International Macroeconomics 4th edition by Robert C. Feenstra,
Alan M. Taylor Test Bank 2023/2024
1. Which of the following is NOT a reason why countries trade goods with one another?
A) differences in technology used in different countries
B) differences in countries' total amount of resources
C) the proximity of countries to one another
D) differences in countries' languages and cultures
2. David Ricardo's model explains trade based on:
A) labor supply.
B) technology.
C) population.
D) government control.
3. Which of the following is the MOST likely explanation for a Detroit
construction company's imports of concrete blocks made in Windsor,
Ontario?
A) the Ricardian model
B) offshoring
C) technology
D) proximity
4. What is the MOST likely reason why neighboring nations engage in trade?
A) labor availability
B) similar tastes and preferences
C) proximity
D) shared membership in a free-trade area
5. A country's factors of production includes:
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A) its labor, capital, natural resources, and markets.
B) only its labor and capital.
C) only its capital and natural resources.
D) its labor, capital, and natural resources.
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