Manufacturers would prefer to produce in a country with a trade __________, because it signals a greater opportunity to export products to more markets. surplus deficit culture bonus balance

If a country differs from the rest of the world in taste patterns but not in production capabilities, the trade will lead to some international specialization in ___________.Select one:a.Productionb.Consumptionc.Productivityd.Techniques of production

A product is produced in a monopolistically competitive industry with scale economies. If thisindustry exists in two countries, and these two countries engage in trade with each other, then wewould expectA) the country with a relative abundance of the factor of production in which production of theproduct is intensive will export this product.B) the countries will trade only with other nations they are not in competition with.C) the country in which the price of the product is lower will export the product.D) neither country will export this product since there is no comparative advantage.E) each country will export different varieties of the product to the other.

_______ holds that there are advantages to trade because different countries can produce different goods more efficiently than others.

4. When a country both exports and imports a type of commodity, the country is engaged inA) inter-industry trade.B) an attempt to monopolize the relevant industry.C) increasing returns to scale.D) intra-industry trade.E) imperfect competition

In the Ricardian model, if a country's trade is restricted, this will cause all except which?A) limited specialization and the division of laborB) reduced volume of trade and reduced gains from tradeC) nations to produce inside their production possibilities curvesD) a country to produce some of the product of its comparative disadvantageE) raised costs as more diverse product is produced internally