View the step-by-step solution to:

Question 1 1. Internal economies of scale results in Answer A. downward sloping MC curve. upward sloping MC curve. downward sloping AC curve. upward...

International Trade- 10 Multiple questions( no explanation necessary)
Question 1 1. Internal economies of scale results in Answer A. downward sloping MC curve. B. upward sloping MC curve. C. downward sloping AC curve. D. upward sloping AC curve. Question 2 1. The gains from trade in the monopolistic competition model arises due to Answer A. only increasing variety. B. only lower price. C. diffusion of knowledge across countries. D. both increasing variety and lower price. Question 3 1. According to the gravity equation, trade between country 1 and 2 Answer A. increases as the distance between the two countries increases. B. depends only on the GDP of the importing country. C. depends on the GDP of both countries. D. depends only on the GDP of the exporting country. Question 4 1. According to the Infant Industry Argument, Answer A. the government should protect industries that employ a lot of poor people. B. the government should protect an industry until it is competitive enough to compete with foreign companies. C. the government should always protect less productive industries. D. the government should protect industries that are essential for national security.
Background image of page 1
Question 5 1. In the monopolistic competition model with heterogeneous firms, Answer A. high productivity firms charge a lower price relative to low productivity firms. B. high productivity firms sell less relative to low productivity firms. C. high productivity firms have lower profits relative to low productivity firms. D. high productivity firms sell more varieties relative to low productivity firms. Question 6 1. Firms in developed countries will offshore more to developing countries if Answer A. property right protection improves in the developing countries. B. communication between developed and developing countries becomes more expensive. C. transportation between developed and developing countries becomes more expensive. D. the developing countries impose tariffs on their imports. Question 7 1. In the general Grossman and Rossi-Hansberg model of offshoring, the relative wage of low-skilled workers goes up if Answer A. the sum of labour supply and relative price effects dominates productivity effect. B. the productivity effect dominates the sum of labour supply and relative price effects. C. the price of the good whose production is being offshored does not change. D. the labour supply effect dominates the relative price effect. Question 8 1. With the rise of service offshoring, the conflict is between Answer A. a worker who knows how to use a computer and one who does not. B. an unskilled and a skilled worker. C. a worker whose job requires being physically close to customers and one whose job does not. D. owners of capital and owners of land.
Background image of page 2
Show entire document
Sign up to view the entire interaction

Top Answer

Here is a detailed explanation... View the full answer

8441868.doc

1. C
2. D
3. C
4. B
5. A
6. A
7. B
8. C
9. C
10. A

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online