Question: The efficient allocation of resources requires that production take place at a point where â€|..
Answer: an isoquant from one industry tangent to an isoquant from the other.

Question: The‭ ‬can be conveniently broken down into gains from two distinct sources: …… and gains from specialization.
Answer: gains from trade, gains from exchange

Question: is the increase of consumer surplus plus producer surplus from lower tariffs or otherwise liberalizing trade.
Answer: Gains from trade

Question: The following are members of NAFTA except:
Answer: Brazil

Question: Under constant returns to scale, the marginal products of each factor depend ……..
Answer: only on the capital-labor ratios and not on the level of production.

Question: theorem stated that in free trade with equalized commodity prices, if two countries produce both goods in common, real factor prices will become identical as well.
Answer: Factor-price-equalization

Question: A country may fail to gain from trade when trade further
Answer: Reduces the consumption of a taxed good

Question: show all possible combinations of capital and labor that could be used to produce the level of output X
Answer: Isoquants

Question: A system whereby one country gains through trade, the other country must lose isâ€|….
Answer: zero sum game

Question: Another name for the Vfactor- content theoremV is
Answer: Heckscher-Ohlin-Vanek theorem

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It describes the relationship between relative prices of output and relative factor rewards
Answer: stolper–samuelson theorem

argur that if wages rose above subsistence, the number of workers would increase and bring the wage rates down
Answer: subsistence theorists

A fundamental concept in international trade theory is advantage
Answer: national

International trade is the exchange across borders of goods, services, and factors
Answer: comparative

The gains from trade can be conveniently broken down into gains from from exchnage and
Answer: gains from specialization.

The desire for luxury, show-off for higher standard of living and patterns of consumption of advanced countries is referred to as
Answer: demonstration effect

If the capital-labor ratio in Country A is greater than it is in Country B, we say that Country A is relatively
Answer: capital-abundant

One of the factors affecting gains from trade is
Answer: all the options

is the ratio of an index of a countryVs export prices to an index of its import prices
Answer: terms of trade

refers to an economy as ability to produce goods and services at a lower opportunity cost.
Answer: comparative advantage

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