test bank 3.docVIP

CHAPTER 3 SOURCES OF COMPARATIVE ADVANTAGE MULTIPLE-CHOICE QUESTIONS 1. Which of the following suggests that a nation will export the commodity in the production of which a great deal of its relatively abundant and cheap factor is used? a. The Linder theory b. The product life cycle theory c. The MacDougall theory d. The Heckscher-Ohlin theory 2. According to Staffan Linder, trade between two countries tends to be most pronounced when the countries: a. Find their tastes and preferences to be quite harmonious b. Experience economies of large-scale production over large output levels c. Face