Question 1

One reason that nations impose agricultural quotas and other restrictions is:

Accepted Answer

A)  to limit imports to protect the incomes of specific factors (farm owners). 
B)  to ensure a plentiful food supply. 
C)  to keep the food supply safe from harmful additives used in foreign nations. 
D)  to lower wages. 
A)  to limit imports to protect the incomes of specific factors (farm owners). 
B)  to ensure a plentiful food supply. 
C)  to keep the food supply safe from harmful additives used in foreign nations. 
D)  to lower wages.

Question 2

When Japan opened its borders to trade with the United States in 1854:

Accepted Answer

A)  the prices of Japanese exports to the United States rose. 
B)  the terms of trade for Japan deteriorated. 
C)  there were no gains from trade for the United States. 
D)  the prices of Japanese imports from the United States rose. 
A)  the prices of Japanese exports to the United States rose. 
B)  the terms of trade for Japan deteriorated. 
C)  there were no gains from trade for the United States. 
D)  the prices of Japanese imports from the United States rose.

Question 3

How does the case study of coffee incomes support the conclusions of the specific factors model?

Accepted Answer

The case study of coffee incomes support

Question 4

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 return (rental) on capital when trade occurs?

Accepted Answer

A)  It will fall. 
B)  It will rise. 
C)  It will not change. 
D)  It will first fall, then rise. 
A)  It will fall. 
B)  It will rise. 
C)  It will not change. 
D)  It will first fall, then rise.

Question 5

Which short-run model is used to study the earnings of resources?

Accepted Answer

A)  comparative advantage theory 
B)  absolute advantage theory 
C)  specific-factors model 
D)  production possibility frontier 
A)  comparative advantage theory 
B)  absolute advantage theory 
C)  specific-factors model 
D)  production possibility frontier

Question 6

What does the two-sector (agriculture and manufacturing) specific-factors model allow us to analyze?

Accepted Answer

A)  the returns to all factors of production 
B)  only the returns to capital in agriculture 
C)  only the returns to land in manufacturing 
D)  only the allocation of land to agriculture 
A)  the returns to all factors of production 
B)  only the returns to capital in agriculture 
C)  only the returns to land in manufacturing 
D)  only the allocation of land to agriculture

Question 7

Which federal government program provides additional benefits to workers who are laid off because of import competition?

Accepted Answer

A)  Trade Unemployment Insurance 
B)  Import Unemployment Insurance 
C)  Trade Adjustment Assistance 
D)  Unemployment Insurance 
A)  Trade Unemployment Insurance 
B)  Import Unemployment Insurance 
C)  Trade Adjustment Assistance 
D)  Unemployment Insurance

Question 8

The two-sector (manufacturing and agriculture) specific-factors model assumes that in each industry there are factors of production that are:

Accepted Answer

A)  less productive. 
B)  outsourced to other nations. 
C)  fixed or immobile. 
D)  very scarce and therefore have a high supply price. 
A)  less productive. 
B)  outsourced to other nations. 
C)  fixed or immobile. 
D)  very scarce and therefore have a high supply price.

One reason that nations impose agricultural quotas and other restrictions is:

When Japan opened its borders to trade with the United States in 1854:

How does the case study of coffee incomes support the conclusions of the specific factors model?

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 return (rental) on capital when trade occurs?

Which short-run model is used to study the earnings of resources?

What does the two-sector (agriculture and manufacturing) specific-factors model allow us to analyze?

Which federal government program provides additional benefits to workers who are laid off because of import competition?

The two-sector (manufacturing and agriculture) specific-factors model assumes that in each industry there are factors of production that are:

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

One reason that nations impose agricultural quotas and other restrictions is:

When Japan opened its borders to trade with the United States in 1854:

How does the case study of coffee incomes support the conclusions of the specific factors model?

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 return (rental) on capital when trade occurs?

Which short-run model is used to study the earnings of resources?

What does the two-sector (agriculture and manufacturing) specific-factors model allow us to analyze?

Which federal government program provides additional benefits to workers who are laid off because of import competition?

The two-sector (manufacturing and agriculture) specific-factors model assumes that in each industry there are factors of production that are:

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