【正文】 ility of all factors across borders. E) Factor endowments determine the technology that is available to a country, which determines the good in which the country will have a parative advantage. Ch6Ch10 the ratio of price of cloth (PC) divided by the price of food (PF) increases in the international marketplace, then A) the terms of trade of cloth exporters will improve. B) all countries would be better off. C) the terms of trade of food exporters will improve. D) the terms of trade of all countries will improve. E) the terms of trade of cloth exporters will worsen. the ratio of price of cloth (PC) divided by the price of food (PF) increases in the international marketplace, then A) world relative quantity of cloth supplied will increase. B) world relative quantity of cloth supplied and demanded will increase. C) world relative quantity of cloth supplied and demanded will decrease. D) world relative quantity of cloth demanded will decrease. E) world relative quantity of food will increase. the . (a large country) imposes a tariff on its imported good, this will tend to A) have no effect on terms of trade. B) improve the terms of trade of the United States. C) improve the terms of trade of all countries. D) because a deterioration of . terms of trade. E) raise the world price of the good imported by the United States. Slovenia were a large country in world trade, then if it instituted a large set of subsidies for its exports, this mustA) decrease its marginal propensity to consume.B) have no effect on its terms of trade. C) improve its terms of trade. D) harm its terms of trade. E) harm world terms of trade. economies of scale arise when the cost per unit A) falls as the average firm grows larger. B) rises as the industry grows larger. C) falls as the industry grows larger. D) rises as the average firm grows larger. E) remains constant over a broad range of output. 6. External economies of scale will ________ average cost when output is ________ by ________. A) reduce。 increased。 the industry B) reduce。 increased。 a firm C) increase。 increased。 a firm D) increase。 increased。 the industry E) reduce。 reduce。 the industry 7. If some industries exhibit internal increasing returns to scale in each country, we should not expect to see A) perfect petition in these industries. B) intraindustry trade between countries. C) interindustry trade between countries. D) high levels of specialization in both countries. E) increased productivity in both countries. 8. A learning curve relates ________ to ________ and is a case of ________ returns. A) unit cost。 cumulative production。 dynamic decreasing returns B) output per time period。 longrun marginal cost。 dynamic increasing returns C) unit cost。 cumulative production。 dynamic increasing returnsD) output per time period。 longrun marginal cost。 dynamic decreasing returns E) labor productivity。 education。 increasing marginal returns of interregional trade are primarily determined by ________ rather than ________ because factors of production are generally ________. A) external economies。 natural resources。 mobile B) internal economies。 external economies。 mobile C) external economies。 population。 immobile D) internal economies。 population。 immobile E) population。 external economies。 immobile 10. Monopolistic petition is associated with A) product differentiation. B) pricetaking behavior. C) explicit consideration at the firm level of the strategic impact of other firms39。 pricing decisions. D) high profit margins in the long run. E) increasing returns to scale. 11. A firm in longrun equilibrium under monopolistic petition will earn A) positive monopoly profits because each sells a differentiated product. B) zero economic profits because of free entryC) positive oligopoly profits because each firm sells a differentiated product. D) negative economic profits because it has economies of scale. E) positive economic profit if it engages in international trade. 12. The most mon form of price discrimination in international trade is A) dumping. B) nontariff barriers. C) Voluntary Export Restraints. D) preferential trade arrangements. E) product boycotts. the following two cases. In the first, a . firm purchases 18% of a foreign firm. In the second, a . firm builds a new production facility in a foreign country. Both are ________, with the first referred to as ________ and the second as ________. A) foreign direct investment (FDI) outflows。 brownfield。 greenfield B) foreign direct investment (FDI) inflows。 greenfield。 brownfield C) foreign direct investment (FDI) outflow