Question 1

Recent tests suggest that the Leontief Paradox has been completely resolved.

Accepted Answer

A) True 
 B)False

Question 2

The finding that U.S. exports tend to come from labor-intensive industries, while U.S. imports are produced using relatively capital intensive techniques is known as

Accepted Answer

A)  the Leontief paradox. 
B)  the balance of trade enigma. 
C)  the Heckscher-Ohlin paradox. 
D)  the Krugman finding. 
A)  the Leontief paradox. 
B)  the balance of trade enigma. 
C)  the Heckscher-Ohlin paradox. 
D)  the Krugman finding.

Question 3

If some industries exhibit increasing returns to scale in each country, we should not expect to see

Accepted Answer

A)  intraindustry trade between countries. 
B)  perfect competition in these industries. 
C)  interindustry trade between countries. 
D)  Either B or C. 
A)  intraindustry trade between countries. 
B)  perfect competition in these industries. 
C)  interindustry trade between countries. 
D)  Either B or C.

Question 4

A problem with Leontief's methodology is that

Accepted Answer

A)  he had no information on U.S. and foreign factor endowments. 
B)  he did not use information on foreign factor intensities. 
C)  he ignored the roles of other factors of production such as natural resources. 
D)  All of the above are problems. 
A)  he had no information on U.S. and foreign factor endowments. 
B)  he did not use information on foreign factor intensities. 
C)  he ignored the roles of other factors of production such as natural resources. 
D)  All of the above are problems.

Question 5

According to the human skills theory

Accepted Answer

A)  trade patterns depend upon a country's relative endowment of skilled workers. 
B)  countries with large endowments of skilled labor will have comparative advantage in skilled labor intensive products. 
C)  the Leontief paradox is explained by the fact that the United States is relatively skilled labor abundant. 
D)  All of the above. 
A)  trade patterns depend upon a country's relative endowment of skilled workers. 
B)  countries with large endowments of skilled labor will have comparative advantage in skilled labor intensive products. 
C)  the Leontief paradox is explained by the fact that the United States is relatively skilled labor abundant. 
D)  All of the above.

Recent tests suggest that the Leontief Paradox has been completely resolved.

The finding that U.S. exports tend to come from labor-intensive industries, while U.S. imports are produced using relatively capital intensive techniques is known as

If some industries exhibit increasing returns to scale in each country, we should not expect to see

A problem with Leontief's methodology is that

According to the human skills theory

An Introduction to International Trade

Tools of Analysis for International Trade Models

The Classical Model of International Trade

The Heckscher-Ohlin Theory

Tariffs

Nontariff Barriers and Arguments for Protection

Commercial Policy: History and Practice

Preferential Trade Arrangements

International Trade and Economic Growth

An Introduction to International Finance

The Balance of Payments

The Foreign-Exchange Market

Prices and Exchange Rates: Purchasing Power Parity

Exchange Rates, Interest Rates, and Interest Parity

Foreign-Exchange Risk, Forecasting, and International Investment

Basic Theories of the Balance of Payments

Exchange Rate Theories

Alternative International Monetary Standards

International Banking, Debt, and Risk

Open-Economy Macroeconomic Policy and Adjustment

Filters

Exam 5: Tests of Trade Models: the Leontief Paradox and Its After-math

Recent tests suggest that the Leontief Paradox has been completely resolved.

The finding that U.S. exports tend to come from labor-intensive industries, while U.S. imports are produced using relatively capital intensive techniques is known as

If some industries exhibit increasing returns to scale in each country, we should not expect to see

A problem with Leontief's methodology is that

According to the human skills theory

An Introduction to International Trade

Tools of Analysis for International Trade Models

The Classical Model of International Trade

The Heckscher-Ohlin Theory

Tariffs

Nontariff Barriers and Arguments for Protection

Commercial Policy: History and Practice

Preferential Trade Arrangements

International Trade and Economic Growth

An Introduction to International Finance

The Balance of Payments

The Foreign-Exchange Market

Prices and Exchange Rates: Purchasing Power Parity

Exchange Rates, Interest Rates, and Interest Parity

Foreign-Exchange Risk, Forecasting, and International Investment

Basic Theories of the Balance of Payments

Exchange Rate Theories

Alternative International Monetary Standards

International Banking, Debt, and Risk

Open-Economy Macroeconomic Policy and Adjustment

Filters