Question 1

For factor reversal to occur,two commodities must be produced with:

Accepted Answer

A)  sufficiently different elasticity of substitution of factors 
B)  the same K/L ratio 
C)  technologically-fixed factor proportions 
D)  equal elasticity of substitution of factors 
A)  sufficiently different elasticity of substitution of factors 
B)  the same K/L ratio 
C)  technologically-fixed factor proportions 
D)  equal elasticity of substitution of factors

Question 2

The H-O model assumes a world in which factors of production cannot move but goods can.In terms of output prices and factor prices,explain what (if anything)would be different about a world in which there was complete factor mobility but no trade versus a world in which there was absolutely free trade but no factor mobility.

Accepted Answer

In the H-O model,output prices equalize

Question 3

In the H-O model,international trade is based mostly on a difference in:

Accepted Answer

A)  technology 
B)  factor endowments 
C)  economies of scale 
D)  tastes 
A)  technology 
B)  factor endowments 
C)  economies of scale 
D)  tastes

Question 4

The United States can be characterized as relatively capital abundant and labor scarce.Thus,according to the H-O model,

Accepted Answer

A)  social welfare in the United States will be reduced by trade. 
B)  wages in the United States will be reduced by trade. 
C)  the return on capital in the United States will be reduced by trade. 
D)  capital-labor ratios in will be changed by trade. 
A)  social welfare in the United States will be reduced by trade. 
B)  wages in the United States will be reduced by trade. 
C)  the return on capital in the United States will be reduced by trade. 
D)  capital-labor ratios in will be changed by trade.

Question 5

List three possible explanations for the Leontief paradox

Accepted Answer

The data from 1947 was a non-representat

Question 6

From empirical studies,we conclude that the H-O theory:

Accepted Answer

A)  must be rejected 
B)  must be accepted without reservations 
C)  can be accepted while awaiting further testing 
D)  explains all international trade 
A)  must be rejected 
B)  must be accepted without reservations 
C)  can be accepted while awaiting further testing 
D)  explains all international trade

Question 7

A nation is said to have a relative abundance of K if it has a:

Accepted Answer

A)  greater absolute amount of K 
B)  smaller absolute amount of L 
C)  higher L/K ratio 
D)  lower r/w 
A)  greater absolute amount of K 
B)  smaller absolute amount of L 
C)  higher L/K ratio 
D)  lower r/w

Question 8

The H-O model is a general equilibrium model because it deals with:

Accepted Answer

A)  production in both nations 
B)  consumption in both nations 
C)  trade between the two nations 
D)  all of the above 
A)  production in both nations 
B)  consumption in both nations 
C)  trade between the two nations 
D)  all of the above

Question 9

In the United States,labor unions consistently oppose international trade and support trade barriers.Use the H-O model to explain why.

Accepted Answer

The United States is a capital-abundant

Question 10

Which is not an assumption of the H-O model?

Accepted Answer

A)  the same technology in both nations 
B)  constant returns to scale 
C)  complete specialization 
D)  equal tastes in both nations 
A)  the same technology in both nations 
B)  constant returns to scale 
C)  complete specialization 
D)  equal tastes in both nations

For factor reversal to occur,two commodities must be produced with:

In the H-O model,international trade is based mostly on a difference in:

The United States can be characterized as relatively capital abundant and labor scarce.Thus,according to the H-O model,

List three possible explanations for the Leontief paradox

From empirical studies,we conclude that the H-O theory:

A nation is said to have a relative abundance of K if it has a:

The H-O model is a general equilibrium model because it deals with:

In the United States,labor unions consistently oppose international trade and support trade barriers.Use the H-O model to explain why.

Which is not an assumption of the H-O model?

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

Trade Restrictions: Tariffs

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 Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

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 Answers to Selected Problems on Web

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Exam 5: Factor Endowments and the Heckscherohlin Theory

For factor reversal to occur,two commodities must be produced with:

In the H-O model,international trade is based mostly on a difference in:

The United States can be characterized as relatively capital abundant and labor scarce.Thus,according to the H-O model,

List three possible explanations for the Leontief paradox

From empirical studies,we conclude that the H-O theory:

A nation is said to have a relative abundance of K if it has a:

The H-O model is a general equilibrium model because it deals with:

In the United States,labor unions consistently oppose international trade and support trade barriers.Use the H-O model to explain why.

Which is not an assumption of the H-O model?

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

Trade Restrictions: Tariffs

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 Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

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 Answers to Selected Problems on Web

Filters