Question 1

Those who will lose from free trade are ________ factors in sectors that produce goods that are ________.

Accepted Answer

A) immobile;also imported 
B) mobile;also imported 
C) immobile;exported 
D) mobile;exported 
E) mobile;untraded 
A) immobile;also imported 
B) mobile;also imported 
C) immobile;exported 
D) mobile;exported 
E) mobile;untraded

Question 2

The Ricardian model of international trade demonstrates that trade can be mutually beneficial.Why,then,do governments restrict imports of some goods?

Accepted Answer

A) Trade can have substantial effects on a country's distribution of income. 
B) The Ricardian model is often incorrect in its prediction that trade can be mutually beneficial. 
C) Import restrictions are the result of trade wars between hostile countries. 
D) Imports are only restricted when foreign-made goods do not meet domestic standards of quality. 
E) Restrictions on imports are intended to benefit domestic consumers. 
A) Trade can have substantial effects on a country's distribution of income. 
B) The Ricardian model is often incorrect in its prediction that trade can be mutually beneficial. 
C) Import restrictions are the result of trade wars between hostile countries. 
D) Imports are only restricted when foreign-made goods do not meet domestic standards of quality. 
E) Restrictions on imports are intended to benefit domestic consumers.

Question 3

In the two-country model of international labor mobility

Accepted Answer

A) migration results in increased global output,although some groups are made worse off. 
B) migration results in increased global output,and all groups are made better off. 
C) migration has no effect on global output,although some groups are made worse off. 
D) migration has no effect on global output,although some groups are made better off. 
E) migration may reduce global output,although some groups are made better off. 
A) migration results in increased global output,although some groups are made worse off. 
B) migration results in increased global output,and all groups are made better off. 
C) migration has no effect on global output,although some groups are made worse off. 
D) migration has no effect on global output,although some groups are made better off. 
E) migration may reduce global output,although some groups are made better off.

Question 4

A factor of production that cannot be used outside of a particular sector of an economy is a(an)

Accepted Answer

A) specific factor. 
B) mobile factor. 
C) variable factor. 
D) import-competing factor. 
E) export-competing factor. 
A) specific factor. 
B) mobile factor. 
C) variable factor. 
D) import-competing factor. 
E) export-competing factor.

Question 5

In the specific factors model,a 5% increase in the price of food accompanied by a 1% increase in the price of cloth will cause ________ in the welfare of labor,________ in the welfare of the fixed factor in the production of food,and ________ in the welfare of the fixed factor in the production of cloth.

Accepted Answer

A) an ambiguous change;an increase;a decrease 
B) an ambiguous change;a decrease;an increase 
C) an ambiguous change;an ambiguous change;an ambiguous change 
D) a decrease;an ambiguous change;an ambiguous change 
E) an increase;a decrease;an increase 
A) an ambiguous change;an increase;a decrease 
B) an ambiguous change;a decrease;an increase 
C) an ambiguous change;an ambiguous change;an ambiguous change 
D) a decrease;an ambiguous change;an ambiguous change 
E) an increase;a decrease;an increase

Question 6

Under perfect competition,the equilibrium price of labor used to produce cloth will be equal to

Accepted Answer

A) the marginal product of labor in the production of cloth times the price of cloth. 
B) the average product of labor in the production of cloth times the price of cloth. 
C) the ratio of the marginal product of labor in the production of cloth to the marginal product of labor in the production of food times the ratio of the price of cloth.to the price of food. 
D) the slope of the production possibility frontier. 
E) the price of cloth divided by the marginal product of labor in the production of cloth. 
A) the marginal product of labor in the production of cloth times the price of cloth. 
B) the average product of labor in the production of cloth times the price of cloth. 
C) the ratio of the marginal product of labor in the production of cloth to the marginal product of labor in the production of food times the ratio of the price of cloth.to the price of food. 
D) the slope of the production possibility frontier. 
E) the price of cloth divided by the marginal product of labor in the production of cloth.

Question 7

U.S.imports of sugar are limited by an import quota that,according to a study updated in 2013,imposed a total cost on American consumers close to $________,or an average cost of ________ per year for every job saved in the U.S sugar industry.

Accepted Answer

A) $3 billion;$10 
B) $105 million;$3 
C) $2 billion;$110 
D) $3 billion;$1,000,000 
E) $370 million;$20 
A) $3 billion;$10 
B) $105 million;$3 
C) $2 billion;$110 
D) $3 billion;$1,000,000 
E) $370 million;$20

Question 8

The overall welfare effects of trade are ________ if ________.

Accepted Answer

A) positive;those who gain can compensate those who lose and still be better off 
B) positive;more people gain from trade than lose from it 
C) negative;some people are made worse off by trade 
D) negative;those who lose can compel those who gain to compensate them for their losses 
E) positive;the domestic economy grows faster than do foreign economies 
A) positive;those who gain can compensate those who lose and still be better off 
B) positive;more people gain from trade than lose from it 
C) negative;some people are made worse off by trade 
D) negative;those who lose can compel those who gain to compensate them for their losses 
E) positive;the domestic economy grows faster than do foreign economies

Question 9

In the specific factors model,a 5% increase in the price of food accompanied by a 0% increase in the price of cloth will cause wages to ________,the production of cloth to ________,and the production of food to ________.

Accepted Answer

A) increase by less then 5%;decrease;increase 
B) increase by 5%;remain unchanged;remain unchanged 
C) increase by more then 5%;increase;remain unchanged 
D) remain constant;increase;increase 
E) remain constant;decrease;decrease 
A) increase by less then 5%;decrease;increase 
B) increase by 5%;remain unchanged;remain unchanged 
C) increase by more then 5%;increase;remain unchanged 
D) remain constant;increase;increase 
E) remain constant;decrease;decrease

Question 10

When a country's labor market is in equilibrium in the specific factors model,the wage rate

Accepted Answer

A) will be the same in both sectors. 
B) will be higher in the export-competing sector. 
C) will be higher in the import-competing sector. 
D) will be higher in the sector where product price is higher. 
E) will be higher in the sector where product price is lower. 
A) will be the same in both sectors. 
B) will be higher in the export-competing sector. 
C) will be higher in the import-competing sector. 
D) will be higher in the sector where product price is higher. 
E) will be higher in the sector where product price is lower.

Those who will lose from free trade are factors in sectors that produce goods that are .

The Ricardian model of international trade demonstrates that trade can be mutually beneficial.Why,then,do governments restrict imports of some goods?

In the two-country model of international labor mobility

A factor of production that cannot be used outside of a particular sector of an economy is a(an)

In the specific factors model,a 5% increase in the price of food accompanied by a 1% increase in the price of cloth will cause in the welfare of labor, in the welfare of the fixed factor in the production of food,and in the welfare of the fixed factor in the production of cloth.

Under perfect competition,the equilibrium price of labor used to produce cloth will be equal to

U.S.imports of sugar are limited by an import quota that,according to a study updated in 2013,imposed a total cost on American consumers close to $,or an average cost of per year for every job saved in the U.S sugar industry.

The overall welfare effects of trade are if .

In the specific factors model,a 5% increase in the price of food accompanied by a 0% increase in the price of cloth will cause wages to ,the production of cloth to ,and the production of food to .

When a country's labor market is in equilibrium in the specific factors model,the wage rate

Introduction

World Trade: An Overview

Labor Productivity and Comparative Advantage: The Ricardian Model

Resources and Trade: the Heckscher-Ohlin Model

The Standard Trade Model

External Economies of Scale and the International Location of Production

Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

National Income Accounting and the Balance of Payments

Exchange Rates and the Foreign Exchange Market: An Asset Approach

Money,Interest Rates, and Exchange Rates

Price Levels and the Exchange Rate in the Long Run

Output and the Exchange Rate in the Short Run

Fixed Exchange Rates and Foreign Exchange Intervention

International Monetary Systems: An Historical Overview

Financial Globalization: Opportunity and Crisis

Optimum Currency Areas and the Euro

Developing Countries: Growth, Crisis, and Reform

Filters

Exam 4: Specific Factors and Income Distribution

Those who will lose from free trade are ________ factors in sectors that produce goods that are ________.

The Ricardian model of international trade demonstrates that trade can be mutually beneficial.Why,then,do governments restrict imports of some goods?

In the two-country model of international labor mobility

A factor of production that cannot be used outside of a particular sector of an economy is a(an)

Under perfect competition,the equilibrium price of labor used to produce cloth will be equal to

U.S.imports of sugar are limited by an import quota that,according to a study updated in 2013,imposed a total cost on American consumers close to $________,or an average cost of ________ per year for every job saved in the U.S sugar industry.

The overall welfare effects of trade are ________ if ________.

In the specific factors model,a 5% increase in the price of food accompanied by a 0% increase in the price of cloth will cause wages to ________,the production of cloth to ________,and the production of food to ________.

When a country's labor market is in equilibrium in the specific factors model,the wage rate

Introduction

World Trade: An Overview

Labor Productivity and Comparative Advantage: The Ricardian Model

Resources and Trade: the Heckscher-Ohlin Model

The Standard Trade Model

External Economies of Scale and the International Location of Production

Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

National Income Accounting and the Balance of Payments

Exchange Rates and the Foreign Exchange Market: An Asset Approach

Money,Interest Rates, and Exchange Rates

Price Levels and the Exchange Rate in the Long Run

Output and the Exchange Rate in the Short Run

Fixed Exchange Rates and Foreign Exchange Intervention

International Monetary Systems: An Historical Overview

Financial Globalization: Opportunity and Crisis

Optimum Currency Areas and the Euro

Developing Countries: Growth, Crisis, and Reform

Filters

Those who will lose from free trade are factors in sectors that produce goods that are .

U.S.imports of sugar are limited by an import quota that,according to a study updated in 2013,imposed a total cost on American consumers close to $,or an average cost of per year for every job saved in the U.S sugar industry.

The overall welfare effects of trade are if .

In the specific factors model,a 5% increase in the price of food accompanied by a 0% increase in the price of cloth will cause wages to ,the production of cloth to ,and the production of food to .