Which of the following is not a reason for international specialization?
a. some countries have educated, trained workers, while other countries have unskilled workers
b. tastes and preferences tend to be different in different countries
c. economies of scale can allow larger, specialized producers to operate at lower average cost
d. mineral resources are often concentrated in particular countries
e. the world price of a good is determined by the world supply and demand for it
E
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Economic theory in general, and trade theory in particular are replete with equivalencies
For example, it is argued that for any specific tariff one can find an equivalent ad valorem tariff; and that for any quota one can calculate a tariff equivalent. Discuss conditions or situations under which a specific and an ad valorem tariff are not equivalent. Discuss conditions or situations when a tariff and a quota are not equivalent.
If the company plans to produce 5000 units of output, is using the competitor's technology a good idea?
a. Yes b. No c. It does not matter, at 5000 units you are indifferent between the two technologies d. None of the above
The current role of the International Monetary Fund is one of
a. supervising a system of fixed exchange rates. b. providing assistance to countries with currency or debt problems. c. setting exchange rates based on a gold exchange standard. d. acting as a lender of last resort to central banks.
In the short run, tax cuts that are intended to increase aggregate supply have
A. almost no effect on aggregate demand, and a small effect on aggregate supply. B. about an equal effect on both aggregate demand and aggregate supply. C. a much greater effect on aggregate demand than on aggregate supply. D. almost no effect on aggregate supply, and a negative effect on aggregate demand.