MCQCh_03 - CHAPTER 3SOURCES OF COMPARATIVE ADVANTAGE...

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CHAPTER 3—SOURCES OF COMPARATIVE ADVANTAGE MULTIPLE CHOICE 1. Which of the following suggests that a nation will export the commodity in the production of which a great deal of its relatively abundant and cheap factor is used? a. The Linder theory b. The product life cycle theory c. The MacDougall theory d. The Heckscher-Ohlin theory 2. According to Staffan Linder, trade between two countries tends to be most pronounced when the countries: a. Find their tastes and preferences to be quite harmonious b. Experience economies of large-scale production over large output levels c. Face dissimilar relative abundances of the factors of production d. Find their per capita income levels to be approximately the same 3. Assume the cost of transporting autos from Japan to Canada exceeds the pretrade price difference for autos between Japan and Canada. Trade in autos is: a. Impossible b. Possible c. Highly profitable d. Moderately profitable 4. Eli Heckscher and Bertil Ohlin are associated with the theory of comparative advantage that
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This note was uploaded on 01/17/2012 for the course BUSINESS BU2005 taught by Professor Smith during the Three '10 term at Bond College.

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MCQCh_03 - CHAPTER 3SOURCES OF COMPARATIVE ADVANTAGE...

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