Exam 4: Trade and Resources: the Heckscher-Ohlin Model

Consider two products, automobiles and shoes.If shoes are Labor intensive and automobiles are capital intensive, what Will happen under the HO model?

(Multiple Choice)

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Question 101

SCENARIO: CANADA AND THE UNITED STATES Canada and the United States produce computers and Chemicals using labor and capital as the only inputs in Production.The United States is capital abundant, and Canada is labor abundant.Computer production is more Labor intensive than chemical production in both countries. Reference: Ref 47 (Scenario: Canada and the United States) What does the HeckscherOhlin model predict will happen to prices of Computers or chemicals in the two countries?

(Multiple Choice)

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Question 102

If we measure scarcity or abundance correctly, we should Use the concept of "effective factor endowment." This Means:

(Multiple Choice)

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Question 103

Which of the following groups is MOST likely to favor free Trade for the United States?

(Multiple Choice)

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Question 104

(Figure: A Country's Before and After Trade Equilibria) The Trade triangle shows the exports that were exchanged for Imports.What are the three points of the trade triangle?

(Multiple Choice)

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Question 105

Which of the following is NOT an explanation of Leontief's Paradox?

(Multiple Choice)

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Question 106

If a country finds its comparative advantage in computer Production, which is capital intensive, what will happen to The rental rate on capital when trade occurs?

(Multiple Choice)

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Question 107

SCENARIO: FRANCE AND ITALY (1) France and Italy only trade with each other; (2) each Produces wine and bread; (3) The production of bread is Relatively capital intensive, and the production of wine is Relatively labor intensive, and (4) France is relatively Abundant in capital, while Italy is relatively abundant in Labor. Reference: Ref 46 (Scenario: France and Italy) According to the HO model, Free trade between France and Italy should result in

(Multiple Choice)

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Question 108

(Figure: Home and Foreign Autarky Equilibria) According to The shapes of the two PPFs, which nation has a comparative Advantage in the production of computers?

(Multiple Choice)

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Question 109

(Figure: A Country's Before and After Trade Equilibria) How Many computers will this nation export?

(Multiple Choice)

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Question 110

(Figure: A Country's Before and After Trade Equilibria) Suppose that the new international relative price of Computers increases from the pretrade price.If we then Subtract the number of computers purchased domestically At the new international price from the number of Computers produced, we will get one point on ____________ for computers.

(Multiple Choice)

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Question 111

According to the StolperSamuelson theorem, would you expect U.S.skilled workers to benefit from free trade worldwide?

(Essay)

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Question 112

Which of the following offers an explanation for the Leontief Paradox? I.Leon tief's assumption that U.S.and foreign Technologies are the same is incorrect. II.Leontief did not incorporate land a nd other resources. III.Leontief did not distinguish between skilled and. Unskilled labor.

(Multiple Choice)

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Question 113

With the "opening" of trade, the item exported experiences a(n. in demand and therefore a(n) in Its relative (domestic) price, whereas the item imported Experiences a(n) in demand and therefore a(n) in its relative (domestic) price.

(Multiple Choice)

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Question 114

The implication of resources being mobile domestically is That:

(Multiple Choice)

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Question 115

A) Is Surburbia a labor or a capitalabundant country? Explain your answer. B) What is the price of good X in autarky? With free trade? C) How many units of what product are exported? How many units of what product are imported? D) Has the marginal product of labor in good X production increased or decreased? Explain your answer. E) Has the marginal product of capital in good Y production increased or decreased? Explain your answer.

(Essay)

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Question 116

A problem with measuring the factor shares to determine Scarcity or abundance is that:

(Multiple Choice)

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Question 117

Feenstra and Taylor describe the "magnification effect" of Trade.This effect describes how:

(Multiple Choice)

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Question 118

(Figure: A Country's Before and After Trade Equilibria) Using the graph, how can you decide whether the nation has "gained" from trade and has a higher standard of living?

(Essay)

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Question 119

Which statement BEST describes the HeckscherOhlin Model?

(Multiple Choice)

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Question 120

Showing 101 - 120 of 133

Consider two products, automobiles and shoes.If shoes are Labor intensive and automobiles are capital intensive, what Will happen under the HO model?

If we measure scarcity or abundance correctly, we should Use the concept of "effective factor endowment." This Means:

Which of the following groups is MOST likely to favor free Trade for the United States?

(Figure: A Country's Before and After Trade Equilibria) The Trade triangle shows the exports that were exchanged for Imports.What are the three points of the trade triangle?

Which of the following is NOT an explanation of Leontief's Paradox?

If a country finds its comparative advantage in computer Production, which is capital intensive, what will happen to The rental rate on capital when trade occurs?

(Figure: Home and Foreign Autarky Equilibria) According to The shapes of the two PPFs, which nation has a comparative Advantage in the production of computers?

(Figure: A Country's Before and After Trade Equilibria) How Many computers will this nation export?

According to the StolperSamuelson theorem, would you expect U.S.skilled workers to benefit from free trade worldwide?

Which of the following offers an explanation for the Leontief Paradox? I.Leon tief's assumption that U.S.and foreign Technologies are the same is incorrect. II.Leontief did not incorporate land a nd other resources. III.Leontief did not distinguish between skilled and. Unskilled labor.

With the "opening" of trade, the item exported experiences a(n. in demand and therefore a(n) in Its relative (domestic) price, whereas the item imported Experiences a(n) in demand and therefore a(n) in its relative (domestic) price.

The implication of resources being mobile domestically is That:

A problem with measuring the factor shares to determine Scarcity or abundance is that:

Feenstra and Taylor describe the "magnification effect" of Trade.This effect describes how:

(Figure: A Country's Before and After Trade Equilibria) Using the graph, how can you decide whether the nation has "gained" from trade and has a higher standard of living?

Which statement BEST describes the HeckscherOhlin Model?

The Global Economy

Trade and Technology: the Ricardian Model

Gains and Losses From Trade in the Specific-Factors Model

Movement of Labor and Capital Between Countries

Increasing Returns to Scale and Monopolistic Competition

Import Tariffs and Quotas Under Perfect Competition

Import Tariffs and Quotas Under Imperfect Competition

International Agreements: Trade, Labor, and the Environment

Introduction to Exchange Rates and the Foreign Exchange Market

Exchange Rates I: the Monetary Approach in the Long Run

Filters

Exam 4: Trade and Resources: the Heckscher-Ohlin Model

Consider two products, automobiles and shoes.If shoes are Labor intensive and automobiles are capital intensive, what Will happen under the HO model?

If we measure scarcity or abundance correctly, we should Use the concept of "effective factor endowment." This Means:

Which of the following groups is MOST likely to favor free Trade for the United States?

(Figure: A Country's Before and After Trade Equilibria) The Trade triangle shows the exports that were exchanged for Imports.What are the three points of the trade triangle?

Which of the following is NOT an explanation of Leontief's Paradox?

If a country finds its comparative advantage in computer Production, which is capital intensive, what will happen to The rental rate on capital when trade occurs?

(Figure: Home and Foreign Autarky Equilibria) According to The shapes of the two PPFs, which nation has a comparative Advantage in the production of computers?

(Figure: A Country's Before and After Trade Equilibria) How Many computers will this nation export?

According to the Stolper­Samuelson theorem, would you expect U.S.skilled workers to benefit from free trade worldwide?

Which of the following offers an explanation for the Leontief Paradox? I.Leon tief's assumption that U.S.and foreign Technologies are the same is incorrect. II.Leontief did not incorporate land a nd other resources. III.Leontief did not distinguish between skilled and. Unskilled labor.

With the "opening" of trade, the item exported experiences a(n. ________ in demand and therefore a(n) ________ in Its relative (domestic) price, whereas the item imported Experiences a(n) ________ in demand and therefore a(n) ________ in its relative (domestic) price.

The implication of resources being mobile domestically is That:

A problem with measuring the factor shares to determine Scarcity or abundance is that:

Feenstra and Taylor describe the "magnification effect" of Trade.This effect describes how:

(Figure: A Country's Before and After Trade Equilibria) Using the graph, how can you decide whether the nation has "gained" from trade and has a higher standard of living?

Which statement BEST describes the Heckscher­Ohlin Model?

The Global Economy

Trade and Technology: the Ricardian Model

Gains and Losses From Trade in the Specific-Factors Model

Movement of Labor and Capital Between Countries

Increasing Returns to Scale and Monopolistic Competition

Import Tariffs and Quotas Under Perfect Competition

Import Tariffs and Quotas Under Imperfect Competition

International Agreements: Trade, Labor, and the Environment

Introduction to Exchange Rates and the Foreign Exchange Market

Exchange Rates I: the Monetary Approach in the Long Run

Filters

According to the StolperSamuelson theorem, would you expect U.S.skilled workers to benefit from free trade worldwide?

With the "opening" of trade, the item exported experiences a(n. in demand and therefore a(n) in Its relative (domestic) price, whereas the item imported Experiences a(n) in demand and therefore a(n) in its relative (domestic) price.

Which statement BEST describes the HeckscherOhlin Model?