The ____________ model best explains intra-industry trade.
a. Ricardian
b. Heckscher-Ohlin
c. monopolistic competition
d. specific-factors
Ans: c. monopolistic competition
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Savers are willing to lend out money because:
A) they prefer to spend money in the future rather than today. B) the rate of inflation in an economy is normally positive. C) of altruism. D) the rate of inflation in an economy is normally negative.
The income-expenditure model focuses on changes in
A) price. B) operational lags. C) output levels. D) import restrictions.
A consumer has maximized her total utility (as measured in money) when, at the quantity of each good chosen
A. marginal utility is negative. B. marginal utility divided by price is equal to 1. C. marginal utility is greater than price. D. marginal utility is equal to total utility.
A shortcoming of national income accounting is that it ignores: a. the depreciation of manufactured capital
b. spending by poor households who are receiving government transfer payments. c. spending on intermediate goods. d. the depletion of natural resources. e. U.S. products that are sold overseas.