The product life cycle theory of comparative advantage predicts that a new product will first be produced and exported by:
a. the nation that was first to demand the new product.
b. the first firm to successfully copy the technology.
c. the nation in which it was invented.
d. the countries with the most stable economy and fewest restrictions on foreign trade.
e. the company with the most extensive network of international distributors for the product.
QUESTION 2The increased participation of married women in the work force reflects the increasing opportunity cost of not working.
Indicate whether the statement is true or false
QUESTION 3When a firm's average revenue falls, the marginal revenue also falls and is less than the average revenue.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4Control of a scarce resource or input can serve as an entry barrier.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5Which of the following statements, in the context of U.S. exports, is true?
a. The U.S. exports products produced in the low wage industries.
b. Primary products account for the largest share of U.S. exports to developed nations.
c. The U.S. mainly exports labor intensive goods.
d. Most U.S. exports are produced in high-wage industries.
e. A bulk of U.S. exports to developing nations comprise of perishable commodities.
QUESTION 6Gemma and Emily expect investments A and B to yield an annual return of 15 percent and 10 percent respectively. While Gemma invests in A, Emily invests in B. This implies that Gemma has a higher risk tolerance than Emily.
Indicate whether the statement is true or false
Quick Reply
