Site MapHelpFeedbackMultiple Choice Quiz
Multiple Choice Quiz
(See related pages)



1

When airlines in the United States purchase Airbus airplanes and airlines in France purchase Boeing airplanes, this is called:
A)internal scale economies.
B)the Leontief Paradox.
C)intra-industry trade.
D)product differentiation.
2

The major explanation for intra-industry trade is:
A)perfect competition.
B)comparative advantage.
C)product differentiation.
D)internal scale economies.
3

If scale economies are small and product differentiation is possible then which market structure is able to arise?
A)oligopoly
B)monopolistic competition
C)monopoly
D)perfect competition
4

The production of one unit of good X requires one unit of labor and one unit of capital. When 2 units of labor and 2 units of capital are employed in the production process, 3 units of good X are produced. This phenomenon is called:
A)monopolistic competition.
B)biased growth.
C)economies of scale.
D)product differentiation.
5

If scale economies are substantial over a large range of output and only a few firms arise in the industry, we call such a market structure:
A)differentiated.
B)monopolistic competition.
C)monopoly.
D)oligopoly.
6

Which countries are most likely to participate in intra-industry trade?
A)countries with high incomes.
B)developing and developed countries.
C)eastern and western countries.
D)developing countries.
7

Economies of scale are more likely to be found in:
A)the auto industry.
B)gasoline stations.
C)firms operating in perfectly competitive markets.
D)economics departments.





To learn more about the book this website supports, please visit its Information Center.
(c)2004 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


International EconomicsOnline Learning Center

Home > Chapter 5 > Multiple Choice Quiz