The focus of the Ricardian model is on how differences in _________ influence international trade patterns.
a. demand
b. comparative costs
c. absolute costs
d. transportation costs
Ans: b. comparative costs
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When two variables move in the same direction, they are said to be:
A) unitary correlated. B) uncorrelated. C) positively correlated. D) a negatively correlated.
The Tiebout model assumes that public services are financed by a proportional property tax.
A. True B. False C. Uncertain
Which of the following was one of the most important achievements of the Uruguay Round of trade talks?
A) The creation of the WTO. B) The creation of the IMF. C) The creation of the World Bank. D) The creation of the GATT organization for international trade.
Average fixed costs:
A. are a constant, regardless of quantity of output. B. always trend downward as output increases. C. are a vertical line. D. always trend upward as output increases.