Economics MCQs

Page No. 338

Wassily Leontief’s results can be interpreted as ?


a evidence against the Ricardi an model

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bevidence against the Heckscher-Ohl in model

✓


csupport for the Ricardian model

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dsupport for the Heckcher Ohlin model

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Leontief’s result were considered paradoxical because the United Stated was believed to be ?


atechnologically efficient relative to the rest of the world

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bcapital abundant relative to the rest of the world

✓


c labor abundant relative to the rest of the world

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dAll of the above

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In his empirical tests, Wassily Leontief used an input-output table to ?


acalculate the capital and labor required to produce $1 million of U.S exports and imports

✓


b calculate the labor productivity of America workers relative to foreign workers

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ccalculate the capital productivity of American capital relative to foreign capital

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dAll of the above

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Wassily Leontief used an input output table in order to test the ?


a Ricardian theory of comparative advantage

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b Heckscher Ohl in theory of comparative advantage

✓


cLinder theory of overlapping demand

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dAll of the above

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The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?


a tastes

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btechnology

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cfactor/resource

✓


dopportunity cost

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View Answer factor/resource

By reducing the volume of trade transportation costs tend to ?


a stop the process of product price equalization and factor price equalization before they are complete:

✓


bensure that the process of product price equalization and factor price equalization are complete

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celiminate all of the feasible gains from international trade

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d maximize all of the feasible gains from international trade

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The analyzes the income distribution effects of trade in the short run when resources are immobile among industries ?


aStolpher-Samuelson theory

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bfactor endowment theory

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cspecific factors theory

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doverlapping demand theory

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The comparative advantage model of Ricardo was based on ?


a intraindustry specialization and trade

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b interindustry specialization and trade

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cdemand conditions underlying specialization and trade

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d income conditions underlying specialization and trade

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According to the Heckscher-Ohlin model the source of comparative advantage is a country’s ?


a technology

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badvertising

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cfactor endowments

✓


dboth (a) and (c)

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View Answer factor endowments

Difference in environmental standards or other government regulations among nations ?


ahave no impact on patterns of international trade

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bhave tended to make U.S steel companies more competitive internationally

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c can affect production costs and thus alter comparative advantages and trade patterns

✓


dhave been eliminated by the nations participating in NAFTA

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