Because of substantial economies of scale, the _____ theory argues that trade can increase the variety of goods available to consumers.
A: absolute advantage
B: technological gap
C: new trade
D: factor endowments
A: absolute advantage
B: technological gap
C: new trade
D: factor endowments
举一反三
- International trade can be based on economies of scale even if both nations have identical: A: factor endowments B: tastes C: technology D: all of the above
- Countries trade with each other because they are _______ and because of ______ A: different, costs B: similar, scale economies C: different, scale economies D: similar, costs
- The theory of absolute advantage and the relative theory of interest are the traditional theory claiming ( ). A: free trade B: protection trade C: state intervention D: state intervention combined with laissez faire
- ( ) determines the direction of trade and the limits to<br/>mutually beneficial trade. A: Specialization B: Absolute advantage C: Factor abundance D: Comparative advantage
- A dynamic welfare gain resulting from the formation of the European Union would be: A: Trade diversion B: Trade craetion C: Diseconomies of scale D: Economies of scale