Economics - Practice Test | ExamPrepSheets

(A) Ricardian theory

(B) Heckscher-ohlin theory

(C) Vent-for-surplus theory

(D) Strategic trade theory

(C) Vent-for-surplus theory

(A) $$M{U_X} = M{U_y} = {M_Z}$$

(B) $$frac{{M{U_X}}}{{{P_X}}} = frac{{M{U_Y}}}{{{P_Y}}} = frac{{{M_Z}}}{{{P_Z}}}$$

(C) $$frac{{M{U_X}}}{{{P_X}}} = frac{{M{U_Y}}}{{{P_Y}}} = frac{{M{U_Z}}}{{{P_Z}}} = M{U_M}$$

(D) $$frac{{M{U_X}}}{{{P_X}}} < frac{{M{U_Y}}}{{{P_Y}}} < frac{{M{U_Z}}}{{{P_Z}}} < M{U_M}$$

(C) $$frac{{M{U_X}}}{{{P_X}}} = frac{{M{U_Y}}}{{{P_Y}}} = frac{{M{U_Z}}}{{{P_Z}}} = M{U_M}$$

(A) strategic interaction

(B) prisoner's dilemma

(C) price leadership

(D) None of these

(A) strategic interaction

(A) the realism of its assumption(s)

(B) the lack of realism of its assumption(s)

(C) its ability to predict accurately

(D) none of the above

(C) its ability to predict accurately

(A) When firm is too small and too specialized

(B) When firm's decision to hire inputs do not result in an increase in the input costs

(C) When firm is too large and overdiversified

(D) When long-run cost of producing a unit falls as the output increases

(D) When long-run cost of producing a unit falls as the output increases

Economics - Study Mode