Question 1

An increase in tastes for the import commodity in both nations:

Accepted Answer

A) reduces the volume of trade 
B) increases the volume of trade 
C) leaves the volume of trade unchanged 
D) any of the above 
A) reduces the volume of trade 
B) increases the volume of trade 
C) leaves the volume of trade unchanged 
D) any of the above B

Question 2

Doubling K with trade in a large L-abundant nation:

Accepted Answer

A) increases the nation's welfare 
B) improves the nation's terms of trade 
C) reduces the volume of trade 
D) all of the above 
A) increases the nation's welfare 
B) improves the nation's terms of trade 
C) reduces the volume of trade 
D) all of the above D

Question 3

Doubling L is likely to:

Accepted Answer

A) increases the relative price of the L-intensive commodity 
B) reduces the relative price of the K-intensive commodity 
C) reduces the relative price of the L-intensive commodity 
D) any of the above 
A) increases the relative price of the L-intensive commodity 
B) reduces the relative price of the K-intensive commodity 
C) reduces the relative price of the L-intensive commodity 
D) any of the above C

Question 4

Doubling only the amount of L available under constant returns to scale:

Accepted Answer

A) less than doubles the output of the L-intensive commodity 
B) more than doubles the output of the L-intensive commodity 
C) doubles the output of the K-intensive commodity 
D) leaves the output of the K-intensive commodity unchanged 
A) less than doubles the output of the L-intensive commodity 
B) more than doubles the output of the L-intensive commodity 
C) doubles the output of the K-intensive commodity 
D) leaves the output of the K-intensive commodity unchanged

Question 5

The Rybczynski theorem postulates that doubling L at constant relative commodity prices:

Accepted Answer

A) doubles the output of the L-intensive commodity 
B) reduces the output of the K-intensive commodity 
C) increases the output of both commodities 
D) any of the above 
A) doubles the output of the L-intensive commodity 
B) reduces the output of the K-intensive commodity 
C) increases the output of both commodities 
D) any of the above

Question 6

Technical progress in the nation's export commodity:

Accepted Answer

A) may reduce the nation's welfare 
B) will reduce the nation's welfare 
C) will increase the nation's welfare 
D) leaves the nation's welfare unchanged 
A) may reduce the nation's welfare 
B) will reduce the nation's welfare 
C) will increase the nation's welfare 
D) leaves the nation's welfare unchanged

Question 7

Technical progress that increases the productivity of L proportionately more than the productivity of K is called:

Accepted Answer

A) capital saving 
B) labor saving 
C) neutral 
D) any of the above 
A) capital saving 
B) labor saving 
C) neutral 
D) any of the above

Question 8

Doubling the amount of L and K under constant returns to scale:

Accepted Answer

A) doubles the output of the L-intensive commodity 
B) doubles the output of the K-intensive commodity 
C) leaves the shape of the production frontier unchanged 
D) all of the above. 
A) doubles the output of the L-intensive commodity 
B) doubles the output of the K-intensive commodity 
C) leaves the shape of the production frontier unchanged 
D) all of the above.

Question 9

An increase in tastes of the import commodity of Nation A and export in B:

Accepted Answer

A) will reduce the terms of trade of Nation A 
B) will increase the terms of trade of Nation A 
C) will reduce the terms of trade of Nation B 
D) any of the above 
A) will reduce the terms of trade of Nation A 
B) will increase the terms of trade of Nation A 
C) will reduce the terms of trade of Nation B 
D) any of the above

Question 10

Dynamic factors in trade theory refer to changes in:

Accepted Answer

A) factor endowments 
B) technology 
C) tastes 
D) all of the above 
A) factor endowments 
B) technology 
C) tastes 
D) all of the above

Question 11

Doubling L with trade in a small L-abundant nation:

Accepted Answer

A) reduces the nation's social welfare 
B) reduces the nation's terms of trade 
C) reduces the volume of trade 
D) all of the above 
A) reduces the nation's social welfare 
B) reduces the nation's terms of trade 
C) reduces the volume of trade 
D) all of the above

Question 12

A proportionately greater increase in the nation's supply of labor than of capital is likely to result in a deterioration in the nation's terms of trade if the nation exports:

Accepted Answer

A) the K-intensive commodity 
B) the L-intensive commodity 
C) either commodity 
D) both commodities 
A) the K-intensive commodity 
B) the L-intensive commodity 
C) either commodity 
D) both commodities

Question 13

If,at unchanged terms of trade,a nation wants to trade more after growth,then the nation's terms of trade can be expected to:

Accepted Answer

A) deteriorate 
B) improve 
C) remain unchanged 
D) any of the above 
A) deteriorate 
B) improve 
C) remain unchanged 
D) any of the above

Question 14

A 50 percent productivity increase in the production of commodity Y:

Accepted Answer

A) increases the output of commodity Y by 50 percent 
B) does not affect the output of X 
C) shifts the production frontier in the Y direction only 
D) any of the above 
A) increases the output of commodity Y by 50 percent 
B) does not affect the output of X 
C) shifts the production frontier in the Y direction only 
D) any of the above

Question 15

Doubling L with trade in a large L-abundant nation:

Accepted Answer

A) reduces the nation's social welfare 
B) reduces the nation's terms of trade 
C) reduces the volume of trade 
D) all of the above 
A) reduces the nation's social welfare 
B) reduces the nation's terms of trade 
C) reduces the volume of trade 
D) all of the above

An increase in tastes for the import commodity in both nations:

Doubling K with trade in a large L-abundant nation:

Doubling L is likely to:

Doubling only the amount of L available under constant returns to scale:

The Rybczynski theorem postulates that doubling L at constant relative commodity prices:

Technical progress in the nation's export commodity:

Technical progress that increases the productivity of L proportionately more than the productivity of K is called:

Doubling the amount of L and K under constant returns to scale:

An increase in tastes of the import commodity of Nation A and export in B:

Dynamic factors in trade theory refer to changes in:

Doubling L with trade in a small L-abundant nation:

A proportionately greater increase in the nation's supply of labor than of capital is likely to result in a deterioration in the nation's terms of trade if the nation exports:

If,at unchanged terms of trade,a nation wants to trade more after growth,then the nation's terms of trade can be expected to:

A 50 percent productivity increase in the production of commodity Y:

Doubling L with trade in a large L-abundant nation:

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, Offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economies of Scale, Imperfect Competition, 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

Filters

Exam 7: Economic Growth and International Trade

An increase in tastes for the import commodity in both nations:

Doubling K with trade in a large L-abundant nation:

Doubling L is likely to:

Doubling only the amount of L available under constant returns to scale:

The Rybczynski theorem postulates that doubling L at constant relative commodity prices:

Technical progress in the nation's export commodity:

Technical progress that increases the productivity of L proportionately more than the productivity of K is called:

Doubling the amount of L and K under constant returns to scale:

An increase in tastes of the import commodity of Nation A and export in B:

Dynamic factors in trade theory refer to changes in:

Doubling L with trade in a small L-abundant nation:

A proportionately greater increase in the nation's supply of labor than of capital is likely to result in a deterioration in the nation's terms of trade if the nation exports:

If,at unchanged terms of trade,a nation wants to trade more after growth,then the nation's terms of trade can be expected to:

A 50 percent productivity increase in the production of commodity Y:

Doubling L with trade in a large L-abundant nation:

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, Offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economies of Scale, Imperfect Competition, 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

Filters