Question 1

With equal technology nations will have equal K/L in production if:

Accepted Answer

A) factor prices are the same 
B) tastes are the same 
C) production functions are the same 
D) all of the above 
A) factor prices are the same 
B) tastes are the same 
C) production functions are the same 
D) all of the above

Question 2

The economist who rigorously proved the factor-price equalization theorem was

Accepted Answer

A) David Ricardo 
B) Adam Smith 
C) Paul Samuelson 
D) Wassily Leontief 
A) David Ricardo 
B) Adam Smith 
C) Paul Samuelson 
D) Wassily Leontief

Question 3

One potential reasonable explanation for the Leontief paradox is that

Accepted Answer

A) The U.S.exports capital intensive goods 
B) U.S.labor is more productive than its foreign counterpart 
C) U.S.tastes were biased strongly in favor of capital intensive goods 
D) The two factor model that was used was incomplete 
A) The U.S.exports capital intensive goods 
B) U.S.labor is more productive than its foreign counterpart 
C) U.S.tastes were biased strongly in favor of capital intensive goods 
D) The two factor model that was used was incomplete

Question 4

Consumers demand more of commodity X (the L-intensive commodity)and less of commodity Y (the K-intensive commodity).Suppose that Nation 1 is India,commodity X is textiles,and commodity Y is food.Starting from the no-trade equilibrium position and using the Heckscher-Ohlin model,trace the effect of this change in tastes on India's
a)relative commodity prices and demand for food and textiles,
b)production of both commodities and factor prices,
c)comparative advantage and volume of trade.
d)Do you expect international trade to lead to the complete equalization of relative commodity and factor prices between India and the United States?
Why?

Accepted Answer

a)The change in tastes can be visualized

Question 5

According to the factor price equalization theorem,a nation that has a relative capital abundance should specialize in goods that are ______ intensive resulting in an increase in the price of ______.

Accepted Answer

A) capital;capital 
B) capital;labor 
C) labor;capital 
D) labor;labor 
A) capital;capital 
B) capital;labor 
C) labor;capital 
D) labor;labor

Question 6

Over the last five decades,relative to the United States,real wages among industrialized countries have

Accepted Answer

A) become equal. 
B) moved farther away. 
C) moved closer together. 
D) increased,then decreased. 
A) become equal. 
B) moved farther away. 
C) moved closer together. 
D) increased,then decreased.

Question 7

List at least four of the assumptions of the Heckscher-Ohlin theory

Accepted Answer

Two nations,two goods,two inputs;the sam

Question 8

List three possible explanations for the Leontief paradox

Accepted Answer

The data from 1947 was a non-representat

Question 9

When w/r falls,L/K

Accepted Answer

A) falls in the production of both commodities 
B) rises in the production of both commodities 
C) can rise or fall 
D) is not affected 
A) falls in the production of both commodities 
B) rises in the production of both commodities 
C) can rise or fall 
D) is not affected

Question 10

The factor price equalization theorem states that international trade will bring about equalization in

Accepted Answer

A) relative returns only 
B) absolute returns only 
C) both relative and absolute returns 
D) neither absolute nor relative returns 
A) relative returns only 
B) absolute returns only 
C) both relative and absolute returns 
D) neither absolute nor relative returns

With equal technology nations will have equal K/L in production if:

The economist who rigorously proved the factor-price equalization theorem was

One potential reasonable explanation for the Leontief paradox is that

According to the factor price equalization theorem,a nation that has a relative capital abundance should specialize in goods that are intensive resulting in an increase in the price of .

Over the last five decades,relative to the United States,real wages among industrialized countries have

List at least four of the assumptions of the Heckscher-Ohlin theory

List three possible explanations for the Leontief paradox

When w/r falls,L/K

The factor price equalization theorem states that international trade will bring about equalization in

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, offer Curves, and the Terms of Trade

Economies of Scale, imperfect Competition, and International Trade

Economic Growth and International Trade

Economic Growth and International Trade

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange

The Income Adjustment Mechanism and Synthesis of Automatic

Open-Economy Macroeconomics: Adjustment Policies

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

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past,present,and Future

Filters

Exam 5: Factor Endowments and the Heckscher-Ohlin Theory

With equal technology nations will have equal K/L in production if:

The economist who rigorously proved the factor-price equalization theorem was

One potential reasonable explanation for the Leontief paradox is that

According to the factor price equalization theorem,a nation that has a relative capital abundance should specialize in goods that are ______ intensive resulting in an increase in the price of ______.

Over the last five decades,relative to the United States,real wages among industrialized countries have

List at least four of the assumptions of the Heckscher-Ohlin theory

List three possible explanations for the Leontief paradox

When w/r falls,L/K

The factor price equalization theorem states that international trade will bring about equalization in

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, offer Curves, and the Terms of Trade

Economies of Scale, imperfect Competition, and International Trade

Economic Growth and International Trade

Economic Growth and International Trade

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange

The Income Adjustment Mechanism and Synthesis of Automatic

Open-Economy Macroeconomics: Adjustment Policies

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

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past,present,and Future

Filters

According to the factor price equalization theorem,a nation that has a relative capital abundance should specialize in goods that are intensive resulting in an increase in the price of .