971. The analyzes the income distribution effects of trade in the short run when resources are immobile among industries ?
A. Stolpher-Samuelson theory
B. factor endowment theory
C. specific factors theory
D. overlapping demand theory

972. By reducing the volume of trade transportation costs tend to ?
A. stop the process of product price equalization and factor price equalization before they are complete:
B. ensure that the process of product price equalization and factor price equalization are complete
C. eliminate all of the feasible gains from international trade
D. maximize all of the feasible gains from international trade

973. The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?
A. tastes
B. technology
C. factor/resource
D. opportunity cost

974. Wassily Leontief used an input output table in order to test the ?
A. Ricardian theory of comparative advantage
B. HeckscherOhl in theory of comparative advantage
C. Linder theory of overlapping demand
D. All of the above

975. Economics assumes that people consume goods and services to achieve ?
A. Status
B. Prestige
C. Utility
D. Self-esteem

976. Adding up the quantities demanded of a good by different people facing the same price gives us the ?
A. Supply curve
B. Market demand curve
C. Demand curve
D. Market supply curve

977. The increase in total cost when one more unit is produced is known as ?
A. marginal cost
B. opportunity cost
C. limited cost
D. average cost

978. Profits are maximized when ?
A. costs are minimized
B. revenue is maximized
C. average cost is less than average revenue
D. marginal cost equals marginal revenue

979. A firm that breaks even after all economic costs are paid is earning ?
A. Economic profit
B. Accounting profit
C. Normal profit
D. Supernormal profit

980. If both marginal cost and marginal revenue increase, a firm ?
A. Should increase output
B. Should reduce output
C. will require further information on how to respond
D. Should not change output

 

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