Question 1

Leontief's results can be interpreted as

Accepted Answer

A) evidence against the classical model. 
B) evidence against the Heckscher-Ohlin model. 
C) support for the classical model. 
D) support for the Heckscher-Ohlin model. 
A) evidence against the classical model. 
B) evidence against the Heckscher-Ohlin model. 
C) support for the classical model. 
D) support for the Heckscher-Ohlin model.

Question 2

One of the leading alternative theories to the HO model of international trade is the Human Skills theory,which was developed by

Accepted Answer

A) Donald Keesing. 
B) Adam Smith. 
C) David Ricardo. 
D) G. D. A. MacDougall. 
A) Donald Keesing. 
B) Adam Smith. 
C) David Ricardo. 
D) G. D. A. MacDougall.

Question 3

Leontief explained his findings by arguing that U.S.labor is more efficient than their foreign counterparts.

Accepted Answer

A) True 
 B)False

Question 4

Leontief's results were considered paradoxical because the United States was believed to be

Accepted Answer

A) technologically efficient relative to the rest of the world. 
B) capital abundant relative to the rest of the world. 
C) labor abundant relative to the rest of the world. 
D) All of the above. 
A) technologically efficient relative to the rest of the world. 
B) capital abundant relative to the rest of the world. 
C) labor abundant relative to the rest of the world. 
D) All of the above.

Question 5

One of the reasons why we have several competing theories of international trade flows is difficulty economists encounter in devising and carrying out precise tests of trade theories.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not one of the theories that have emerged as alternatives to the HO model?

Accepted Answer

A) The human skills theory. 
B) The product life cycle theory. 
C) The similarity of preferences theory. 
D) All of the above have been suggested as alternatives to the HO model. 
A) The human skills theory. 
B) The product life cycle theory. 
C) The similarity of preferences theory. 
D) All of the above have been suggested as alternatives to the HO model.

Question 7

Linder argues that trade is based on international similarities in preferences rather than international differences in costs of production.

Accepted Answer

A) True 
 B)False

Question 8

Intraindustry trade can be explained in part by

Accepted Answer

A) transportation costs within and between countries. 
B) problems of data aggregation and categorization. 
C) increasing returns to scale. 
D) All of the above. 
A) transportation costs within and between countries. 
B) problems of data aggregation and categorization. 
C) increasing returns to scale. 
D) All of the above.

Question 9

Describe some of the problems in testing the Heckscher-Ohlin theory.

Accepted Answer

Leontief's test was incomplete because h

Question 10

If the Heckscher-Ohlin model is correct,there would never be intraindustry trade.

Accepted Answer

A) True 
 B)False

Question 11

In his tests,Leontief used an input-output table to

Accepted Answer

A) calculate the capital and labor required to produce $1 million of U.S. exports and imports. 
B) calculate the labor productivity of American workers relative to foreign workers. 
C) calculate the capital productivity of American capital relative to foreign capital. 
D) All of the above. 
A) calculate the capital and labor required to produce $1 million of U.S. exports and imports. 
B) calculate the labor productivity of American workers relative to foreign workers. 
C) calculate the capital productivity of American capital relative to foreign capital. 
D) All of the above.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Which of the following has not been suggested as a reconciliation of Leontief's findings?

Accepted Answer

A) international differences in tastes 
B) U.S. tariff structure 
C) failure to take into account natural resources 
D) temporary data problems immediately after World War II 
A) international differences in tastes 
B) U.S. tariff structure 
C) failure to take into account natural resources 
D) temporary data problems immediately after World War II

Question 14

The simultaneous export and import of airplanes by the United States is an example of

Accepted Answer

A) increasing returns to scale. 
B) imperfect competition. 
C) intraindustry trade. 
D) interindustry trade. 
A) increasing returns to scale. 
B) imperfect competition. 
C) intraindustry trade. 
D) interindustry trade.

Question 15

According to Linder,the gains from international trade come about because consumers are exposed to

Accepted Answer

A) a greater variety of goods. 
B) increasing returns to scale. 
C) imperfect competition. 
D) None of the above. 
A) a greater variety of goods. 
B) increasing returns to scale. 
C) imperfect competition. 
D) None of the above.

Question 16

An input-output table

Accepted Answer

A) details the flows of goods and services between various sectors of the economy. 
B) shows purchases by certain industries from other industries. 
C) shows sales by certain industries to other industries. 
D) All of the above. 
A) details the flows of goods and services between various sectors of the economy. 
B) shows purchases by certain industries from other industries. 
C) shows sales by certain industries to other industries. 
D) All of the above.

Question 17

Is the distribution of income across different countries in the world equitable? In other words,do all countries share the world's wealth equally?

Accepted Answer

No,there are large differences in they w

Question 18

Linder's hypothesis says that countries with ________ of preferences will trade intensively with each other.

Accepted Answer

A) differences 
B) utility 
C) similarity 
D) elasticity 
A) differences 
B) utility 
C) similarity 
D) elasticity

Question 19

Leontief used an input-output table in order to test the

Accepted Answer

A) classical theory. 
B) the Heckscher-Ohlin theory. 
C) the Linder hypothesis. 
D) All of the above. 
A) classical theory. 
B) the Heckscher-Ohlin theory. 
C) the Linder hypothesis. 
D) All of the above.

Question 20

MacDougall compared export ratios and labor productivity ratios for the United States and the United Kingdom in order to test the

Accepted Answer

A) classical theory. 
B) the Heckscher-Ohlin theory. 
C) the Linder hypothesis. 
D) All of the above. 
A) classical theory. 
B) the Heckscher-Ohlin theory. 
C) the Linder hypothesis. 
D) All of the above.

Leontief's results can be interpreted as

One of the leading alternative theories to the HO model of international trade is the Human Skills theory,which was developed by

Leontief explained his findings by arguing that U.S.labor is more efficient than their foreign counterparts.

Leontief's results were considered paradoxical because the United States was believed to be

One of the reasons why we have several competing theories of international trade flows is difficulty economists encounter in devising and carrying out precise tests of trade theories.

Which of the following is not one of the theories that have emerged as alternatives to the HO model?

Linder argues that trade is based on international similarities in preferences rather than international differences in costs of production.

Intraindustry trade can be explained in part by

Describe some of the problems in testing the Heckscher-Ohlin theory.

If the Heckscher-Ohlin model is correct,there would never be intraindustry trade.

In his tests,Leontief used an input-output table to

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

Which of the following has not been suggested as a reconciliation of Leontief's findings?

The simultaneous export and import of airplanes by the United States is an example of

According to Linder,the gains from international trade come about because consumers are exposed to

An input-output table

Is the distribution of income across different countries in the world equitable? In other words,do all countries share the world's wealth equally?

Linder's hypothesis says that countries with ________ of preferences will trade intensively with each other.

Leontief used an input-output table in order to test the

MacDougall compared export ratios and labor productivity ratios for the United States and the United Kingdom in order to test the

An Introduction to International Trade

Tools of Analysis for International Trade Models

The Classical Model of International Trade

The Heckscher-Ohlin Model

Tariffs

Nontariff Barriers and Arguments for Protection

Commercial Policy: History and Practice

Preferential Trade Agreements

International Trade and Economic Growth

The Balance of Payments

The Foreign Exchange Market

International Monetary Systems

Exchange Rates in the Short Run

Exchange Rates in the Long Run

Theories of the Current Account Balance

Open Economy Macroeconomics

International Banking, debt and Risk

Filters

Exam 5: Tests of Trade Models: the Leontief Paradox and Its Aftermath

Leontief's results can be interpreted as

One of the leading alternative theories to the HO model of international trade is the Human Skills theory,which was developed by

Leontief explained his findings by arguing that U.S.labor is more efficient than their foreign counterparts.

Leontief's results were considered paradoxical because the United States was believed to be

One of the reasons why we have several competing theories of international trade flows is difficulty economists encounter in devising and carrying out precise tests of trade theories.

Which of the following is not one of the theories that have emerged as alternatives to the HO model?

Linder argues that trade is based on international similarities in preferences rather than international differences in costs of production.

Intraindustry trade can be explained in part by

Describe some of the problems in testing the Heckscher-Ohlin theory.

If the Heckscher-Ohlin model is correct,there would never be intraindustry trade.

In his tests,Leontief used an input-output table to

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

Which of the following has not been suggested as a reconciliation of Leontief's findings?

The simultaneous export and import of airplanes by the United States is an example of

According to Linder,the gains from international trade come about because consumers are exposed to

An input-output table

Is the distribution of income across different countries in the world equitable? In other words,do all countries share the world's wealth equally?

Linder's hypothesis says that countries with ________ of preferences will trade intensively with each other.

Leontief used an input-output table in order to test the

MacDougall compared export ratios and labor productivity ratios for the United States and the United Kingdom in order to test the

An Introduction to International Trade

Tools of Analysis for International Trade Models

The Classical Model of International Trade

The Heckscher-Ohlin Model

Tariffs

Nontariff Barriers and Arguments for Protection

Commercial Policy: History and Practice

Preferential Trade Agreements

International Trade and Economic Growth

The Balance of Payments

The Foreign Exchange Market

International Monetary Systems

Exchange Rates in the Short Run

Exchange Rates in the Long Run

Theories of the Current Account Balance

Open Economy Macroeconomics

International Banking, debt and Risk

Filters