An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q. What is marginal cost equal to when Q = 10? What will be an ideal response? ANSWER MC = 4 for any Q
Date: September 10th, 2020
A point to the left of the BP curve would represent A) a balance of payments deficit. B) a balance of payments surplus. C) internal disequilibrium. D) Both A and C. ANSWER B
Date: September 10th, 2020
Describe the product cycle, including addressing the various inputs that are required over time and the resulting production location decisions. What will be an ideal response? ANSWER Manufactured products go through a product cycle in which inputs change over time. The early phase is characterized by experimentation in both the product and the manufacturing […]
Date: September 10th, 2020
In the Brander-Spencer model the subsidy raises profits by more than the subsidy because of A) the “multiplier” effect of government expenditures. B) the military-industrial complex. C) the forward and backward linkage effects of certain industries. D) the deterrent effect of the subsidy on foreign competition. E) the economies of scale once the company enters […]
Date: September 10th, 2020
What does the “brain drain” refer to and why is it a problem for developing countries? What will be an ideal response? ANSWER The brain drain refers to the migration of skilled workers from one country to another. It is a problem for developing countries because skilled workers are more likely to migrate from […]
Date: September 10th, 2020
The bulk of offshoring is vertical, relating to producing a component piece in an overall supply chain production. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The Single European Act was expected to create economic benefits by reducing the costs and risks of currency market transactions. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Which of the following could explain why the terms of trade of developing countries might deteriorate over time? A) Developing country exports consist mainly of manufactured goods. B) Developing country exports consist mainly of primary products. C) Commodity export prices are determined in highly competitive markets. D) Commodity export prices are solely determined by developing […]
Date: September 10th, 2020
The infant industry argument is that A) comparative advantage is irrelevant to economic growth. B) developing countries have a comparative advantage in agricultural goods. C) developing countries have a comparative advantage in manufacturing. D) developing countries have a potential comparative advantage in manufacturing. E) developing countries have no chance to compete with industrialized countries. […]
Date: September 10th, 2020
Which of the following is a critical element of the Heckscher-Ohlin model? A) That different goods display different factor intensities in their production. B) That some countries have no comparative advantage in anything. C) That trade may not be beneficial. D) All of the above. ANSWER A
Date: September 10th, 2020
