Question 1

In the absence of trade,technical progress

Accepted Answer

A) tends to increase the nation's welfare. 
B) increases the nation's welfare only if it is labor-saving. 
C) increases the nation's welfare only if it is capital-saving. 
D) tends to decrease the nation's welfare. 
A) tends to increase the nation's welfare. 
B) increases the nation's welfare only if it is labor-saving. 
C) increases the nation's welfare only if it is capital-saving. 
D) tends to decrease the nation's welfare. A

Question 2

If the output of a nations exportable commodity increases proportionally more than the output of its importable commodity the output changes in considered

Accepted Answer

A) neutral 
B) negative 
C) anti-trade 
D) pro-trade 
A) neutral 
B) negative 
C) anti-trade 
D) pro-trade D

Question 3

What does the Rybczynski theorem postulate?

Accepted Answer

The Rybczynski theorem postulates that at constant commodity prices,an increase in the endowment of one factor will increase by a greater proportion the output of the commodity intensive in that factor and will reduce the output of the other commodity.

Question 4

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

Question 5

When a nation's growth deteriorates its terms of trade to the point that its welfare drops it is experiencing

Accepted Answer

A) debilitating growth 
B) immiserizing growth 
C) population growth 
D) GDP per capital growth 
A) debilitating growth 
B) immiserizing growth 
C) population growth 
D) GDP per capital growth

Question 6

Empirical studies have generally shown that most of the real per capita income increase in industrialized countries is due to

Accepted Answer

A) capital accumulation 
B) population growth 
C) technical progress 
D) infrastructure improvements 
A) capital accumulation 
B) population growth 
C) technical progress 
D) infrastructure improvements

Question 7

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) reduces the output of both commodities 
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) reduces the output of both commodities

Question 8

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 9

Doubling L with trade in a large L-abundant nation is most likely to:

Accepted Answer

A) increase the nation's social welfare 
B) reduces the nation's terms of trade 
C) reduces the volume of trade 
D) increase the welfare of individual citizens. 
A) increase the nation's social welfare 
B) reduces the nation's terms of trade 
C) reduces the volume of trade 
D) increase the welfare of individual citizens.

Question 10

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 11

Using the data presented in the chapter,explain how growth,trade,and welfare have changed in the leading industrial countries over the 1990-2010 period.

Accepted Answer

Answers will vary,but should include tha

Question 12

How does a change in tastes that shifts in a nation's offer curve toward the axis measuring its exportable commodity impact the nation?

Accepted Answer

Such a shift tends t

Question 13

A shift in a nation's offer curve toward the axis measuring the exportable commodity tends to ____________ trade at constant prices,and __________ the nation's terms of trade.

Accepted Answer

A) expand,improve 
B) expand,decrease 
C) decrease,improve 
D) decrease,decrease 
A) expand,improve 
B) expand,decrease 
C) decrease,improve 
D) decrease,decrease

Question 14

Use graphs to demonstrate the effect of an increase in a small country's capital stock at constant commodity prices.

Accepted Answer

See graphs below.Numbers are o

Question 15

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 16

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

Accepted Answer

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

Question 17

Technical progress is usually classified into all of the following except

Accepted Answer

A) neutral 
B) negative 
C) labor saving 
D) capital saving 
A) neutral 
B) negative 
C) labor saving 
D) capital saving

Question 18

If,at unchanged terms of trade,a nation wants to trade more after growth,then for a large country,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 19

Doubling the amount of L and K under constant returns to scale does all of the following except:

Accepted Answer

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

Question 20

What does it mean for a nation's production to be pro-trade?

Accepted Answer

A nation's production is pro-t

Exam 7: Economic Growth and International Trade

In the absence of trade,technical progress

If the output of a nations exportable commodity increases proportionally more than the output of its importable commodity the output changes in considered

What does the Rybczynski theorem postulate?

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

When a nation's growth deteriorates its terms of trade to the point that its welfare drops it is experiencing

Empirical studies have generally shown that most of the real per capita income increase in industrialized countries is due to

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

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

Doubling L with trade in a large L-abundant nation is most likely to:

Technical progress in the nation's export commodity:

Using the data presented in the chapter,explain how growth,trade,and welfare have changed in the leading industrial countries over the 1990-2010 period.

How does a change in tastes that shifts in a nation's offer curve toward the axis measuring its exportable commodity impact the nation?

A shift in a nation's offer curve toward the axis measuring the exportable commodity tends to ____________ trade at constant prices,and __________ the nation's terms of trade.

Use graphs to demonstrate the effect of an increase in a small country's capital stock at constant commodity prices.

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

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

Technical progress is usually classified into all of the following except

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

Doubling the amount of L and K under constant returns to scale does all of the following except:

What does it mean for a nation's production to be pro-trade?

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 Heckscher-Ohlin Theory

Economies of Scale, imperfect Competition, and International Trade

Economic Growth and International Trade

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

The Income Adjustment Mechanism and Synthesis of Automatic

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

A shift in a nation's offer curve toward the axis measuring the exportable commodity tends to __ trade at constant prices,and the nation's terms of trade.