Exam 3: Gains and Losses From Trade in the Specific-Factors Model

According to the two-sector (manufacturing and agriculture) specific-factor model, will nominal and real wages rise, fall, or not change when a country with a comparative advantage in agricultural output moves from an autarkic to a free trade situation?

(Short Answer)

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Question 121

Suppose that the home country in the two-sector (manufacturing and agriculture) specific-factors model has a comparative advantage in manufactured output. Will workers be better or worse off following the opening of trade with other countries?

(Multiple Choice)

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Question 122

Under the 2009 jobs stimulus bill signed by President Obama, which workers can apply for aid after losing their jobs because of import competition?

(Multiple Choice)

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Question 123

In the two-sector (manufacturing and agriculture) specific-factors model, which resource(s) is(are) transferable between sectors?

(Multiple Choice)

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Question 124

Which statement below is correct?

(Multiple Choice)

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Question 125

The example of fair-trade coffee illustrates the problem of trying to stabilize returns to specific factors. What is the problem?

(Multiple Choice)

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Question 126

Which term below describes a situation in which a nation prohibits trade with one or more trading partner nations?

(Multiple Choice)

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Question 127

Suppose that capital is mobile between sectors but that there are two kinds of specific labor: skilled and unskilled. If skilled labor prefers autarky to free trade, what can you say about the number of skilled workers relative to the number of unskilled workers?

(Essay)

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Question 128

In the two-sector specific-factors model, as more labor is added to a sector, we will see:

(Multiple Choice)

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Question 129

According to the Bureau of Labor Statistics, the people losing jobs in the manufacturing sector between 2011 and 2014 were:

(Multiple Choice)

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Question 130

Coffee prices fell in the 1990s because of:

(Multiple Choice)

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Question 131

(Table: Sales and Payments) Suppose that the price of the manufactured good rises by 20% with no change in the price of the agricultural good. Wages in both sectors rise by 10%. Which of the following is the correct ordering (from highest to lowest) of changes in the real wage, real rental on capital, and real rental on land?

(Multiple Choice)

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Question 132

If the price per bushel of wheat is $3 and the marginal product of labor is four bushels per hour, then what is the hourly wage?

(Multiple Choice)

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Question 133

Suppose that land is specific to corn, capital is specific to automobiles, labor is mobile between sectors, and payments are as follows: Automobiles: Sales revenue = 200; payments to labor = 100; payments to capital = 100 Corn: Sales revenue = 100; payments to labor = 40; payments to land = 60 Holding the price of automobiles constant, suppose the increase in the price of corn is 20% and the increase in the wage is 10%. What is the impact of this on the income of land and the income of capital? What has happened to the real income of land? What has happened to the real income of capital? What has happened to the real income of labor?

(Essay)

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Question 134

(Table: Home and Foreign Prices for Manufacturing and Agriculture) Consider the information provided about the price of agriculture and manufacturing goods in two countries (Home and Foreign). Under free trade conditions, Foreign will export goods and Home will export ___ goods.

(Multiple Choice)

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Question 135

In a two-sector (manufacturing and agriculture) specific-factors model, which resource is specific to the agriculture sector?

(Multiple Choice)

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Question 136

Suppose that the home country in the two-sector (manufacturing and agriculture) specific-factors model has a comparative advantage in manufacturing output. What will happen to the relative price of manufactured output when trade occurs?

(Multiple Choice)

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Question 137

In a two-sector (manufacturing and agriculture) specific-factors model:

(Multiple Choice)

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Question 138

(Table: Production and Prices in Two Industries) According to the information provided in the table, if the price of the agriculture good decreases to $5, then:

(Multiple Choice)

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Question 139

In a competitive market, what happens to the equilibrium wage?

(Multiple Choice)

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Question 140

Showing 121 - 140 of 148

According to the two-sector (manufacturing and agriculture) specific-factor model, will nominal and real wages rise, fall, or not change when a country with a comparative advantage in agricultural output moves from an autarkic to a free trade situation?

Suppose that the home country in the two-sector (manufacturing and agriculture) specific-factors model has a comparative advantage in manufactured output. Will workers be better or worse off following the opening of trade with other countries?

Under the 2009 jobs stimulus bill signed by President Obama, which workers can apply for aid after losing their jobs because of import competition?

In the two-sector (manufacturing and agriculture) specific-factors model, which resource(s) is(are) transferable between sectors?

Which statement below is correct?

The example of fair-trade coffee illustrates the problem of trying to stabilize returns to specific factors. What is the problem?

Which term below describes a situation in which a nation prohibits trade with one or more trading partner nations?

Suppose that capital is mobile between sectors but that there are two kinds of specific labor: skilled and unskilled. If skilled labor prefers autarky to free trade, what can you say about the number of skilled workers relative to the number of unskilled workers?

In the two-sector specific-factors model, as more labor is added to a sector, we will see:

According to the Bureau of Labor Statistics, the people losing jobs in the manufacturing sector between 2011 and 2014 were:

Coffee prices fell in the 1990s because of:

If the price per bushel of wheat is $3 and the marginal product of labor is four bushels per hour, then what is the hourly wage?

(Table: Home and Foreign Prices for Manufacturing and Agriculture) Consider the information provided about the price of agriculture and manufacturing goods in two countries (Home and Foreign). Under free trade conditions, Foreign will export goods and Home will export ___ goods.

In a two-sector (manufacturing and agriculture) specific-factors model, which resource is specific to the agriculture sector?

Suppose that the home country in the two-sector (manufacturing and agriculture) specific-factors model has a comparative advantage in manufacturing output. What will happen to the relative price of manufactured output when trade occurs?

In a two-sector (manufacturing and agriculture) specific-factors model:

(Table: Production and Prices in Two Industries) According to the information provided in the table, if the price of the agriculture good decreases to $5, then:

In a competitive market, what happens to the equilibrium wage?

Trade in the Global Economy

Trade and Technology: The Ricardian Model

Trade and Resources: the Heckscher-Ohlin 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 3: Gains and Losses From Trade in the Specific-Factors Model

According to the two-sector (manufacturing and agriculture) specific-factor model, will nominal and real wages rise, fall, or not change when a country with a comparative advantage in agricultural output moves from an autarkic to a free trade situation?

Suppose that the home country in the two-sector (manufacturing and agriculture) specific-factors model has a comparative advantage in manufactured output. Will workers be better or worse off following the opening of trade with other countries?

Under the 2009 jobs stimulus bill signed by President Obama, which workers can apply for aid after losing their jobs because of import competition?

In the two-sector (manufacturing and agriculture) specific-factors model, which resource(s) is(are) transferable between sectors?

Which statement below is correct?

The example of fair-trade coffee illustrates the problem of trying to stabilize returns to specific factors. What is the problem?

Which term below describes a situation in which a nation prohibits trade with one or more trading partner nations?

Suppose that capital is mobile between sectors but that there are two kinds of specific labor: skilled and unskilled. If skilled labor prefers autarky to free trade, what can you say about the number of skilled workers relative to the number of unskilled workers?

In the two-sector specific-factors model, as more labor is added to a sector, we will see:

According to the Bureau of Labor Statistics, the people losing jobs in the manufacturing sector between 2011 and 2014 were:

Coffee prices fell in the 1990s because of:

If the price per bushel of wheat is $3 and the marginal product of labor is four bushels per hour, then what is the hourly wage?

(Table: Home and Foreign Prices for Manufacturing and Agriculture) Consider the information provided about the price of agriculture and manufacturing goods in two countries (Home and Foreign). Under free trade conditions, Foreign will export ________ goods and Home will export ___________ goods.

In a two-sector (manufacturing and agriculture) specific-factors model, which resource is specific to the agriculture sector?

Suppose that the home country in the two-sector (manufacturing and agriculture) specific-factors model has a comparative advantage in manufacturing output. What will happen to the relative price of manufactured output when trade occurs?

In a two-sector (manufacturing and agriculture) specific-factors model:

(Table: Production and Prices in Two Industries) According to the information provided in the table, if the price of the agriculture good decreases to $5, then:

In a competitive market, what happens to the equilibrium wage?

Trade in the Global Economy

Trade and Technology: The Ricardian Model

Trade and Resources: the Heckscher-Ohlin 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

(Table: Home and Foreign Prices for Manufacturing and Agriculture) Consider the information provided about the price of agriculture and manufacturing goods in two countries (Home and Foreign). Under free trade conditions, Foreign will export goods and Home will export ___ goods.