Should international transportation costs decrease

Assignment Help Business Economics
Reference no: EM13734322

1. For the United States, empirical studies indicate that over the past two decades the cost of international transportation relative to the value of U.S. imports has:

A) Increased

B) Decreased

C) Not changed

D) None of the above

2. Should international transportation costs decrease, the effect on international trade would include:

A) An increase in the volume of trade

B) A smaller gain from trade

C) A decline in the income of home producers

D) A decrease in the level of specialization in production.

3. Proponents of ____ maintain that government should enact policies that encourage the development of emerging, "sunrise" industries.

A) Product life cycle policy

B) Static comparative advantage policy

C) Intraindustry trade policy

D) Industrial policy

4. The simultaneous import and export of computers by Germany is an example of:

A) Intraindustry trade

B) Interindustry trade

C) Perfect competition

D) Imperfect competition

5. Intraindustry trade can be explained by product differentiation, economies of scale, seasons of the year, and transportation costs.

A) True

B) False

6. According to the factor price equalization theorem, if Country A is labor abundant, then once trade opens {Note in the following answers Wages = price per unit of labor and Rents = price per unit of capital}

A) wages and rents should fall in Country A.

B) wages should fall and rents should rise in Country A.

C) wages should rise and rents should fall in Country A.

Reference no: EM13734322

Questions Cloud

Explain abrupt and mysterious disappearance of mayan : what happened to the Mayan people, but theories abound and include varied possible alternatives to explain the abrupt and mysterious disappearance of the Mayan civilization.
Utility function for silver bells and cockle shells : Jane, like Mary, grows silver bells and cockle shells in her garden, only she doesn’t have any space constraints. She does have a money constraint: she can only spend 500 pence (p) on flowers. Like Mary, Jane has a utility function for silver bells (..
Various business statistics and financial ratios : Go to BizStats by BizMiner and select "Financial Benchmark Reports" - Select "Sole Proprietorship" or "Corporation" or "S Corp" - Select your Industry (for example, Retail - food & beverage), then you will see various business statistics and finan..
Factor of production-labor theory of value is basis of cost : If a nation has an open economy, it means that the nation: In Adam Smith's trade model, labor is the only factor of production and the labor theory of value is the basis for cost. According to Smith's trade model in a two-nation, two-product world, a..
Should international transportation costs decrease : For the United States, empirical studies indicate that over the past two decades the cost of international transportation relative to the value of U.S. imports has: Should international transportation costs decrease, the effect on international trade..
Equilibrium price-quantity and price elasticity of demand : The demand for a product is Qd = 100 - 4P +3Px and supply is Qs = 10 +2P, where Q is the quantity of the product in thousands of units, P is the price of the product, and Px is the price of another good. When Px = 40, the equilibrium price of the pro..
Explain the impact on the demand curve-supply curve or both : In the market for tacos, explain the impact on the demand curve, supply curve, or both. If the market started in equilibrium, determine if the new market equilibrium price and quantity are above, below, or indeterminate with respect to the starting e..
According to ricardo the immediate basis for trade stems : Under Smith's theory of international trade a country will completely specialize in the good it has an absolute advantage in producing. According to Ricardo the immediate basis for trade stems from _________________ cost differences between nations.
Savings and investment according to the classical economists : The economy is made up of C and I and is currently at full employment. If consumption is $5 trillion while savings is $1 trillion, what is current investment according to the Classical economists? Suppose consumption falls by $500 billion what will h..

Reviews

Write a Review

 

Business Economics Questions & Answers

  What is the present value of this deferred- funds flow

A sum of $16,000per year will be received uniformly over a five-year period beginning two years from today. What is the present value of this deferred- funds flow if interested is compounded continuously at a normal rate of 9%.

  Describe the effect of each of the following events

Describe the effect of each of the following events on the demand or supply of gasoline in the USA. Further indicate the likely direction in the amount of gasoline exchanged AND the expected market price.

  Output and the cost level play in this adjustment

Explicate Illustrate what will happen to output and the cost level play in this adjustment.

  A price- setting firm wilpen company produces nearly 80 of

a price- setting firm wilpen company produces nearly 80 of all tennis balls purchased in united states. wilpen

  What will be this monopolist total economic profit

What price will the firm charge in each market? Based solely on these two prices, which market has the higher price elasticity of demand? What will be this monopolist's total economic profit?

  Q1 suppose we use two inputs lets say capital and labor and

q1. suppose we use two inputs lets say capital and labor and the price of capital is pk and the price of labor is pl.

  Manager of a corporate division faces the possibility

the manager wins with a payoff of 20, and the auditor loses with a payoff of - 20 . If the actions don't match, the auditor wins with a payoff of 20, and the manager loses with a payoff of - 20. Diagram this game and comment on the equilibrium.

  How information affect your calculation of inflation rate

If you were to learn about a bottle of gatorade increased in size from 2009 to 2010, should that information affect your calculation of the inflation rate. If so, how.

  In what ways do you think their behavior would differ

In what ways do you think their behavior would differ from comparable doctors in a not-for-profit hospital in the US?

  There is no way to determine what has happened to supply

Camille's Creations and Julia's Jewels both sell beads in a competitive market. If at the market price of $5, both are running out of beads to sell (they can't keep up with the quantity demanded at that price), then we would expect both Camille's and..

  Quantity of burgers demanded in equilibrium

Illustrate what is the quantity of burgers demanded in equilibrium.

  Explain how are money cost and opportunity cost

Explain how are money cost and opportunity cost related to each other. If markets function well, they are closely related. They are always identical in any economic system.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd