Summary
Summary Ecs3702 Assessment 1, 2, and 4
- Course
- Institution
Compulsory Assessment.
[Show more]
Seller
Follow
AngelCathrine
Reviews received
Content preview
Adam Smith believed that countries gained from trade by specializing in the production ofthe product of their absolute advantage. As a result,
a.
The gains from specialization is the increased input and maximized individual welfare
b.
Specialization leads to increased output of both commodities, and the gains from
specialization is the increased output and maximized individual welfare
c.
Specialization leads to decreased output of both commodities, and the loss from
specialization is the loss of output
d.
Specialization leads to increased output of both commodities, and the gains from
specialization is only the maximized individual welfare
Feedback
The correct answer is:
Specialization leads to increased output of both commodities, and the gains from
specialization is the increased output and maximized individual welfare
Question 2
Correct
Mark 1.00 out of 1.00
Flag question
Question text
,Which of the following statements is correct?
a.
Intra-industry trade refers to trade in differentiated products of different industries.
b.
Inter-industry trade refers to trade in differentiated products and intra-industry trade refers
to trade in different products.
c.
Intra-industry trade is comparative advantage and differences in factor endowments, while
the H-O model is based on product differentiation and economies of scale.
d.
Intra-industry trade tends to be larger among industrial economies of similar size and factor
proportions.
Feedback
The correct answer is:
Intra-industry trade tends to be larger among industrial economies of similar size and factor
proportions.
Question 3
Correct
Mark 1.00 out of 1.00
Flag question
,Question text
The following statements are correct, except
a.
intra-industry trade arises to take advantage of economies of scale in production
b.
consumers benefit from an increased variety of products because of intra-industry trade
c.
intra-industry trade is based on natural comparative advantage
d.
intra-industry trade is based on product differentiation and economies of scale
Feedback
The correct answer is:
intra-industry trade is based on natural comparative advantage
Question 4
Correct
Mark 1.00 out of 1.00
Flag question
Question text
Use the hypothetical scenario below to answer the questions that follow
Output Togo Mali
, Cheese (ton/hr) 60 10
Aircrafts (Units/hr) 40 20
If Togo exchanges 60C for 60A with Mali, the range of mutually beneficial trade is
a.
20A<120C<120A
b.
40A<60C<120A
c.
60A<60C<120A
d.
60A<60C<120C
Feedback
The correct answer is:
40A<60C<120A
Question 5
Correct
Mark 1.00 out of 1.00
Flag question
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller AngelCathrine. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.04. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78861 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now