MCQ: The success of regional and urban policies has been limited by ?

1. bureaucracy
2. bad luck
3. poor communications
4. the low level of government grants and by the fact that some projects would have gone ahead anyway

MCQ: The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries ?

1. Economies of large-scale production
2. Relative abundance of various resources
3. Relative costs of labor
4. Research and development expenditures

MCQ: Boeing aircraft company was able to over its production costs of the first – jumbo jetll in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates ?

1. How economies of scale make possible a larger variety of products in international trade
2. A transfer of wealth from domestic consumer to domestic producer as the result of trade
3. How a natural monopoly is forced to behave more competitively with international trade
4. How a natural monopoly is forced to behave less competitively with international trade

MCQ: The theory of overlapping demand predicts that trade in manufactured goods is unimportant for countries with very different ?

1. Tastes and preferences
2. Expectations of future interest rate levels
3. Per-capita income levels
4. Labor productivities

MCQ: According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ?

1. Devote excessive amounts of resources to agricultural production
2. Devote insufficient amounts of resources to agricultural production
3. Export products that are land-intensive
4. Import products that are land-intensive

MCQ: According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?

1. similar endowments of natural resources
2. similar levels of technology
3. similar per-capita incomes
4. similar wage levels