AGB 302 QUIZ 3 WITH COMPLETE SOLUTIONS., Exams of Water and Wastewater Engineering

Download AGB 302 QUIZ 3 WITH COMPLETE SOLUTIONS. and more Exams Water and Wastewater Engineering in PDF only on Docsity! AGB 302 QUIZ 3 WITH COMPLETE SOLUTIONS Free Trade - ANSWER- refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country New trade theory - ANSWER- Stresses that in some cases countries specialize in the production and export of particular products because the world market can support only a limited number of firms Mercantilism - ANSWER- supports the idea that countries should export more than what they import adam smith - ANSWER- argued that countries should specialize in the production of goods for which they have an absolute advantage. a straight line - ANSWER- The production possibility frontier will be ________ if constant return to specialization is observed The Heckscher-Ohlin theory predicts that countries will: - ANSWER- export those goods that make intensive use of factors that are locally abundant. product life-cycle theory - ANSWER- The ________ argues that a large proportion of the world's new products had been developed by U.S. firms. economies of scale - ANSWER- The variety of goods that a country can produce is limited by the size of the market in industries where ________ are important. Free Trade - ANSWER- Refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country?