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ECO Multiple Choice Ques

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Question;1. A long-run model of trade basic to the determination of how mobile factors of production affect national welfare and the returns to the factors is known as:the specific-factors model.the Ricardian model.the Chicago model of trade.the Heckscher-Ohlin model.2. The Hecksher-Ohlin model of international trade uses _____ and ______ to explain trade patterns.comparative, absolute advantagefactor abundance, factor intensityfactor availability, factor usabilitytariffs, quotas3. The Heckscher-Ohlin model simplifies the analysis by assuming:There is unemployment of workers in the home country.There are a variety of levels of workers and types of capital.Land is an important factor of production.There are only two nations, with two possible goods and two factors of production.4. In a capital-intensive industry, the capital/labor ratio will:rise as the wage/rental ratio falls.fall as the wage/rental ratio falls.rise as the country's capital stock rises.fall as the country's capital stock falls.5. The Heckscher-Ohlin model assumes that factors of production can move freely ______ but cannot move _______.domestically, internationallyafter they are fully trained, before the training period is overinternationally, domesticallywithin unskilled occupations, into high-skill jobs6. Which of the following industries is considered to be the most capital intensive?airplane manufacturingapparel manufacturinguniversity teachingfarming7. The Heckscher-Ohlin model assumes that production techniques within a nation use the factors of production:at different intensities depending on changing technology and which nation you are discussing.at different intensities for each industry, so that one is more or less intensive in that factor than the other.at the same intensity for each industry?for example, the ratio of capital to labor is the same for every industry in the nation.in no definite pattern.;8. Which of the following is not an assumption that the Heckscher-Ohlin model makes?The quantity of capital and labor in two nations is different for each nation?so we have different ?endowments? of capital and labor.The quantity of capital and labor in two nations is relatively abundant in one nation and relatively scarce in the other.The quantity of capital and labor in two nations is fixed in the short run.Labor and capital move between countries.9. The Heckscher-Ohlin Model assumes that:Factor endowments are same.Consumer tastes are the same across countries,The technologies used to produce the two goods are identical across the countries.Consumer tastes and technologies are the same across countries.Use the following to answer questions 10-13:Figure: Home and Foreign Autarky Equilibria10. (Figure: Home and Foreign Autarky Equilibria) Which line above represents the ?Home? relative price of computers in terms of shoes?A B) B C) C D) D11. (Figure: Home and Foreign Autarky Equilibria) According to the shapes of the two PPFs, which nation has a comparative advantage in the production of computers?A) homeB) foreignC) not enough information to tell;12. (Figure: Home and Foreign Autarky Equilibria) At which point will the Home nation find its ?no-trade? equilibrium consumption and production point?A) AB) BC) CD) U;13. (Figure: Home and Foreign Autarky Equilibria) If shoes are a labor-intensive industry, which nation has more labor resources?A) homeB) foreignC) not enough information to tell;Use the following to answer question 14:Table: Capital Intensity Across IndustriesA)B)C)D)14. (Table: Capital Intensity Across Industries) Which industry is the most labor intensive?apparellumberprimary metal industrieschemicals15. If there are only two nations, one nation's exports are the other's imports, which of thefollowing is identical for both nations?A) equilibrium relative priceB) trade triangleC) opportunity costD) equilibrium relative price, trade triangle, and opportunity cost;Use the following to answer questions 16-22:Figure: A Country's Before and After Trade Equilibria16. (Figure: A Country's Before and After Trade Equilibria) At what point will the nationpictured be in a no-trade equilibrium?A) A B)B C)C D)D17. (Figure: A Country's Before and After Trade Equilibria) What are the pretrade quantitiesof shoes and computers produced by this nation?300 shoes, 300 computers225 shoes, 175 computers225 shoes, 200 computers150 shoes, 300 computers18. (Figure: A Country's Before and After Trade Equilibria) What is the equilibrium posttrade point of production?A) A B)B C)C D)D;19. (Figure: A Country's Before and After Trade Equilibria) What are the post-trade quantities of shoes and computers produced by this nation?A) 300 shoes, 300 computersB) 225 shoes, 175 computersC) 225 shoes, 200 computersD) 150 shoes, 300 computers;20. (Figure: A Country's Before and After Trade Equilibria) What happened to the relative price of shoes in this nation after trade?A) Shoes became relatively more expensive in terms of computers.B) Shoes became relatively cheaper in terms of computers.C) Shoes were not as desirable after trade.D) The price of shoes did not change?only the quantity.

 

Paper#57580 | Written in 18-Jul-2015

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