlin Theorem predicts
A) who benefits and who loses from trade.
B) which factors are abundant.
C) the income distribution effects of trade.
D) which goods will be exported.
E) the importance of intraindustry trade.
Question 4 - Which of the following is not correct for a small open economy?
A) She cannot improve her BOT.
B) She cannot affect the international price of goods.
C) She cannot affect the foreign interest rate.
D) All of the above.
Question 5 - What is the United States primary trade promotion initiative with Africa?
What will be an ideal response?
Question 6 - With fixed exchange rates, the adjustment to changes in international monetary conditions comes through
A) exchange rate changes.
B) exchange rate changes and international money flows.
C) international money flows.
D) None of the above.
Question 7 - Is there one optimal environmental standard for the entire world? If not, how might using trade barriers to enforce country-specific environmental standards reduce overall well being?
What will be an ideal response?
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