Exam 4: Trade and Resources: the Heckscher-Ohlin Model

France and Italy only trade with each other. Each produces wine and bread. The production of bread is relatively capital intensive, and the production of wine is relatively labor intensive. France is relatively abundant in capital, while Italy is relatively abundant in labor. According to the Stolper-Samuelson theorem, free trade between France and Italy should result in:

(Multiple Choice)

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Question 21

In a labor-abundant country, free trade will cause a(n) __ in the rental of capital and a(n) _ in the marginal product of capital.

(Multiple Choice)

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Question 22

(Table: Factor Use in Trade) In the hypothetical economy provided in the table, what is the capital-labor ratio for exports?

(Multiple Choice)

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Question 23

France and Italy only trade with each other. Each produces wine and bread. The production of bread is relatively capital intensive, and the production of wine is relatively labor intensive. France is relatively abundant in capital, while Italy is relatively abundant in labor. According to the Heckscher-Ohlin model, what product(s) will Italy export?

(Multiple Choice)

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Question 24

The conclusion that a labor-abundant country exports the good using labor intensively in production and a capital-abundant country exports the good using capital intensively in production is known as:

(Multiple Choice)

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Question 25

The Heckscher-Ohlin model assumes that a nation's two industries use labor and capital:

(Multiple Choice)

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Question 26

Which of the following groups is most likely to favor free trade for the United States?

(Multiple Choice)

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Question 27

(Table: Factor Use in Latvian Trade) According to the Heckscher-Ohlin model, Latvia's capital-labor ratios are consistent with:

(Multiple Choice)

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Question 28

(Figure: A Country's Before and After Trade Equilibria) Suppose that the new international relative price of computers increases from the pre-trade price. If we then subtract the number of computers purchased domestically at the new international price from the number of computers produced, we will get one point on ____________ for computers.

(Multiple Choice)

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Question 29

(Table: Data on Suburbia) Use this table, which represents autarkic and free-trade production and consumption and resource use for Suburbia, to answer the following question. Did the capital-labor ratio used in the production of good X rise, fall, or remain unchanged as Suburbia moved from autarky to free trade?

(Multiple Choice)

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Question 30

What does the Stolper-Samuelson theorem predict will happen to the real returns to factors of production after trade occurs?

(Multiple Choice)

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Question 31

In the text, which of the following statements is NOT an assumption of the Heckscher-Ohlin model?

(Multiple Choice)

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Question 32

Assume there are two nations each producing two goods, X and Y, and they only trade with each other. Which of the following is identical for both nations if they engage in free trade?

(Multiple Choice)

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Question 33

Compared with the rest of the world in 2013, the United States was most abundant in:

(Multiple Choice)

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Question 34

(Table: Factor Use in Trade) In the hypothetical economy provided in the table, what is the capital-labor ratio for imports?

(Multiple Choice)

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Question 35

A country's effective factor endowment is defined as its:

(Multiple Choice)

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Question 36

In his test of the Heckscher-Ohlin model for the United States, Leontief found that:

(Multiple Choice)

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Question 37

Compared with the rest of the world in 2013, the United States is LEAST abundant in:

(Multiple Choice)

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Question 38

The Heckscher-Ohlin model assumes that factors of production can move freely _, but cannot move _.

(Multiple Choice)

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Question 39

(Figure: A Country's Before and After Trade Equilibria) How many shoes will this nation import?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 138

In a labor-abundant country, free trade will cause a(n) __ in the rental of capital and a(n) _ in the marginal product of capital.

(Table: Factor Use in Trade) In the hypothetical economy provided in the table, what is the capital-labor ratio for exports?

The conclusion that a labor-abundant country exports the good using labor intensively in production and a capital-abundant country exports the good using capital intensively in production is known as:

The Heckscher-Ohlin model assumes that a nation's two industries use labor and capital:

Which of the following groups is most likely to favor free trade for the United States?

(Table: Factor Use in Latvian Trade) According to the Heckscher-Ohlin model, Latvia's capital-labor ratios are consistent with:

What does the Stolper-Samuelson theorem predict will happen to the real returns to factors of production after trade occurs?

In the text, which of the following statements is NOT an assumption of the Heckscher-Ohlin model?

Assume there are two nations each producing two goods, X and Y, and they only trade with each other. Which of the following is identical for both nations if they engage in free trade?

Compared with the rest of the world in 2013, the United States was most abundant in:

(Table: Factor Use in Trade) In the hypothetical economy provided in the table, what is the capital-labor ratio for imports?

A country's effective factor endowment is defined as its:

In his test of the Heckscher-Ohlin model for the United States, Leontief found that:

Compared with the rest of the world in 2013, the United States is LEAST abundant in:

The Heckscher-Ohlin model assumes that factors of production can move freely _, but cannot move _.

(Figure: A Country's Before and After Trade Equilibria) How many shoes will this nation import?

Trade in the Global Economy

Trade and Technology: The Ricardian Model

Gains and Losses From Trade in the Specific-Factors Model

Movement of Labor and Capital Between Countries

Increasing Returns to Scale and Monopolistic Competition

Offshoring of Goods and Services

Import Tariffs and Quotas Under Perfect Competition

Import Tariffs and Quotas Under Imperfect Competition

Export Subsidies in Agriculture and High-Technology Industries

International Agreements: Trade, Labor, and the Environment

The Global Macroeconomy

Introduction to Exchange Rates and the Foreign Exchange Market

Exchange Rates I: the Monetary Approach in the Long Run

Exchange Rates II: the Asset Approach in the Short Run

National and International Accounts: Income, Wealth, and the Balance of Payments

Balance of Payments I: the Gains From Financial Globalization

Balance of Payments II: Output, Exchange Rates, and Macroeconomic Policies in the Short Run

Fixed Versus Floating: International Monetary Experience

Exchange Rate Crises: How Pegs Work and How They Break

The Euro

Topics in International Macroeconomics

Filters

Exam 4: Trade and Resources: the Heckscher-Ohlin Model

In a labor-abundant country, free trade will cause a(n) __________ in the rental of capital and a(n) _________ in the marginal product of capital.

(Table: Factor Use in Trade) In the hypothetical economy provided in the table, what is the capital-labor ratio for exports?

The conclusion that a labor-abundant country exports the good using labor intensively in production and a capital-abundant country exports the good using capital intensively in production is known as:

The Heckscher-Ohlin model assumes that a nation's two industries use labor and capital:

Which of the following groups is most likely to favor free trade for the United States?

(Table: Factor Use in Latvian Trade) According to the Heckscher-Ohlin model, Latvia's capital-labor ratios are consistent with:

What does the Stolper-Samuelson theorem predict will happen to the real returns to factors of production after trade occurs?

In the text, which of the following statements is NOT an assumption of the Heckscher-Ohlin model?

Assume there are two nations each producing two goods, X and Y, and they only trade with each other. Which of the following is identical for both nations if they engage in free trade?

Compared with the rest of the world in 2013, the United States was most abundant in:

(Table: Factor Use in Trade) In the hypothetical economy provided in the table, what is the capital-labor ratio for imports?

A country's effective factor endowment is defined as its:

In his test of the Heckscher-Ohlin model for the United States, Leontief found that:

Compared with the rest of the world in 2013, the United States is LEAST abundant in:

The Heckscher-Ohlin model assumes that factors of production can move freely _______, but cannot move _______.

(Figure: A Country's Before and After Trade Equilibria) How many shoes will this nation import?

Trade in the Global Economy

Trade and Technology: The Ricardian Model

Gains and Losses From Trade in the Specific-Factors Model

Movement of Labor and Capital Between Countries

Increasing Returns to Scale and Monopolistic Competition

Offshoring of Goods and Services

Import Tariffs and Quotas Under Perfect Competition

Import Tariffs and Quotas Under Imperfect Competition

Export Subsidies in Agriculture and High-Technology Industries

International Agreements: Trade, Labor, and the Environment

The Global Macroeconomy

Introduction to Exchange Rates and the Foreign Exchange Market

Exchange Rates I: the Monetary Approach in the Long Run

Exchange Rates II: the Asset Approach in the Short Run

National and International Accounts: Income, Wealth, and the Balance of Payments

Balance of Payments I: the Gains From Financial Globalization

Balance of Payments II: Output, Exchange Rates, and Macroeconomic Policies in the Short Run

Fixed Versus Floating: International Monetary Experience

Exchange Rate Crises: How Pegs Work and How They Break

The Euro

Topics in International Macroeconomics

Filters

In a labor-abundant country, free trade will cause a(n) __ in the rental of capital and a(n) _ in the marginal product of capital.

The Heckscher-Ohlin model assumes that factors of production can move freely _, but cannot move _.