Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
10 Cards in this Set
- Front
- Back
|
According to the Hecksher‐Ohlin model the source of comparative advantage is a country’s
A. Technology B. Advertising C. Factor endowments D. Both a and c |
-
|
|
|
The Hecksher‐Ohlin model rules out the classical model’s basis for trade by assuming what is identical between countries?
A. Factor endowments B. Factor intensities C. Technology D. Opportunity costs |
-
|
|
|
The Hecksher‐Ohlin theorem states that a country will have a comparative advantage in the goods whose production is relatively intensive in the ………………………… with which the country is
abundant A. Tastes B. Technology C. Factor D. Opportunity costs |
-
|
|
|
The central prediction of the Hecksher‐Ohlin theorem is that
A. international goods prices equalize under foreign trade B. comparative advantages depend on the abundance of factor inputs C. international trade disperses technology, speeding convergence D. all nations move beyond their production possibilities sets with free trade E. exchange rates adjust to ensure purchasing power parity |
-
|
|
|
Which of the following would not be predicted by the Hecksher‐Ohlin theorem?
A. the US should export capital‐intensive and technology‐intensive goods B. India should export labour‐intensive goods C. Canada should have a comparative advantage in forestry D. Kuwait should specialize in the production of oil E. Central African Republic should have a comparative advantage in fisheries |
-
|
|
|
Which of the following does not help to explain why the US imports capital‐intensive goods?
A. preference differences between nations B. the imposition of tariffs C. differences in technology across countries D. the relatively recent development of the US capital‐goods industry E. imperfect competition |
-
|
|
|
Let Kj and Lj denote the capital and labour inputs in the production of good j (j=S,T), then S is said to be capital intensive relative to T if
A. KS > KT B. KS/Ls > KT/LT C. LS < LT D. All of the above |
-
|
|
|
Let Kj and Lj denote the capital and labour stocks of country j (j=A,B), then A is said to be capital abundant relative to B if
A. KA > KB B. KA/LA > KB/LB C. LA < LB D. All of the above |
-
|
|
|
QUESTION 9: SEE WORKSHEET
|
-
|
|
|
QUESTION 10: SEE WORKSHEET
|
-
|
