Fill in the blanks. In today's world, most international trade involves __________; this situation is __________ the world of 1950. Select one:

a.manufactured products; similar to

b.agricultural and mineral products; similar to

c.manufactured goods; different from

d.agricultural and mineral products; different from

Which of the following is a reason that nations engage in trade, according to international trade theories? Select one:

a.Economies of scale may give some countries efficiency advantages.

b.Differences in amounts of labor and capital may give some countries efficiency advantages.

c.Different endowments of natural resources or human capital may give some countries efficiency advantages.

d.All of the above

Complete the following statement. The existence of external economies of scale in a particular country: Select one:

a.will raise the country's welfare.

b.will reduce the country's welfare.

c.can be used as a justification for protectionism.

d.occurs when an expansion of output causes average (or per-unit) costs to rise.

Suppose it takes workers in Country A 2 hours to produce a pound of tater tots and 4 hours to produce a pound of sardines. It takes workers in Country B 3 hours to produce a pound of tater tots and 5 hours to produce a can of sardines. Which of the following is true? Select one:

a.In Country B, the opportunity cost of a pound of sardines is 0.6 pounds of tater tots.

b.When trade begins, Country B should export tater tots.

c.In Country A, the opportunity cost of a pound of tater tots is 2 pounds of sardines.

d.In Country B, the opportunity cost of a pound of tater tots is 0.6 pounds of sardines.

Suppose that in the Heckscher-Ohlin model autos are produced capital intensively and nopales are produced in a labor intensive manner. The notion that an increase in the size of Mexico's labor force will lead to an increase in the production of nopales and a decrease in production of autos is known as which of the following? Select one:

a.The Rybczynski theorem

b.The factor-price equalization theorem

c.The Heckscher-Ohlin theorem

d.The Stolper-Samuelson theorem