Question 1

Economic growth is illustrated in the production possibilities frontier diagram as a movement from inside the frontier to the edge of the frontier.

Accepted Answer

A) True 
 B)False

Question 2

The factor proportions model assumes that the residents of the two nations have different tastes for the two goods.

Accepted Answer

A) True 
 B)False

Question 3

Germany, a relatively capital abundant nation, has extensive trade ties with South Korea, a relatively labor abundant nation. As free trade expands between the two nations, the Stolper-Samuelson theorem would predict that:

Accepted Answer

A)  the real return to both labor and capital would rise in Germany. 
B)  the real return to both labor and capital would decline in Germany. 
C)  the real return to labor in Germany would rise while the real return to capital in Germany would decline. 
D)  the real return to labor in Germany would decline while the real return to capital in Germany would rise. 
A)  the real return to both labor and capital would rise in Germany. 
B)  the real return to both labor and capital would decline in Germany. 
C)  the real return to labor in Germany would rise while the real return to capital in Germany would decline. 
D)  the real return to labor in Germany would decline while the real return to capital in Germany would rise.

Economic growth is illustrated in the production possibilities frontier diagram as a movement from inside the frontier to the edge of the frontier.

The factor proportions model assumes that the residents of the two nations have different tastes for the two goods.

Germany, a relatively capital abundant nation, has extensive trade ties with South Korea, a relatively labor abundant nation. As free trade expands between the two nations, the Stolper-Samuelson theorem would predict that:

Understanding the Global Economy

Comparative Advantage: How Nations Can Gain From International Trade

Regulating International Trade: Trade Policies and Their Effects

Regionalism and Multilateralism

Balance of Payments and Foreign Exchange Markets

Exchange Rate Systems: Past to Present

The Power of Arbitrage: Purchasing Power and Interest Rate Parities

Global Money and Banking: Where Central Banks Fit Into the World Economy

Contemporary Global Economic Issues and Policies

Economic Development

Industrial Structure and Trade in the Global Economy: Businesses Without Borders

The Public Sector in the Global Economy

Dealing With Financial Crises: Does the World Need a New International Financial Architecture

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Exam 3: Sources of Comparative Advantage

Economic growth is illustrated in the production possibilities frontier diagram as a movement from inside the frontier to the edge of the frontier.

The factor proportions model assumes that the residents of the two nations have different tastes for the two goods.

Germany, a relatively capital abundant nation, has extensive trade ties with South Korea, a relatively labor abundant nation. As free trade expands between the two nations, the Stolper-Samuelson theorem would predict that:

Understanding the Global Economy

Comparative Advantage: How Nations Can Gain From International Trade

Regulating International Trade: Trade Policies and Their Effects

Regionalism and Multilateralism

Balance of Payments and Foreign Exchange Markets

Exchange Rate Systems: Past to Present

The Power of Arbitrage: Purchasing Power and Interest Rate Parities

Global Money and Banking: Where Central Banks Fit Into the World Economy

Contemporary Global Economic Issues and Policies

Economic Development

Industrial Structure and Trade in the Global Economy: Businesses Without Borders

The Public Sector in the Global Economy

Dealing With Financial Crises: Does the World Need a New International Financial Architecture

Filters