Question 1

Which of the following is NOT a proposition of the Heckscher-Ohlin model?

Accepted Answer

A) A country has a comparative advantage in the production of that commodity which uses more intensively the country's more abundant resource. 
B) The effect of international trade is to tend to equalize factor prices between the trading nations. 
C) If the United States is a skilled labor abundant country, then the United States has a comparative advantage in the production of goods that use skilled labor more intensively. 
D) Countries will completely specialize in the product in which they have a comparative advantage if free trade is allowed to occur. 
A) A country has a comparative advantage in the production of that commodity which uses more intensively the country's more abundant resource. 
B) The effect of international trade is to tend to equalize factor prices between the trading nations. 
C) If the United States is a skilled labor abundant country, then the United States has a comparative advantage in the production of goods that use skilled labor more intensively. 
D) Countries will completely specialize in the product in which they have a comparative advantage if free trade is allowed to occur.

Question 2

Which of the following is NOT a primary determinant of the number of jobs in a nation in the long run?

Accepted Answer

A) Age and size of the population 
B) Labor market policies 
C) Macroeconomics policies 
D) International trade 
A) Age and size of the population 
B) Labor market policies 
C) Macroeconomics policies 
D) International trade

Question 3

Offshoring required which types of advances?

Accepted Answer

Advances in communications tec

Question 4

If General Motors imports parts from its plants in Canada and Mexico for finished trucks that it will sell across the NAFTA region,what type of trade does this represent?

Accepted Answer

The answer of If General Motors imports parts from its...

Question 5

Use the table for the following question
Suppose that all goods are made with two factors-labor and capital. The table below shows the total endowments of each factor in the United States and Canada. Table 4.1
Endowment of Labor and Capital
  
-Based on Table 4.1,according to the Stolper-Samuelson Theorem,the income distribution effects of free trade in the United States are likely to favor

Accepted Answer

A) capital. 
B) labor. 
C) either capital or labor, depending on U.S. productivity. 
D) neither capital nor labor. 
A) capital. 
B) labor. 
C) either capital or labor, depending on U.S. productivity. 
D) neither capital nor labor.

Question 6

The primary interest of firms engaging in offshoring is to find lower wages and to decrease production costs.

Accepted Answer

A) True 
 B)False

Question 7

Suppose that Brazil is capital abundant and Chile is natural resource abundant.If timber is natural resource intensive and computers are capital intensive,then according to the Stolper-Samuelson Theorem,the incomes of the owners of ________ are likely to rise in Brazil after trade with Chile begins.

Accepted Answer

A) capital 
B) labor 
C) natural resources 
D) It is impossible to determine which will be favored. 
A) capital 
B) labor 
C) natural resources 
D) It is impossible to determine which will be favored.

Question 8

Most migrants move from developing to developed nations.

Accepted Answer

A) True 
 B)False

Question 9

What is the source of comparative advantage in the Heckscher-Ohlin model?

Accepted Answer

Difference

Question 10

In the long run,the number of jobs in country is primarily determined by macroeconomic factors,not international trade.

Accepted Answer

A) True 
 B)False

Question 11

Chinese exports of toys and footwear can be explained by factor endowments,while Chinese exports of telecommunications equipment and computers and accessories can be explained by product-cycle analysis.

Accepted Answer

A) True 
 B)False

Question 12

Describe the product cycle,including addressing the various inputs that are required over time and the resulting production location decisions.

Accepted Answer

Manufactured products go through a produ

Question 13

Test of the HO theory have clearly been successful.

Accepted Answer

A) True 
 B)False

Question 14

Which types of workers are most likely to favor lowering trade barriers in the United States?

Accepted Answer

Highly edu

Question 15

Tijuana,Mexico is across the border from San Diego,California.It has become a world-leading producer and exporter of television sets and computer monitors,which it assembles in modern factories owned by multinational consumer electronics firms such as Sony.Initially,these electronics were produced in the industrialized countries of their parent companies,and after several years,the production moved to Tijuana.This is an example of

Accepted Answer

A) the product cycle. 
B) intraindustry trade. 
C) the specific factors model. 
D) the magnification effect. 
A) the product cycle. 
B) intraindustry trade. 
C) the specific factors model. 
D) the magnification effect.

Question 16

Which of the following is true according to the case study on U.S./ China trade presented in the chapter?

Accepted Answer

A) China has relative abundance in capital. 
B) China has relative abundance in skilled labor. 
C) The United States has relative scarcity in unskilled labor. 
D) The United States has relative scarcity in capital. 
A) China has relative abundance in capital. 
B) China has relative abundance in skilled labor. 
C) The United States has relative scarcity in unskilled labor. 
D) The United States has relative scarcity in capital.

Question 17

A production possibilities curve that is bowed out represents the case of

Accepted Answer

A) constant costs. 
B) increasing costs. 
C) decreasing costs. 
D) external costs. 
A) constant costs. 
B) increasing costs. 
C) decreasing costs. 
D) external costs.

Question 18

Explain some of the reasons why the HO model is difficult to test empirically.Does this mean that it is not a useful model of trade?

Accepted Answer

Problems with accurately measuring facto

Question 19

Suppose that a country is producing on its PPC at a point to the left of the tangency between the trade line and the PPC.At the production point,

Accepted Answer

A) the opportunity cost in production of the good on the horizontal axis is less than its trade price. 
B) the opportunity cost in production of the good on the horizontal axis is more than its trade price. 
C) the opportunity cost in production of the good on the vertical axis is less than its trade price. 
D) the opportunity cost in production of the good on the horizontal axis may be either less than or more than its trade price. 
A) the opportunity cost in production of the good on the horizontal axis is less than its trade price. 
B) the opportunity cost in production of the good on the horizontal axis is more than its trade price. 
C) the opportunity cost in production of the good on the vertical axis is less than its trade price. 
D) the opportunity cost in production of the good on the horizontal axis may be either less than or more than its trade price.

Question 20

Suppose that Brazil is capital abundant and Chile is natural resource abundant.If timber is natural resource intensive and computers are capital intensive,then

Accepted Answer

A) Chile will produce more computers after trade begins with Brazil. 
B) Brazil will produce more timber after trade begins with Chile. 
C) Chile will produce more timber after trade begins with Brazil. 
D) Brazil will completely specialize in computers once trade begins with Chile. 
A) Chile will produce more computers after trade begins with Brazil. 
B) Brazil will produce more timber after trade begins with Chile. 
C) Chile will produce more timber after trade begins with Brazil. 
D) Brazil will completely specialize in computers once trade begins with Chile.

Which of the following is NOT a proposition of the Heckscher-Ohlin model?

Which of the following is NOT a primary determinant of the number of jobs in a nation in the long run?

Offshoring required which types of advances?

If General Motors imports parts from its plants in Canada and Mexico for finished trucks that it will sell across the NAFTA region,what type of trade does this represent?

The primary interest of firms engaging in offshoring is to find lower wages and to decrease production costs.

Suppose that Brazil is capital abundant and Chile is natural resource abundant.If timber is natural resource intensive and computers are capital intensive,then according to the Stolper-Samuelson Theorem,the incomes of the owners of ________ are likely to rise in Brazil after trade with Chile begins.

Most migrants move from developing to developed nations.

What is the source of comparative advantage in the Heckscher-Ohlin model?

In the long run,the number of jobs in country is primarily determined by macroeconomic factors,not international trade.

Chinese exports of toys and footwear can be explained by factor endowments,while Chinese exports of telecommunications equipment and computers and accessories can be explained by product-cycle analysis.

Describe the product cycle,including addressing the various inputs that are required over time and the resulting production location decisions.

Test of the HO theory have clearly been successful.

Which types of workers are most likely to favor lowering trade barriers in the United States?

Which of the following is true according to the case study on U.S./ China trade presented in the chapter?

A production possibilities curve that is bowed out represents the case of

Explain some of the reasons why the HO model is difficult to test empirically.Does this mean that it is not a useful model of trade?

Suppose that a country is producing on its PPC at a point to the left of the tangency between the trade line and the PPC.At the production point,

Suppose that Brazil is capital abundant and Chile is natural resource abundant.If timber is natural resource intensive and computers are capital intensive,then

The United States in a Global Economy

International Economic Institutions Since World War II

Comparative Advantage and the Gains From Trade

Beyond Comparative Advantage

The Theory of Tariffs and Quotas

Commercial Policy

International Trade and Labor and Environmental Standards

Trade and the Balance of Payments

Exchange Rates and Exchange Rate Systems

An Introduction to Open Economy Macroeconomics

International Financial Crises

The United States in the World Economy

The European Union: Many Markets Into One

Trade and Policy Reform in Latin America

Export-Oriented Growth in East Asia

China and India in the World Economy

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Exam 4: Comparative Advantage and Factor Endowments

Which of the following is NOT a proposition of the Heckscher-Ohlin model?

Which of the following is NOT a primary determinant of the number of jobs in a nation in the long run?

Offshoring required which types of advances?

If General Motors imports parts from its plants in Canada and Mexico for finished trucks that it will sell across the NAFTA region,what type of trade does this represent?

The primary interest of firms engaging in offshoring is to find lower wages and to decrease production costs.

Most migrants move from developing to developed nations.

What is the source of comparative advantage in the Heckscher-Ohlin model?

In the long run,the number of jobs in country is primarily determined by macroeconomic factors,not international trade.

Chinese exports of toys and footwear can be explained by factor endowments,while Chinese exports of telecommunications equipment and computers and accessories can be explained by product-cycle analysis.

Describe the product cycle,including addressing the various inputs that are required over time and the resulting production location decisions.

Test of the HO theory have clearly been successful.

Which types of workers are most likely to favor lowering trade barriers in the United States?

Which of the following is true according to the case study on U.S./ China trade presented in the chapter?

A production possibilities curve that is bowed out represents the case of

Explain some of the reasons why the HO model is difficult to test empirically.Does this mean that it is not a useful model of trade?

Suppose that a country is producing on its PPC at a point to the left of the tangency between the trade line and the PPC.At the production point,

Suppose that Brazil is capital abundant and Chile is natural resource abundant.If timber is natural resource intensive and computers are capital intensive,then

The United States in a Global Economy

International Economic Institutions Since World War II

Comparative Advantage and the Gains From Trade

Beyond Comparative Advantage

The Theory of Tariffs and Quotas

Commercial Policy

International Trade and Labor and Environmental Standards

Trade and the Balance of Payments

Exchange Rates and Exchange Rate Systems

An Introduction to Open Economy Macroeconomics

International Financial Crises

The United States in the World Economy

The European Union: Many Markets Into One

Trade and Policy Reform in Latin America

Export-Oriented Growth in East Asia

China and India in the World Economy

Filters