Tijuana, Mexico is across the border from San Diego, California
It has become a world-leading producer and exporter of television sets and computer monitors, which it assembles in modern factories owned by multinational consumer electronics firms such as Sony. Initially, these electronics were produced in the industrialized countries of their parent companies, and after several years, the production moved to Tiajuana. This is an example of A) the product cycle.
B) intraindustry trade.
C) the specific factors model.
D) the magnification effect.
E) None of the above.
A
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Brand name drugs are chemically identical to their generic counterparts. Yet, consumers often prefer the brand name product to the generic product. Making consumers think that a brand name drug differs from its generic counterpart is an example of
A) product differentiation. B) perfect competition. C) oligopolistic behavior. D) price taking behavior.
Refer to Table 10.1. The value of the government purchases multiplier in this economy is
A) 0.2. B) 0.8. C) 4. D) 5.