Question 1

Suppose that, other things equal, labor moves from country A to country B. In a two-Factor world (capital and labor), this labor movement will lead to

Accepted Answer

A)  an increase in the total return to owners of capital in country A. 
B)  a decrease in the total return to owners of capital in country A. 
C)  a decrease in the wage rate in country B. 
D)  a decrease in total wages paid in country B. 
A)  an increase in the total return to owners of capital in country A. 
B)  a decrease in the total return to owners of capital in country A. 
C)  a decrease in the wage rate in country B. 
D)  a decrease in total wages paid in country B.

Question 2

Foreign investment such as the purchase of foreign bonds or the deposit of funds in a bank account in another country is called __________ investment; this type of Investment involves __________ control over production in the host country than does The other type of investment.

Accepted Answer

A)  direct rather than portfolio; more 
B)  direct rather than portfolio; less 
C)  portfolio rather than direct; more 
D)  portfolio rather than direct; less 
A)  direct rather than portfolio; more 
B)  direct rather than portfolio; less 
C)  portfolio rather than direct; more 
D)  portfolio rather than direct; less

Question 3

Many industrialized countries such as the United States attempt to seriously restrict immigration of production workers, but are more open to immigrants who are highly-skilled. Why might this be the case? Why is this a problem for developing countries and how might they deal with the problem?

Accepted Answer

The restriction of immigration for produ

Question 4

In the graph in Question #23 above, the migration of labor would result in __________ in country I's Gross Domestic Product of the amount of area __________

Accepted Answer

A)  an increase; L1CBAL2 
B)  an increase; L1CFAL2 
C)  a decrease; L1CAL2 
D)  a decrease; L1CFAL2 
A)  an increase; L1CBAL2 
B)  an increase; L1CFAL2 
C)  a decrease; L1CAL2 
D)  a decrease; L1CFAL2

Question 5

In a perfectly-competitive world, restrictions placed by developing countries to halt a "brain drain" would lead to __________ in efficiency and world output in a static sense;Over time, these restrictions might, other things equal, __________ in the per capita income differences between developing countries and developed countries if skilled labor has important production externalities.

Accepted Answer

A)  a decrease; lead to an increase 
B)  a decrease; also lead to a decrease 
C)  an increase; lead to a decrease 
D)  an increase; also lead to an increase 
A)  a decrease; lead to an increase 
B)  a decrease; also lead to a decrease 
C)  an increase; lead to a decrease 
D)  an increase; also lead to an increase

Question 6

Because real investment by foreigners expands a country's capital stock and hence presumably its output and income, why should any country consider restricting foreign investment?

Accepted Answer

While it is true that real investment by

Question 7

In the diagram in Question #9 above, if restrictions on capital flows were removed and Capital was allowed to flow from the low-return country to the high-return country, then National income (i.e., GNP) in country I would __________ by the amount of area__________.

Accepted Answer

A)  decrease; K2EFK1  
B)  decrease; K2EGK1  
C)  increase; AEF 
D)  increase; EFG 
A)  decrease; K2EFK1  
B)  decrease; K2EGK1  
C)  increase; AEF 
D)  increase; EFG

Question 8

In the diagram in Question #9 above, if restrictions on capital flows were removed and Capital was allowed to flow from the low-return country to the high-return country, then Total output in country II would rise by area __________.

Accepted Answer

A)  0'r'3AK1 
B)  K1AEK2 
C)  K1FEK2  
D)  K1GEK2 
A)  0'r'3AK1 
B)  K1AEK2 
C)  K1FEK2  
D)  K1GEK2

Question 9

Labor immigration

Accepted Answer

A)  always produces a net social cost to society. 
B)  clearly appears to result in a net cost to government in the United States. 
C)  in the United States appears to be of relatively less-skilled workers on average than in The past. 
D)  almost always has a positive effect on the country of origin since it is usually the Less-skilled worker who migrates. 
A)  always produces a net social cost to society. 
B)  clearly appears to result in a net cost to government in the United States. 
C)  in the United States appears to be of relatively less-skilled workers on average than in The past. 
D)  almost always has a positive effect on the country of origin since it is usually the Less-skilled worker who migrates.

Question 10

In the graph in Question #23 above, the migration of labor would result in an increase in country I's Gross National Product of the amount of area __________.

Accepted Answer

A)  L1CBAL2 
B)  L1CAL2 
C)  CFA 
D)  FBA 
A)  L1CBAL2 
B)  L1CAL2 
C)  CFA 
D)  FBA

Suppose that, other things equal, labor moves from country A to country B. In a two-Factor world (capital and labor), this labor movement will lead to

Foreign investment such as the purchase of foreign bonds or the deposit of funds in a bank account in another country is called investment; this type of Investment involves control over production in the host country than does The other type of investment.

Many industrialized countries such as the United States attempt to seriously restrict immigration of production workers, but are more open to immigrants who are highly-skilled. Why might this be the case? Why is this a problem for developing countries and how might they deal with the problem?

In the graph in Question #23 above, the migration of labor would result in in country I's Gross Domestic Product of the amount of area

Because real investment by foreigners expands a country's capital stock and hence presumably its output and income, why should any country consider restricting foreign investment?

In the diagram in Question #9 above, if restrictions on capital flows were removed and Capital was allowed to flow from the low-return country to the high-return country, then National income (i.e., GNP) in country I would by the amount of area.

In the diagram in Question #9 above, if restrictions on capital flows were removed and Capital was allowed to flow from the low-return country to the high-return country, then Total output in country II would rise by area __________.

Labor immigration

In the graph in Question #23 above, the migration of labor would result in an increase in country I's Gross National Product of the amount of area __________.

Early Trade Theories: Mercantilism and the Transition to the Classical World of David Ricardo

The Classical World of David Ricardo and Comparative Advantage

Extensions and Tests of the Classical Model of Trade

Introduction to Neoclassical Trade Theory: Tools to Be Employed

Gains From Trade in Neoclassical Theory

Offer Curves and the Terms of Trade

The Basis for Trade: Factor Endowments and the Heckscher-Ohlin Model

Empirical Tests of the Factor Endowments Approach

Post Heckscher-Ohlin Theories of Trade and Intra-Industry Trade

Economic Growth and International Trade

The Instruments of Trade Policy

The Impact of Trade Policies

Arguments for Interventionist Trade Policies

Political Economy and Us Trade Policy

Economic Integration

International Trade and the Developing Countries

The Balance-Of-Payments Accounts

The Foreign Exchange Market

International Financial Markets and Instruments: an Introduction

The Monetary and Portfolio Balance Approaches to External Balance

Price Adjustments and Balance-Of-Payments Disequilibrium

National Income and the Current Account

Economic Policy in the Open Economy Under Fixed Exchange Rates

Economic Policy in the Open Economy Under Flexible Exchange Rates

Prices and Output in the Open Economy: Aggregate Supply and Demand

Fixed or Flexible Exchange Rates

The International Monetary System: Past, Present, and Future

Filters

Exam 12: International Factor Movements

Suppose that, other things equal, labor moves from country A to country B. In a two-Factor world (capital and labor), this labor movement will lead to

Foreign investment such as the purchase of foreign bonds or the deposit of funds in a bank account in another country is called __________ investment; this type of Investment involves __________ control over production in the host country than does The other type of investment.

Many industrialized countries such as the United States attempt to seriously restrict immigration of production workers, but are more open to immigrants who are highly-skilled. Why might this be the case? Why is this a problem for developing countries and how might they deal with the problem?

In the graph in Question #23 above, the migration of labor would result in __________ in country I's Gross Domestic Product of the amount of area __________

Because real investment by foreigners expands a country's capital stock and hence presumably its output and income, why should any country consider restricting foreign investment?

In the diagram in Question #9 above, if restrictions on capital flows were removed and Capital was allowed to flow from the low-return country to the high-return country, then National income (i.e., GNP) in country I would __________ by the amount of area__________.

In the diagram in Question #9 above, if restrictions on capital flows were removed and Capital was allowed to flow from the low-return country to the high-return country, then Total output in country II would rise by area __________.

Labor immigration

In the graph in Question #23 above, the migration of labor would result in an increase in country I's Gross National Product of the amount of area __________.

Early Trade Theories: Mercantilism and the Transition to the Classical World of David Ricardo

The Classical World of David Ricardo and Comparative Advantage

Extensions and Tests of the Classical Model of Trade

Introduction to Neoclassical Trade Theory: Tools to Be Employed

Gains From Trade in Neoclassical Theory

Offer Curves and the Terms of Trade

The Basis for Trade: Factor Endowments and the Heckscher-Ohlin Model

Empirical Tests of the Factor Endowments Approach

Post Heckscher-Ohlin Theories of Trade and Intra-Industry Trade

Economic Growth and International Trade

The Instruments of Trade Policy

The Impact of Trade Policies

Arguments for Interventionist Trade Policies

Political Economy and Us Trade Policy

Economic Integration

International Trade and the Developing Countries

The Balance-Of-Payments Accounts

The Foreign Exchange Market

International Financial Markets and Instruments: an Introduction

The Monetary and Portfolio Balance Approaches to External Balance

Price Adjustments and Balance-Of-Payments Disequilibrium

National Income and the Current Account

Economic Policy in the Open Economy Under Fixed Exchange Rates

Economic Policy in the Open Economy Under Flexible Exchange Rates

Prices and Output in the Open Economy: Aggregate Supply and Demand

Fixed or Flexible Exchange Rates

The International Monetary System: Past, Present, and Future

Filters

Foreign investment such as the purchase of foreign bonds or the deposit of funds in a bank account in another country is called investment; this type of Investment involves control over production in the host country than does The other type of investment.

In the graph in Question #23 above, the migration of labor would result in in country I's Gross Domestic Product of the amount of area

In the diagram in Question #9 above, if restrictions on capital flows were removed and Capital was allowed to flow from the low-return country to the high-return country, then National income (i.e., GNP) in country I would by the amount of area.