If countries have similar factors of production and similar productivities, most of their trade is likely to be intraindustry
Indicate whether the statement is true or false
TRUE
You might also like to view...
The inability of the Federal Reserve to explain movements in M1 demand has led to
A) less emphasis on money growth as a policy tool. B) the Federal Reserve's targeting V1 growth more closely. C) the Federal Reserve's switching to M2 and M3 targets. D) All of the above.
If a small percentage change in price causes a larger percentage change in the quantity demanded, the good has:
A. an elastic demand. B. an inelastic demand. C. a high magnitude of response. D. a low magnitude of response.
Suppose when the price of laptops fall, college students buy more laptops. This implies that
A) there is a positive relationship between laptop prices and quantities purchased by college students. B) there is a negative relationship between laptop prices and quantities purchased by college students. C) there is a direct relationship between laptop prices and quantities purchased by college students. D) there is a one-to-one relationship between laptop prices and quantities purchased by college students.
The demand curve faced by a nondiscriminating pure monopoly is ________.
A. horizontal B. derived by vertically summing the buyers' individual demand curves C. the same as the industry's demand curve D. more elastic than the demand curve faced by a perfectly competitive firm